Full Form of PF, Definition, History, Eligibility, Key Goals

What is PF?

The Provident Fund is referred to as PF. Another name for a Provident Fund is Employee Provident Fund (EPF) (PF). The Provident Fund or EPF scheme will provide financial benefits to all retired salaried individuals. The PF system is monitored by the Employee Provident Fund Organization (EPFO) of India.

Every company or group with more than 20 employees must register with the EPFO. In terms of getting a lump sum payment upon retirement, it is believed that this plan offers significant benefits to all salaried employees.

As part of the PF procedure, a predetermined amount is deducted from an employee's monthly paychecks and paid into their EPF account. Employees receive the money saved up within their Employee Provident Fund accounts after retiring.

History of Provident Fund (PF)

The 1925 passage of the first Provident Fund Act, which regulated the provident funds among some private businesses, had a narrow focus. The Royal Commission on Labour emphasized the importance of establishing provident funds for industrial workers in 1929.

A legislative provident fund for industrial workers should be implemented, it was generally accepted at the 1948 Indian Labour Conference. In 1948, the Coal Mines Provident Fund Scheme was established. Due to this fund's success, there is now desire for its growth into more industries.

The Employees' Provident Funds Scheme, created in accordance with section 5 of the Act, was implemented gradually and fully effective by 1 November 1952. The Act had an impact on the industries of cement, cigarettes, electricity, mechanical as well as engineering items, iron,  paper, steel, and textiles.

The Central Board of Trustees, which is made up of members of the federal, state, and local governments, employers, and employees, is responsible for enforcing the Acts and Schemes created under it.

Key Goals of PF 

The following is a list of the key goals of the EPFO:

• Reduce the 30-day window for dispute resolution to three days.
• Delivering a trouble-free service to clients via EPFO stations.
• Verify that practically all institutions under regulation are following the law's standards.
• Encouragement and a directive to follow up on a voluntary basis.
• Monthly updates are made to member profiles.
• Internet accessibility to a person's profile.

Eligibility for PF

• Every company that employs 20 people or more is required by law to register with the EPF.
• Every salaried worker who makes less than Rs. 15000 every month is obligated to enroll for the programme.
• Companies with fewer than 20 staff may voluntarily sign up for the programme as well.
• With the approval of his company as well as the Assistant PF Commissioner, an employee who earns more than Rs. 15000 per month may voluntarily enroll himself in the programme.
• The maximum age at which contributions to the EPF could be made is 58 years old, while the maximum age at which pension payments can be made is 60 years old.

How to Check Online PF Transfer 

An employee can easily transfer their provident fund (EPF) balance from their prior company to their new employer using an online transfer tool. Either of the employee's employers can certify his transfer claim. The EPFO does permit fund transfers in accordance with specific protocols.

In the past, Form 13 had to be completed, signed by the prior employer, and delivered to a new employer. There were problems with misplaced forms or following up with both firms' human resources. Many problems involving unclaimed funds in the EPF were clarified.

There is a new Form 13 that can be sent to either new or former employers. In the event that the new employer is indeed a trust, which makes it exempt.

[wp-faq-schema title=" Full Form of PF FAQs" accordion=1]