Compliance series-02

Have you ever noticed what are all the clauses , eligibility criteria and legal reason behind your monthly PF contribution.

As per Employee Provident Fund Miscellaneous provisions act, 1952 stated compulsory contributory fund for the post-retirement life of employee or their dependents incase of early death.

In this Provident Fund, there are two components viz.,

1. Employee Pension Scheme- employee or his/her dependent will get monthly pension post the retirement.
2. Employee Provident Fund- employee or his/her dependent will get Lumpsum amount at the time of retirement

Rate of contribution:

1. Employer : 12 % (8.33 % for EPS + 3.67 % for PF) from Basic Pay + Dearness Allowance
2. Employee: 12 % of Basic pay + Dearness Allowance.