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IS PROVIDENT FUND

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  • pg 1
									IS PROVIDENT FUND
A TOOL FOR SAVINGS ?
           MEMBERS
   RAVI SINGH
   HIRAL THAKKAR
   REVATHI SURESH
   SHRUTIKA
   POOJA SINGH
     INTRODUCTION
 Employee Provident fund or EPF is a
    fund made up of contributions by
  the employee during the time he has
      worked, along with an equal
  contribution from the employer. It is
      calculated as a percentage of
  employee’s salary (Basic Salary +DA
    + Retaining allowance), normally
  12%, and returned upon retirement.
        ELIGIBILITY

  All the employees (including casual,
    part time, Daily wage contract etc.)
   other then an excluded employee are
  required to be enrolled as members of
  the fund and the day they are enrolled
   the EPF Act,1952 comes into force in
            such establishment.
 Every industry employing 10 or more
  persons
          THE EPF ACT
• The Employees Provident Funds Act 1952
  is compulsory contributory fund for the
  future of an employee after retirement or
  for his dependents in case of his early
  death
• Act is applicable to all states of India
  except Jammu and Kashmir
      OBJECTIVES OF EPF
   Providing old age / post service financial support /
    income security to the member / dependent
    survivors.

   Assigning employers liability to make contribution
    in raising the fund for the benefit of employees and
    their dependent survivors on compulsory basis.

   Promoting thrift habit amongst employees and
    enlarging domestic savings base.

   Providing risk free and immunized deposit
    accretion to the member free from attachment etc.

   Augmenting resource availability      position   for
    national economic development.
            WHY ?

 The Government wants to tell us the
   importance of routine saving over a
 long time. This lump sum given during
     retirement can be used by the
  employee to continue his life without
 being financially dependent on anyone
          and stand on his own
CASE
                 BENEFITS
  Apart from being a tool for our retirement savings,
     Provident Fund offers numerous more benefits:
            PF entitles you to get Pensions
   8.33% of employer contribution goes towards
                         pension.
 Employee Provident Fund in India provides insurance
   too – 0.5% of your monthly basic pay goes towards
     providing you insurance. The insurance cover is
                      maximum of –
  1) 20 times the average monthly wage (maximum of
         Rs 6500) – which comes to Rs 1,30,000
    2) Full amount in your PF account up to Rs 50,000
               and 40% of balance amount
                        CONT.
 1. Employer also contributes to Members PF @ 12% (
  10% in case of sick industrial co., any establishment
  having accumulated loss equal to its entire paid up
  capital and any establishment in Jute Industry, Beedi
  Industry, Brick Industry, Coir Industry and Gaur Gum
  Factories. )
  2. EPFO guarantees the Employer contribution and
  credits interest at such rates as determined by the
  Central Government.
  3. Member can withdraw from this accumulations to
  cater to financial exigencies in life - No need to refund
  unless misused
  4. On resignation, the member can settle the account.
  i.e., the member gets his PF contribution, Employer
  Contribution and Interest.
  PARTIAL WITHDRAWAL
  Additionally provident fund may be
      withdrawn partially to meet
           expenses such as –
 Marriage of self, siblings or children
 Construction or Purchase of house or
             flat/site or plot
      Repaying of housing loan
     Repairs to an existing home
•        Upon closure of establishment and non-payment
                             of wages.
        • For meeting medical expenditure involving
                hospitalization/Surgical Operation
    •     Upon damage of property as a result of natural
                             calamity.
•        For the purpose of education of son or daughter.
•        For purchasing support equipment for physically
                           handicapped.
•         Before one year of retirement after attaining 54
                           years of age.
                   ESSENCE
 Securing employees’ future through collective
  contribution and compounded interest is the
  essence behind the Provident Fund Act.

    Employees with salaries up to a specified salary
    ceiling are obliged to contribute to the fund while
    those with above the ceiling salary can opt to
    become a member.

 While the Provident Fund Act stipulates twelve
  percent is deposited totally, 8.33% of it is
  secured as Pension scheme.
    A company with twenty or more employees
    excluding casual employment and apprenticeships is
    covered by the Act.

 It is regulated by a national office that usually sends
  employers the details of the funds’ accumulations
  including its opening balance, contributions and
  withdrawals during the year, earned interest and
  closing balance.

 As the financial year is completed, this statement is
  sent out to the employees usually by the company’s
  HR department.
         Death Benefits
 Provident Fund Amount to Family (or to Nominee)

 Pension to Family (or to Parent / Nominee)

 Capital Return of Pension

 Insurance (EDLI) amount to Family (or to Nominee)

 No amount is taken from Member for this facility.
  Employer contributes for this.

 Nominee is basically determined as per the information
  submitted by the member at this office through FORM-2
CASE
THANK YOU

								
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