PF FULL FORM: Provident Fund
PF stands for provident fund. In India, it is mandatory for an employee to have a provident fund account. If his income doesn’t exceed 15000 rupees, he has to maintain the PF account, earlier it was 6500 rupees. After knowing pf full form, now it is the right time to discuss the structure and rates of pf.
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| PF FULL FORM |
Structure and rates of PF
PF is deducted on basic salary. If the employee has less than 15000rs basic salary, he has the right you have PF contribution. The rate of PF is 12% from both the employee and employer sides.
Date challan and Return of PF deduction
The PF challan is submitted every month at 20 for the previous month and the return is submitted quarterly on the 25th o the next month of the quarter. The due date of PF Annual Return is the 25th of April at every year.
PF role in salary structure
If I tell about the PF roles in salary, would like to tell that it plays an important role while calculating salary. PF is always calculated on basic salary.
For example: if a person has a basic salary of 10000 rupees, then the PF amount will be 12% of 10000 rupees = 1200 rupees on basic salary.
Applicability of PF on business
It is mandatory to apply for PF Scheme by the company if the number of employees crosses the minimum employee’s limit that is twenty. The employer has to apply PF scheme in the office.
Other updates: Minimum salary limit is hiked for PF account
It is good news for those employees who have more than 6500 basic pay, who want to be part of the PF scheme and get benefits under the pf act. Now EPFO (Employees Provident Fund Organization) has hiked the minimum salary limit of 15000 rupees from 6500 rupees. Here you can get benefits in two ways. Firstly, you will get 12% of his basic pay from the employee side. Secondly, he will able to save money and get a decent interest amount on that. The changes in pf maximum limit will give benefit more than 28 lakhs people in India. Now the person who has basic pay between 6500 rupees to 15000 rupees can avail this benefit.
Distribution and Pf rate in India
12 percent of employer salary goes to PF fund and form the employee’s side 8.33% goes into the Employee contribution and 3.3% goes into the employee pension scheme which is utilized to give pension to the employee at their retirement age.
Other PF full form
- Preferred Form
- Power Forward
- Power Factor
- Personal Fouls
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