Knowledge Sharing on

Provident Fund
Conducted by –
BHARAT FIH - HR Compliance Team
 Compliance Team – Org Chart
ABRAHAM JOSEPH
CHRO

BOBBY J
Sr. MANAGER

SITE 2 ----------------------- SITE 3, FIHD & RSHT ----------------- AP

Balaganesh Balaganesh Shanath Kumar M

Deputy Manager Deputy Manager Asst. Manager
EPFO SCHEMES
• Employee’s Provident Funds Scheme 1952 (EPF)

• Employee’s Pension Scheme 1995 (EPS)

• Employee’s Deposit Linked Insurance Scheme 1976 (EDLI)

The Employee’s Provident Fund Act 1952
• It is one of the Social Security Act.
• It’s purpose is to give economic stability to individual after their retirement.
• This act helps to facilitate to save a small portion of one’s salary and help
him during the times of need.
• The implementation of Act has improved drastically over the period of time
and now it is one of the hassle free government system.
• Many benefits are available for the beneficiary in the Act.
• Pension
• EDLI
• Provident Fund
• Marriage Advance
• House Loan
• Illness Loan
The Employee’s Provident Funds Scheme 1952 (EPF)
• Partial withdrawals permitted for
• Financing life insurance policies
• Acquiring house or Site
• Marriage of Self or dependents
• Education of Children
• Treatment of illness etc.
• Accumulations payable on retirement, resignation or death
• EPF can be claimed through
• Form - 19 (Withdrawal)
• Form - 31 (Partial Withdrawal)
• Form - 20 (On death of member)
The Employee’s Pension Scheme 1995 (EPS)
• Entitlement for Pension after 10years of Service & on attaining the
age of 58 yrs.
• Pension admissible to dependents; widow, children, dependent
parent & nominee.
• EPS can be claimed through Form – 10D.
• Any employee with gross salary of above 15,000/- after the year 2015
is not eligible for Pension, all his contribution will be accumulated in
the Provident Fund only.
How PF works
• Any organisation having more than 20 employee’s should be
registered with PF Authorities.
• PF to be deducted from every month salary and to be contributed to
the respective employee PF account.
• The contribution should be paid on or before 15th of every month.
• 12% of (basic + other allowance) is deducted from monthly salary of
employee
• The Basic salary capping is limited up to 15,000/- as the max limit for
PF.
• Even if the salary (Basic + other allowance) exceeds 15,000/- the
compulsory limit for organisation is 15,000/-
Present Rate of Contribution
BY CONTRIBUTION ACCOUNTS ADMINISTRATION ACCOUNTS
EPF A/C - 01 EPS A/C 10 EDLI A/C 02 EPF A/C 21 EDLI A/C 22
EMPLOYEE 12% 0% 0% 0% 0%
EMPLOYER 3.67% (OR) Diff 8.33% 0.50% 0.50% 0%
of EE share and
Pension
Contribution

• A equal amount of contribution i.e 12% is contributed by employer towards PF of the employee.
• Ex. “A” gets a salary of 20,000/- and his basic + other allowance is 15,000/- then his total PF contribution is
1800 + 1800 (12% Emply + 12% Emplyr) = 3600 per month.
• As per the above example every month 3600/- credited to the employee PF account on which the
PF organisation pays simple interest of 8.1% per annum*.
• The PF contribution in-turn managed by EPFO organisation and accounted into 2 different category.
• 12% + 12% = 24% is divided as 8.33% + 15.67% (12% + 3.67%).
• 8.33% is Pension Fund & 15.67% is Provident fund.
How PF works
• Pension fund (8.33%) is paid once we cross 58 years or on the
retirement
• Provident fund (15.67%) is paid once we apply for withdrawal for any
of the following reason
• Retirement from Job
• Attained Superannuation age which is 58 years
• Land Purchase/House Loan
• Marriage Loan
• Illness loan
• Covid Loan
• Withdrawal of Provident Fund attracts Income Tax if the contribution
period is less than 5 years
Must Do’s for a smooth PF management
• Declaration of all the relevant details to be provided
• Share of contribution to be clearly mentioned among family members
(Parents, Spouse & Children)
• A fresh declaration/nomination form to submitted after marriage by the
member to avoid confusion.
• E-nomination to be filled properly and updated if there is any changes
• Details of Aadhar, Bank A/C & PAN to match exactly with the details
given in PF portal
• UAN & Login details to be saved and kept confidentially at all times.
• Transfer of the PF to be carried out immediately upon Job change.
Some unknown Facts about PF
• The PF contribution is paid into 4 account’s.
• Each accounts is for a specific reason
• A/C – 1 Provident Fund , 12% + 3.67% = 15.67%
• A/C – 2 Admin Charges, 0.50%
• A/C – 10 Pension Fund, 8.33%
• A/C – 21 EDLI Charges, 0.50%
• EDLI? – Employee Deposit Linked Insurance
• This is a welfare payment paid by PF in case of any unfortunate event of a member
death.
• The amount will be paid to the members Kith & Kin.
• The family gets a maximum of 7 lacs and a minimum as per the following working:
• Average Basic pay X 30 times + 2.5 lacs.
• The Average basic should not exceed a maximum of 15,000/-
• Example 15,000 X 30 + 2,50,000 = 7,00,000/-
Some Lesser known Facts about PF
• Voluntary Provident Fund – VPF
• Employee can contribute over and above the mandatory 12% towards his
provident fund.
• There is not limit for the same.
• His entire 100% of salary can be contributed towards VPF
• To avail this facility one needs to fill the request form and get it approved by
the CHRO and hand it over to Payroll Team.
• For further details and assistance, please contact the payroll team.
Why I have issues with PF
• The data given in the PF portal are in-correct or adequate
• Not updating the declaration form after marriage or Child birth
• Not filling the e-nomination in the portal
• Details of Aadhaar, Bank A/C, PAN in PF portal are mismatching with
EPF Account.
• Not transferred the PF from my previous office (s)
• PF is not a bank and thinking that the withdrawal fund will come on-
time to take care of my financial need.
 Important Points:
1. Completing your e-Nomination in EPF
Member portal
2. Ensuring/updating your KYC details
(Aadhaar, Bank Account and PAN
details which is mandatory).
3. Transferring the Existing EPF
Account(s) to Current Employer.
 For further assistance please get in touch with our dedicated HR – Compliance Team
in the following contact details

BFIH – EPF & ESI Helpdesk

• WhatsApp # TN : +91 95662 62410 (BFIH, FIH Developer, SITE -2 & RSHT)
AP : +91 99405 31838
• Email – ID: TN: hrcompliance-tn@fih-Foxconn.com
AP: hrcompliance-ap@fih-Foxconn.com

THANK YOU