Dear all,
i had an interview in a reputed company, the HR manager asked me a question related to PF.....the question is why there is a 12% contribution from employee side and employer side....why not 10% from employer side or employee side..
Plz give me the exact reason.......
with regards
Paras Thakur
From United States, Ashburn
2i had an interview in a reputed company, the HR manager asked me a question related to PF.....the question is why there is a 12% contribution from employee side and employer side....why not 10% from employer side or employee side..
Plz give me the exact reason.......
with regards
Paras Thakur
From United States, Ashburn
Dear Paras,
Employee 12%
Employer 13.61%
Contribution:
3.67% = Provident Fund (A/c No.1)
8.33% = Pension Fund (A/c No.10)
0.5% = EDLIS -Employees Direct Linked Insurance Scheme (A/c No.21)
Administrative Charges:
1.10% of emoluments = Provident Fund (A/c No.2)
0.01% of emoluments = EDLIS (A/c No.22)
Total 25.61%
From India, New Delhi
Employee 12%
Employer 13.61%
Contribution:
3.67% = Provident Fund (A/c No.1)
8.33% = Pension Fund (A/c No.10)
0.5% = EDLIS -Employees Direct Linked Insurance Scheme (A/c No.21)
Administrative Charges:
1.10% of emoluments = Provident Fund (A/c No.2)
0.01% of emoluments = EDLIS (A/c No.22)
Total 25.61%
From India, New Delhi
Dear Sir i know these contribution as u have written but question is not related to contribution but it is related to the reason behind of fixation of 12%. Plz kindly let me know.... Regards paras
From United States, Ashburn
From United States, Ashburn
The answer is ,12% is decided by the govt.It can increase it or decrease it. Varghese Mathew 9961266966
From India, Thiruvananthapuram
From India, Thiruvananthapuram
The EPF scheme was originally envisaged as a savings plan which would be useful for the workforce at the time of their retirement period, since there was no other facility like postal savings, LIC or Banking, were existing at that time and most of the employees were not educated to keep savings. It was thought that out of one year's earnings one should provide a month's wages as savings for his old age (i.e., 8.33 %) Then the percentage was subsequently increased to 12 % in stages. Various ILO conventions have also influenced in this regard. Full details can be understood on reading Trade Union movement in pre-independence period and the preambles of various welfare oriented acts enacted at that time.
M.Venkatraghavan
From India, Selam
M.Venkatraghavan
From India, Selam
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf