Provident Fund Status
Provident Fund Status that is being looked after in most of the cases by Employee’s Provident Fund (EPF) organization was established in the year 1952. The Employee’s Provident Fund (EPF) Act along with the Miscellaneous Provisions (MP) Act was established in the same year 1952 and fuelled the formation of EPF. The schemes of provident fund can be joined by an employee only after getting the consent of the employer. Having received the employer’s consent, if an employee earns more than a fixed minimal value, he or she is eligible for the provident fund schemes.
The basic rate of fund payment by an employee depends on this basic salary. Again, the employee can specify if he wants higher amount of money to be excluded for provident fund from his salary. This money does not fall under tax payment and hence can be extremely beneficial for the employees. During later part of their job, the money of provident fund is used for the beneficial activities of the employee.
Provident Fund Status of an employee is directly related to the maximum amount of loan an employee can take from the employee’s provident fund organization, popularly known as EPF organization. Each employee can withdraw a major part of his or her money saved as provident fund before retirement. The remaining money is received after retirement and can be further used for sustaining the post retirement phase of an employee. The phenomenon when an employ quits his or her job or shifts it, then the calculations for the provident fund or PF depends on the scheme one had applied for during the time of joining.
While mentioning the specific details about one’s self in the provident fund scheme, the nomination for one’s heir is the most important. Provident Fund Status requires each employee to specify who shall get all of his or her monetary property from the provident fund in case of his absence through death. In case of severe physical disability, the nominee of the employee can withdraw specific amounts of money after filling up all the legal forms regarding this matter. The nominee has to produce valid papers and proofs to testify the physical disability of any particular employee to get access to his or her account.
The EPF balance calculations need special techniques. Many online web sites have come into existence that can calculate the Employee’s Provident Fund balance, that is, the EPF balance. One has to specify about the rate of tax, basic payment scale and allotted DA to the specific fields of the provident fund balance calculating sites. The database of the web site is immediately consulted to get the exact balance.
All companies generally provide the employee provident fund number or PF number to the employees. This number when given as input to most of the employee’s provident fund calculating site, the regional database stored in the memory efficiently provides the PF balance calculations. Provident Fund Status specifies that all the family members of the employee will get equal share PF money if proper nominee is not specified before untimely death.