Pro Legal HR Payroll Companies Solution in India by PF ESI Consultant in Ahmedabad. In the EPFO Portal, what is UAN? A unique identifying number known as the Universal Account Number (UAN) is given to each Employees' Provident Fund Organization (EPFO) member in India. It acts as a catch-all for several Member Identification Numbers (Member IDs) that are given to a person by several employers. The UAN simplifies EPF management because it stays the same for the duration of an employee's employment. Through the EPFO web, employees can quickly control withdrawals, check balances, and access their EPF accounts thanks to this unified system that improves accessibility and transparency.
How Is EPF Operational?
These contributions build up over time and are put into bonds, stocks, and government securities, among other financial instruments.
Contributions: Set percentages are made by employers and employees.
Investment: Money is put toward stocks, bonds, and securities.
Withdrawal: Workers may take their corpus back upon retirement or resignation.
Long-term financial planning requires EPF, which is essential.
Stability: Offers monetary security in times of need or retirement.
Pro Legal HR Payroll Companies Solution in India by PF ESI Consultant in Ahmedabad. Programs provided by the Employee's Provident Fund Organization, or EPFO:
Mandatory savings plan for staff members working in EPF-covered firms.
A predetermined portion of the employee's pay is contributed to the fund by the employer and the employee together.
Offers pension benefits to workers when they leave the company.
Contributions that the employer makes on the worker's behalf.
Insurance protection for workers against accidental death or disability.
Advantages connected to the employee's EPF account deposit.
How is the PF on Salary Calculated?
To determine the amount of money to be deposited into the EPF account, the Indian government establishes guidelines. Are you unsure of your PF account number? It is linked to an account where the PF sum is deposited by both employers and employees. Contributions from both the employer and the employee make up each employee's personal retirement account (PF).
Employee EPF Contribution: Workers are required to make a monthly contribution to the PF account equal to 12% of their base pay plus Dearness Allowance. For example, if a working person receives a basic monthly wage of ₹15,000, they will contribute ₹1,800, or 12% of that amount, each month to their EPF account.
The employer contributes 8.33% of the 12% Employees' Pension Scheme and the remaining 3.67% to the Employee Provident Fund (EPF). Hence, ₹ 550 would be 3.67% of ₹ 15,000. Thus, for an employee making ₹ 15,000 per month, the total EPF contribution would be ₹ 2,350.
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