A monthly return must be filed by all employers who have PF registration. During the working tenure, the employee and the employer both contribute 12 % of the basic salary of the employee into the Employee Pension Fund account by the 15th of each month. The following are the most FAQs to which answers are provided in detail.
- How do I calculate my PF return?
An employer who employs more than 20 employees must deduct 12 % of the employee’s basic salary and dearness allowance and contribute 12% every month to the employee’s EPF account. In addition, these EPF accounts are managed and maintained by the Employees Provident Fund Organization of India (EPFO).
PF returns must also be filed by the 15th next month by all employers who pay PF to the government. These PF returns are known as PF returns.
- When is the due date for PF returns?
The 15th of the following month is the due date for PF returns.
- What is the process for downloading PF challans?
PF challans can be downloaded by following these steps:
1: Go to the website: https://www.epfindia.gov.in/site_en/index.php
2: Select Employer Portal from the menu
3: Enter your Epfo username and password to log in
4: Choose Payments from the menu
5: Choose Payment ECR from the drop-down menu
6: Download the challan by selecting the month
7: Select “Download” from the menu
- How do EPF calculators work?
The EPF calculator is an online tool that allows employees to calculate how much their EPF will be worth when they retire. You will also need to include details such as retirement age, basic monthly salary, salary increases, and contributions to the EPF in order to use the tool. Once this information is collected, the estimated amount of your EPF corpus at retirement is calculated.
- How does employee contribution to PF work?
PF contributions are 12 percent of an employee’s basic salary and dearness allowance.
- What is the process for calculating PF on salary?
PF contributions are calculated as follows: the employer contributes twelve percent (12%) of the basic salary and dear allowance while the employee contributes two percent (2%) of the basic salary and dear allowance.
There is a 3.67 percent contribution to the Employee Provident Fund and an 8.33 percent contribution to the Employee Pension Scheme. However, the whole 12 percent contribution goes to the Employee Provident Fund.
- How does PF Challan work?
In order to pay the total employer and employee contribution online, we need to fill out a challan. After we submit the ECR for a particular month, we need to use the “Prepare challan” option. Afterward, we must pay this automatically generated PF Challan online. PF Challans also contain details about employee and employer contributions. We can download this PF Challan for record purposes after payment.
- What is the online process for checking my EPF account statement?
Members of Employee Provident Fund (EPF) can now access their account statements online through the EPFI website (www.epfindia.gov.in).
In order to make use of this facility, members must be active and presently contributing to the EPF account through their employment.
- Is it possible to make contributions to the EPF in excess of 12% of my salary?
There is no problem with making additional contributions. You can describe the additional contribution as ‘voluntary contribution’ on a tax form as well. However, your employer will not match the additional contribution.
- Which is better, the EPF or the PPF?
There are two types of employee provident funds – Employee Provident Funds (EPFs) and Public Provident Funds (PPFs). They are both long-term investment instruments for retirement. However, there is some confusion between these two types of funds. One cannot come to any conclusion as to one is better than the other, as it would depend upon an individual’s preference and need.
More FAQs on various other EPF related topics, including on how interest on EPF is calculated will be updated in future posts!