PF Full Form

PF Full Form

What is PF?

Employee Provident Fund (EPF) is another name for Provident Fund (PF). All salaried people who retire get financial benefits under the Provident Fund or EPF program. The Employee Provident Fund Organization (EPFO) of India keeps an eye on the PF system. Any organization or business with more than 20 employees is required to register with the EPFO. All salaried workers are thought to benefit greatly from this plan in terms of receiving a lump sum payment upon retirement.

History of PF

The Employee's Provident Fund and Miscellaneous Act, which was passed in 1952, established the EPF or PF (Provident Fund) program. The Employee Provident Fund Organization has established all of the rules and regulations. The Ministry of Labour and Employment oversees the EPFO's operations. In this method, the company will deduct money from the employee's monthly salary. Both the employer and the employee contribute 12 percent of the basic salary to the EPF account as soon as the employee begins working for the company. The D.A (dearness allowance) paid by the employer is also included in this wage.

Important Factors Regarding Provident Fund (PF)

  • The financial year that follows the year in which new interest rates are published, which is defined as April 1 through March 31 of the following year, is valid.
  • Only EPF deposits made in the period of April 2021 through March 2022 will be eligible for the current interest rate of 8.50%.
  • While interest is calculated on a monthly basis, it is only deposited into the EPF account once a year, on March 31st of the relevant fiscal year.
  • A dormant or inactive EPF account is one that has not been used for 36 months in a row.
  • Interest can be earned on accounts that are dormant for workers who haven't yet retired.
  • Deposits made into retired employees' inactive accounts are not subject to interest.
  • Interest accrued on accounts that are not being used is taxed at the member's applicable slab rate.