The Employee Provident Fund commonly abbreviated as EPF is an Indian government run scheme that looks into the retirement needs of employees. The scheme which is specifically set aside for employees in the public and private sectors has proven to be beneficial since you will never face any financial problem during your old age. Employees who are members of the EPF have to part with a certain percentage of their monthly salary hence you will not fill the pinch after making your contribution. These funds can then be accessed by a beneficiary as soon as you retire or when rendered jobless UAN Login.
Both the employee and employer have to make contributions in their EPF accounts at the end of every month. Employees have to part with 12℅ of their monthly salary as a contribution for the EPF scheme. This amount is deducted even before your receive your salary. On the other hand, an employer has to contribute some amount into the EPF scheme. The employer’s contribution is divided into the following parts:
Employer’s Provident Fund Scheme
Any establishment that has more than 20 employees and is among the 180 Industries under section 6 of the constitution must make do with 12℅ of the basic pay as EPF Contribution so long as they are earning more than Rs. 15000 per month. However, EPFO allows a voluntary contribution with a joint request from both the employee and employer. Unfortunately, the rate of contribution must remain 10℅ for most of these establishments. Some of the establishment that can make use of this option include:
- Any company which manufacturers Bricks and Jute. Factories in the Guar Gum industry are also in this category.
- An establishment whose loses add up to the entire net worth during the end of a financial year.
- Any organisation which is covered before September 22, 1997. However, this establishment must have less than 20 employees.
Sick industrial companies which are listed under the 1985 Act.
Employees’ Pension Scheme
The employer has to make do with 8.33% of their total WAGE as Employees’ Pension fund contribution. This is however restricted to a limit of Rs.15000 per month. In addition to this, the central government makes a contribution of 6℅ of the total wage towards EPS.
Employees Deposit Linked Insurance Scheme (EDLI)
Employees do not have to make any contribution from their monthly salary towards this scheme. However, the employer is supposed to part with 0.5℅ of the total wage that amounts to a maximum of Rs. 15000 each month. The maximum benefit of EDLI scheme can add up to Rs. 360000. In addition to this, an employer will also have to make a contribution of 0.01℅ for the main purpose EDLI administration charges. In total the employer is required to make 13.61% of the total wage as EPF Contribution Rim Protector.
By being. A member of EPFO, you will never again have to worry about life after retirement. Moreover, you can also get additional benefits like home loans, education loans or even medical loans. This will ensure that you do not enter your pocket whenever you have an emergency.
Latest posts by Danish Mehmood (see all)
- 7 Ways To Create Compelling Photography for Your Social Media - September 19, 2019
- 8 Reasons Why WordPress Could Be A Saviour For Your E-Business - September 17, 2019
- Gmail: A promising Email Service By Google - August 26, 2019