Any Organization having 20 and above employees are need to have PF coverage. It is mandatory for every company, shops, hospitals and all establishments. The salary limit is fixed up to Rs. 15000/- p.m. This article is about Opening and Transfer Employees Provident Fund based on the rules applicable.
The Employee has salary is Rs.15000/- and above it is not compulsory, but if the employee having PF in his previous company and the salary in his newly joined company is above Rs.15000/- ,it is the responsibility of the Employer to cut the PF amount and pay the same in PF Account. Normally PF amount is deducted for BASIC and DA. But some establishments salary structure having allowances like, conveyance,special allowance, HRA, Medical allowances etc. In that case, this compulsory to deduct the amount except ” HRA”.
All any other Allowances payable by an employer is covered for PF. He can limit the salary up to Rs.15000/- and if he wish to pay more than Rs.15000/- he can do.Rs.15000/- is compulsory limit. 12% of the salary amount is deducting from the Employees for PF and the same amount is to be paid by the Employer. Employer can use” E RETURN TOOLS” Software for entering the details of the Employees and make Chelan and pay the amount by online. The software can download from EPF Website. The Website address is www.epfindia.gov.in For registering for PF , the employer submit a request letter to EPF Office and the PF Enforcement officer inspect the firm and he guides for submitting the relevant document.
Needs license issued from government for starting the establishment , address proof owners details, no of employees, copy of attendance register, wage register, bank statement of company etc . Employer can directly register by online from EPF website. Use the link “online registration of Establishment (OLRE PORTAL)”. PAN Card is mandatory for registering an establishment. If the company having single owner PAN Card for the owner is enough, but if it is a partnership firm or limited company the PAN Card must be in the name of the establishment.
After registering a company by online Employer gets a PF Account number and user name and password for operating the same. After that details entered in the E RETURN TOOL” software the employer can prepare the Chelan and can make online payment From May 2015 onwards PF payments must be made only by online transaction. “E Return tools” software is very user friendly and easily can manage. The Employer can get the annual account clearance of every employee from the EPFO website.
UAN (Unique Account Number) is allotted for every employees. It is very useful for the employees to know their account balance at any time. And also it is useful for online transfer and claiming of their account.
When a new Employee joins in an establishment he gets a PF Account that is given by the employer. And when he resigns from the company and joins a new organization, a new PF Account is opened in that company. After one month he can transfer the previous PF amount to new Account Opened by new Employer.
PF Transfer from old company to new one, which can be done after one month to any time , that is one year, five year or even 10 years after. You amount will be still at that PF number and it will not become lapse. Every year thousands of people are not transferring their old PF and crores of money are lying unclaimed with Provident Fund Department.