The Employees’ provident fund came into existence with the promulgation of the employees’ provident fund ordinance on the 15th November 1951; it was replaced by the employees’ provident fund act 1952.
Provident Fund Deducted on Basic + D.A + Cash value of Food Allowance @ 12%. It is a statutory deduction. D.A is provided only in government departments. Private companies generally do not give Daily Allowance to its employees.
Company pays PF on either actual basic or Capped Basic. Capped basic decided depend on Company rules it is not restricted. It’s applicable those employee basic exceeds Rs. 15,000/- only.
Employers and Employee Contribution is equal in P.F which 12%. This means 12% Contribution from Employee and 12% Contribution from Employer. Company contribution is split into two parts. 8.33 % on Family pension Fund and 3.67 % on Employee Provident Fund.
Documents Required for PF Registration
- Memorandum & Articles of Association with Certificate
- Scanned Copy of PAN
- List of board of directors
- Factory/company licence
- Sale deed
- Bank account details
- Details of employees
- Nomination forms in form 2
- Others if any…