What is full form of PF?
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 PF account, earlier it was 6500 rupees. After knowing pf full form, now it is rihgt time to discuss about the structure and rates of pf .
Structure and rates of PF:
PF is deducted on basis salary. If employee who has less than 15000rs basic salary, he has right you have PF contribution. The rate of PF is 12% form both employee and employer side.
Date challan and Return of PF deduction:
The PF challan is submitted very month at 20 for previous month and return is submitted quarterly at 25th o next month of the quarter. Due date of PF Annual Return is 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.
Example: if a person has basic salary of 10000 rupees, then 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. Employer has to apply PF scheme in the office.
Other update: 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 PF scheme and get benefit under pf act. Now EPFO (Employees Provident Fund Organization) has hiked the minimum salary limit of 15000 rupees from 6500 rupees. Here you can get benefit into two ways. Firstly, you will get 12% of his basic pay form the employee side. Secondly, he will able to save money and get decent interest amount on that. The changes in pf maximum limit will give benefit to 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:
♦ Power Factor