Aim Behind Granting Provident Fund
According to The Employees’ Provident Fund and Miscellaneous Provisions Act 1952, if you are running an organisation or firm that have more than 10 employee then you have to take care of PF, EPF or PP deduction for the welfare of your employee.
Apparently, the Provident deduction is made every month from the employee’s salary for a stress-free retirement. As well as, PF or Pension Fund is a self-financing and health insurance scheme for all the employees working in an organisation.
Major purposes for which employee withdraws from PF account
Usually, 12% of the basic salary is deducted on a monthly basis as a contribution towards a PF account and the employer also contribute 3.67% in the employee’s PF account. Every employee has right to withdraw money from the PF accounts according to their need or wants. Some of the purposes are given below:
- Repayment of home loan
- Marriage of self, children or sibling
- Home renovation
- Purchase or construction of house
- To meet unexpected medical expenses of self, parents, spouse and children
Apart from these purposes, an employee can also withdraw from the PF account for several reasons like, physical or mental disability, premature retirement, moving to a foreign country migrating to abroad or for better employment.
Since, HR department is a very sensitive part of an organisation because no employee accept inaccuracy in their salary slip. Accordingly, the computation of PF and labour compliances is not an easy job. As it is understood, the dispensing off the salaries includes many difficult tasks.
Hiring an outsourced PF Consultant is an easy way to minus the workload
The prehistoric belief “having in house PF Consultant is much cost effective than hiring outsourced PF Consultant” has become outmoded and most of the business tycoons believe in hiring outsourced PF Consultant. As being a business owner, you are responsible for the smooth running of an organization. So, consider hiring an outsourced Management consultants to discard the complication of provident fund, payroll and labour compliances estimation. You can seek to professional PF Consultant and financial experts to manage and transfer the PF account easily.
In addition to reducing the computation work some of the significant benefits of having a outsourced PF Consultant and management consultants are explained below:
- Manpower will be reduced.
- Save money as no IT infrastructure is required for inhouse PF Consultant
- Quick resolutions of employee issues regarding salary error.
- By reducing the workload increase the organisation’s productivity.
- Avoid Penalties.
- Deposit the PF, ESI and other statutory reports directly to the employee’s account.
Hiring a PF management consultant not only lessens the hardship involved but also creates a pathway for smooth & legit channel to function without any excessive work or financial load.