The Provident Fund Act-1952

• Objective- PF Act came into force in 1952, in order to secure the life of an employee for rendering his service to organization. This is statutory liability of employer to give PF amount to employee.
• Applicability- This act is applicable to an establishment where 20 or more people are employed. It is applicable to all states of India except J&K.
• Benefits- Following are benefits avail due to PF Act:
• Provide monetary benefits to survive after retirement.
• Minimize risk against health, sickness, disablement of the employee and his dependents.
• Old age Pension benefits.
• Widow pension.
• To maintain dignity & Social status.
• Contribution- Employees and Employer both contribute to Provident fund in the following way:
• Employee’s Contribution- 12% [(EPF) 3.67%, (Pension) 8.33% or 540 whichever is less]
• Employer’s Contribution- 13.61% [3.67% (EPF), 8.33% (Pension), 1.1% (Admin Charges), 0.5% (EDLI), 0.01% (Inspection charges)]

• A/c 1 = Employer and Employee’s part of PF
• A/c 2 = Admin Charges
• A/c 10 = Pension Part
• A/c 21 = EDLI (Employee Deposit Linked Insurance)
• A/c 22 = Admin Charges on EDLI (Inspection Charges)

• PF Challan- PF Challan is submitted every 15^th of the month in SBI Branch. Yearly Challan is also submitted in the month of April. Above is the sample copy of Challan.

• Forms used in PF Returns- Following are forms used in Filing PF Return:
• Form 5- To submit monthly PF return in which new employee details is mentioned
• Form 10- To submit monthly PF return in which Left employee details is mentioned.
• Form 12A- That is used for the same purpose which contains consolidated details of that particular month- new joinees, left employees and employer-employee PF contributions.
• Form 3A- Used for annual PF Returns.
• PF Calculation- PF (EDLI and charges not included) can be calculated in the following way:
• Employee’s Part- Basic Salary * 12%
• Employer’s Part- (Basic Salary* 3.67%) + (Basic Salary * 8.33% or 540)

• Note- Maximum limit for the calculation of Monthly Penssionable salary is Rs. 6500 (see above figure for details)