About Provident Fund: PF or EPF is known as Employee Provident Fund. It is a scheme that is designed to benefit salaried employees after retirement. Approximately, 12% of an employee’s salary is automatically deducted from the Provident Fund account. The employer also contributes the same 12% to the PF account. Interest is earned annually from the cash in the PF account. Whenever a job change is made, the amount can be withdrawn or transferred. This fund is maintained by the government under the Employees Provident Fund Organization (EPFO) of India.
EPF Act is a little bit more complex than ESI Act. Its contribution is also much greater than the ESI Act, approximately 4%. In India, more than 7,00,00,000 Indians come under the Provident Fund Scheme. This means that it is not only India’s, but the World’s largest social security scheme.
Employee Provident Fund consists mainly of 3 major schemes:
• Employee Provident Fund Scheme (EPF). This scheme promotes retirement savings.
• Employee Pension Scheme (EPS). This scheme promotes post retirement pension.
• Employee Deposit Linked Insurance Scheme (EDLI). This scheme provides relief to family members in the case of untimely death of a family member.
All business owners who are covered under schedule 1 of EPF Act are applicable for EPF. PF Act is applicable to all those industries who have an employee strength of 20 or more. Even if employee strength becomes less than 20 the company will stay covered in the EPF Act. Once covered by the EPF Act will always be covered. Employees whose salary (that is basic +DA) is 15,000 or less is applicable for EPF.
The process of transfer of employee’s provident fund balance has become completely seamless by the Provident Fund Organization. After switching jobs, a new employee need not make a transfer request online. Upon joining a new organization, the employee has to just provide certain information to the new employer, who will upload it on to the EPFO portal, which will make the auto-transfer possible.
Both business owners and employees require a reliable PF consultant to handle matters related to Provident Fund. Handling an employees’ provident fund can be quite an issue. There are so many hassles and laws that are applicable such as the Employees Provident Fund and Miscellaneous Provisions Act, etc. PF Consultancy Service in Delhi take care of all these issues.
A new startup requires PF registration. Existing companies require maintenance of monthly and annual process of paperwork and records of existing as well as new employees, taking care of withdrawals and transfers of retiring employees as well as international workers. All these will be managed efficiently by PF consultants in Delhi NCR.
Services provided: PF consultants in Delhi NCR possess highly experienced teams and are able to provide excellent services. Reliable PF consultants will provide a wide range of services. A customized solution is also provided so that business owners chose the required service as per their need. The list of services provided by PF consultants in Delhi NCR are as follows:
1. New company registration. In the case of startups:
• Obtaining PF registration code number for new business owners and filing of necessary paperwork within the prescribed time as per Act.
• Form 5A (Return of ownership).
• Form 9 (revised).
• Specimen signature submission.
2. On a monthly basis:
• Creating a salary register.
• Making monthly challans for PF and deposit into bank within the prescribed time as per Act.
• Filling for return on a monthly basis: Form 12A (revised); Form 5 (new employee); form 10 (Resigned).
• PF Eligibility Register.
• Creating a PF ledger on a monthly basis.
• Surrendering of the declaration of PF and ESI to the respected offices after collecting from the employer.
• Keeping the employer up-to-date regarding any changes in ESI, PF, Minimum Wages, etc.
• Appropriate coordination with the authorities of PF and ESI for any kind of communication between the Labor Law Department and the employer.
3. On an annual basis:
• Form 3-A (contribution of an employee on a monthly basis).
• Form 6-A (Annual Return).
• Bank reunion.
• Soft copy of database file.
• Issuing annual PF account slips.
4. At the time of PF withdrawals and transfers
• Receipt of forms (19 & 10-C) after 60 days of employee resignation making settlement.
• In the case of a new employee, a receipt of PF transfer forms (Form 13) needs to be sent to RPFC/Ex-Employers trust for transfer of funds.
• Taking care of the process of PF withdrawals and transfer within the prescribed time as per Act.
• Scrutiny of papers to ensure that the same is within the norms as specified under the rules.
• Accepting the transfer received.
5. For International Worker, statement IW-I.
To ensure employee satisfaction, an employer needs to make sure that an employee is not burdened by having to fill forms and do mundane paperwork related to their provident fund, and run around making sure that their funds have been transferred safely or not. PF Consultancy Service in Delhi makes sure that all the paperwork related to provident fund is taken care of in an effective manner and employees are not burdened by this hectic procedure.
Gone are the days when an employee used to work in the same firm for many years. As today’s youth have a variety of job opportunities to choose from, they no longer stick to one job. They keep shifting and switching jobs according to their liking. So, when it comes to management of PF for both the employer and employee, PF Consultancy Service in Delhi take care of all the issues pertaining to provident fund transfer and play a huge role in handling all the paperwork, taking care of the laws related to PF, and transfer of funds. This, in turn, will ensure better productivity of an employee by providing financial security and stability rather than having to worry about transferring there provident fund money.