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what is a contributory provident fund, an employees provident fund and a General provident fund in india?
Pls tell me the various types of PFs in india and to whom each type of PF is applicable?
- Anonymous9 years agoFavorite Answer
Contributory Provident Fund Rules (India ), 1962: The CPF Rules are applicable to every non-pensionable servant of the Government belonging to any of the services under the control of the President. A subscriber, at the time of joining the Fund is required to make a nomination in the prescribed form conferring on one or more persons the right to receive the amount that may stand to his credit in the Fund in the event of his death, before that amount has become payable or having become payable has not been paid.
A subscriber shall subscribe monthly to the Fund when on duty or foreign service but not during a period of suspension. Rates of subscription shall not be less than 10% of the emoluments and not more than his emoluments. The employer’s contribution at that percentage prescribed by the Government will be credited to the subscriber’s account and this is presently 10%. Rate of interest, at present, is 12% compounded annually. The Rules provide for drawal of advances / withdrawals from the CPF for specific purposes. As in GPF Rules, the CPF Rules also provide for Deposit linked Insurance Revised Scheme.
Earlier, the Government was giving option to CPF subscribers to switch over from CPF Scheme to GPF Scheme (Pension Scheme). The last such option was allowed based on the recommendations of Fourth CPC. As a number of options have already been allowed as and when substantial improvement were made in the pension scheme and the practical difficulties involved in retrieval of records and adjustments to be made, demand for further option was not recommended by the Fifth CPC and there is no proposal with the Government to consider any further change in options.
General Provident Fund (Central Services) Rules 1960: All Temporary Government servants after a continuous service of one year all re-employed pensioners (other than those eligible for admission to the Contributory Provident Fund ) and all permanent government servants are eligible to subscribe to the Fund. A subscriber, at the time of joining the Fund is required to make a nomination, in the prescribed form, conferring on one or more persons the right to receive the amount that may stand to his credit in the Fund in the event of his death, before that amount has become payable or having become payable has not been paid.
A subscriber shall subscribe monthly to the Fund except during the period when he is under suspension. Subscription to Provident Fund are stopped three months prior to the date of superannuation. Rates of subscription shall not be less than 6% of subscriber’s emoluments and not more than his total emoluments. Rate of interest on GPF accumulations at present is 12% compounded annually. The Rules provide for drawal of advances /withdrawals from the Fund for specific purposes.
Employees provident fund Organisation functions under the overall superintendence of the policies framed by the Central Board of Trustees, a tripartite body headed by Union Minister for Labour as Chairman. The Chief Executive Officer of the Organisation is the Central Provident Fund Commissioner, who is also a Member of the Board and its Secretary.Source(s): http://www.providentfundstatus.org/
- Anonymous5 years ago
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The following conditions apply. 1. If you have more than 19 employees then PF registration is a must 2. PF is to be deducted for all employees expect when the basic is more than Rs 6500. 3. However if the basic for the employee was less than Rs 6500 and if you had been deducting PF for this employee then when the basic crossed Rs 6500 due to increment etc then PF is deduct able. 4. If right at the time of joining the basic was more than Rs 6500 then PF is optional. 5. If after registration with PF if your employee strength falls below 19 you still have to pay PF.
- MaureenLv 45 years ago
Provident Fund deduction is a must when a company has 15 or more employees.( on permanet rolls, not contract labour)