1. #1
    Unregistered

    Is mandatory provident fund from company followed by Indian law?

    I really have a doubt in this because I can see some difference in percentage of the mandatory provident fund done by the company side. Do they really follow according to the Indian law? Then on what basis it is?

  2. #2
    ealp Array
    Join Date
    Oct 2012
    Posts
    250

    Re: Is mandatory provident fund from company followed by Indian law?

    It is quite useful and lawful also valid option fora valid company to allow the facility/provision to it's employee as mandatory.A company is bound to deduct employee's salary and to deposit the deducted amount to the employee's provident fund a/c.similarly employer also deposit the same amount to the provident fund this is called cpf i.e contributory provident fund.This is mandatory a valid/lawful company have to provide such facilities to his/her employee.This fund will be available at the time of retirement with interest.

    Thank you,

  3. #3
    Ashok Array
    Join Date
    Jul 2012
    Posts
    2,293

    Re: Is mandatory provident fund from company followed by Indian law?

    Quote Originally Posted by Unregistered View Post
    I really have a doubt in this because I can see some difference in percentage of the mandatory provident fund done by the company side. Do they really follow according to the Indian law? Then on what basis it is?
    Dear Aspirant,

    There is a provident fund Act in India by which the provident fund account is governed.There are regional employees' provident fund organisation office situated in the some of the commissionary town in India.The head is Regional Commissioner,Provedent fund.The accounts of all the employees of the private companies in the concerned region are maintained by the concerned REPFO.

    As per the PF Act,12% of the basic salary of the employees are deducted per month for PF account.The same % of amount of money is contributed by the employer.But only 3.67% of the employer's contribution goes to the pf & the remaining 8.33 % goes to EPS i.e employees pension scheme for which no interest is paid.The interest is paid to the amount of 12.5% of the employees fund & 3.67 % of the employer's contribution.

    The pension per month is paid to the concerned employee who completes minimum ten years of service & then resign from the service or who retires after completion of 58 years of service.

    In the above situation,there is no question of difference in % of the employer's contribution.

    Thanks.

    Ashok

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