Changes in EPF
Updated on Dec. 13, 2022, 12:58 p.m.
The Employee Provident Fund (EPF) is the unique scheme created by the Government of India to offer the employees with huge payments at the time of relieving from their place of employment. This is a unique initiative where in the part of the salary will get accumulated in the account of the employees during the emergency or proper retirement.
As per the Company Act of 1951, it is mandatory that any employer having more than 20 plus employees is required by the law to register with the Employees Provident Fund Organisation (EPFO).
The contribution towards the EPF is done with the employer and the employees as the employer will deduct the contribution and the employees share of contribution gets accumulated in the Provident Fund account created for that particular employee.
The contribution of the employer is 12% and the employee is also the same.
Registration Process for Employers in EPF
After establishment of the company the employer must give all the employees with facility of the Provident Fund. This brings the credibility to the company and also assist in creating a good image of the organisation and makes employees productive.
Here is the list of information required to register for EPF.
- Name of the Owner.
- Legal details of the company.
- Details of the Owner and Designation.
- Details about the Wages and the Salary.
- Nature of the work done by the corporation.
- Address of the Directors and Associate Partners.
- Employees Details and Strength of the Employees.
- Bank details giving details about the Business Transactions.
- Complete information about the Head Offices of the Company.
New Changes Incorporated for EPF
New Changes has been brought in for the Employee Provident Fund withdrawals and they are given below as follows:
- During the marriage of Son or Daughter or Brother or Sister the amount withdrawn will be 50% of the employees share of the contribution to the Provident Fund.
- Assisting the education of the children, either Son or Daughter, or requiring funds for self-education, the employee can withdraw up to 50% of the employee’s contribution to the Provident Fund.
- Using the money to purchase the land or undertaking the construction of independent house, the asset must be in the name of the employee or his wife or must be held jointly. You can withdraw 50% of the employee’s contribution to the Provident Fund.
- For purchasing the land, the employee can use 24 times the monthly salary plus the Dearness Allowance.
- For construction of the house the employee can use 36 times the monthly salary plus the Dearness Allowance.
- After taking the Home Loan, the repayment of the Home Loan must be done and the property must be registered in the name of employee or his wife or joint property.
- Accumulation of the employees PF account or wife account along with the interest must be more than INR 20000.
- While undertaking the repair of the house, the asset must be registered in the name of the wife or the employee or must be a joint property.
- You can withdraw up to 12 times the monthly salary of the employee.
- The employee can go ahead and withdraw up to a maximum of 90% from both employer and employee’s contribution in the Provident Fund.
- While experiencing the Medical Emergency for the concerned employee and the family members treatment as well. Under this scenario, we will give 6 months basic salary and the Dearness Allowance of the employees share with the interest.
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