4.1
In India, the Employee Provident Fund (EPF) serves as a crucial savings platform for the working class. An establishment or business is mandated to obtain an Employer Identification Number (EIN) if the total employee strength is 20 or more. This count includes regular employees as well as contractors, temporary employees like housekeeping staff, daily wage workers, security personnel, or other temporary workers.
Even if a company has an employee strength of fewer than 20, it can still apply for an EIN voluntarily. The Provident Fund Registration certificate should be obtained within 30 days from the date of reaching a total employee strength of 20 or more.
The Provident Fund provides risk coverage for employees and their dependents, offering financial support in situations such as retirement, illness, or the demise of the employee.
The Provident Fund account is steady and transferable, allowing employees to carry it forward to any other place of employment.
The Employee Deposit Linked Insurance Scheme is applicable to all PF account holders. It involves deducting 0.5% of the salary for life insurance premiums.
The accumulated PF amount can be used to meet long-term goals, such as funding marriage or higher education, providing a financial cushion during such occasions.
The PF amount can be accessed in times of emergency, helping employees address unforeseen events like family occasions, mishaps, or illnesses that require urgent financial support.
In addition to the employee's 12% contribution towards the Employee Provident Fund (EPF), an equal amount is contributed by the employer. This includes 8.33% towards the Employee Pension Scheme (EPS), providing coverage for pension benefits.
12% of Basic Salary + DA shall be deducted on monthly basis of the employee as his contribution towards the Employee Provident Fund.
Every employee who is contributing to EPF is allotted a 12-digit UAN which allows portability of PF accounts from one employer to another.
Deposition of EPFcontributions due date is 15th of every month
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