Is PF mandatory for employees?


Why employer PF is deducted from salary?

The PF scheme is managed under the Employees’ Provident Fund Organisation. Under this scheme, an employee has to pay a certain amount of sum from their salary towards the scheme. The employer makes an equal contribution to the scheme and the employee can avail the lump sum amount with interest on retirement.

How is PF calculated in salary?

– If you are a man, you must contribute 10% or 12% of your basic salary. – In case you are a new woman employee, it is 8% of your basic salary for the first 3 years. Thereafter, it becomes 10% or 12% of your basic salary. – Your employer has to contribute an amount equal to 10% or 12% of your basic salary towards EPF.

What is new rule of PF deduction?

New PF rule after amendment In her budget 2021 announcements, the FM had proposed that the interest earned on an employee’s contribution above Rs 2.5 lakh in a year will become taxable in the hands of the employee. As of today, the entire PF contribution earns a tax-free return and the PF amount enjoys EEE status.

Can a company give salary without PF?

If you have already pf account, then there is no option. Even your salary is upto Rs15,000 you have to pay pf amount. 3. If Your salary is less than 15,000 , in such case EPF deduction is mandatory.

What happens if company doesn’t provide PF?

1. If your employer does not deposit PF, you can file a criminal case against him in a police station. You need to file a complaint in the police station which comes under the jurisdiction of your employer.

When PF is required to be deducted?

Apparently, Bharatiya Mazdoor Sangh (BMS) has urged the government not to deduct PF of those persons whose monthly salary is Rs 15,000. They said the deduction as per Employees Provident Fund (EPF) should be done for those persons receiving Rs 21,000 as monthly salary.

Is PF mandatory for employees?

EPF is a retirement benefit plan where both employer and employee contribute a certain percentage of the salary. Who is eligible to join EPF scheme? According to the EPF scheme rules, it is mandatory for an employee to join the EPF scheme if his pay is less than or equal to Rs 15,000 a month.