What is ob adjustment in pf?

How is interest calculated on Employees' Provident Fund Account Deposits in. If no then visit “Employee Provident Fund (EPF)-Changed rules from. Unlike the PF account number that is generated every time the employee joins a new organisation, UAN is a unique 12 digit number. Unlike the PF account number that is generated every time the employee joins a new organisation, UAN is a unique 12 digit number. Many opt to transfer the balance of their Employees' Provident Fund (EPF) account to their new employer when switching jobs.

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Before proceeding, let us first understand how and in what way EPF contribution will be considered for interest rate calculation. We all know that if BASIC+DA is less than Rs.15,000 (Effective from 1st September 2014) then both employer and employee contribution will be same. If it is more than Rs.15,000 then you have option either to have this investment or opt out of this investment. Below table will give you how your as well as employer contribution will be distributed if your salary is less than or equal to Rs.15,000. Salary for this purpose means Basic+DA.

But if it is more than Rs.15,000 then it depends on the employer decision like how much your employer is also contributing. Below are a few options which usually followed. But do remember that whatever below option your employer may choose but EPS contribution is fixed as 8.33% and other contributions may change according to consideration.

Option 1-Employer may contribute equal to your contribution.

Option 2-Employer may restrict its share to Rs.15,000 only but your share as 12% of salary.

Option 3-Employer may restrict your as well as its contribution to Rs.15,000 only.

Coming back to the interest calculation method on EPF, lot of EPF members not aware that for EPF accounting year starts from March and ends on February but interest will be credited on April every year. EPF interest is yearly compounding but use the method of “Average Monthly Balance” calculation method. Let us take an example that Mr. Ajay joins the company on 1st June of 2012 with a salary (Basic+DA) as Rs.6,500 with no prior EPF balance in this account. I considered the current EPF interest rate of  8.50% for 2012-13. Below is the table which illustrates the calculation method.

The above balance at year end of Rs.9,431 will be considered as a balance for beginning of account year i.e. for March 1st.

A few points to be noted–

A PF statement provides a record of the employee provident fund account holder’s transactions of settlement, advances, transfer-out, and transfer-in across various organisations where that person has worked.

It is a type of online version of the holder’s PF status. Every transaction done as per date and month would be given in a statement or e-passbook. The EPF statement not only offers the updated status of the PF account, but also provides one’s personal details, such as name, phone number, and date of birth.

Here are some important things that are provided in a PF statement:

The EPF statement provides the name and establishment ID along with the address of the establishment. You can also find information such as the name and date of birth of the employee, as well as the date of joining the organisation.

The initial thing to see on an EPF statement is your EPF number. For an un-exempted organisation, the EPF number is an alphanumeric number representing the state, establishment, regional office, and EPF member code. The account number of PF is provided differently for an exempt organisation and is entirely numeric.

UAN, or universal account number, is a unique twelve-digit number that every employee must have. It is not the same as the PF account number that is made whenever the employee goes into a new organization. All PF account numbers, i.e., the IDs of the members, will be linked to the UAN. When changing jobs, provide your UAN number to your new employer, as it helps in the better administration of the PF account.

The PF statement will provide the opening balance under both employer-employee columns. The opening balance displays the entire contributions (employer and employee columns) as well as the interest obtained in the previous fiscal year.

The EPF statement or passbook will provide a detailed break-up of the employer’s and the employee’s per month contribution in rupees. The amount that goes towards the Employees’ Pension Scheme, or EPS, is also provided separately in the statement. Even though both employer and employee contribute twelve percent of their income equally, the contributions are entirely different.

An employee can contribute more than the mandatory 12 percent towards PF, which can be found under the ‘Voluntary Provident Fund’ column. The voluntary contributions of the employees are shown separately. One needs to keep in mind that the employer does not have to match the VPF contribution, and hence it may not show any figure.

The interest obtained on the employer’s and the employee’s contributions is given to the PF account every year. The interest obtained is estimated based on the monthly balances in the account. The EPF statement will provide the interest rate on which the estimation is based, as announced by the government.

Any kind of withdrawal that the employee may have done will also be provided and accounted for consistently.

The closing balance represents the total amount of employee contributions along with the interest earned and the total amount of employer contributions along with the interest earned. These balances will act as the opening balance for the next fiscal year.

The following are ways of checking the PF Statement.

To check EPF statements or balances, the first thing one needs to do is ensure that their employer has enabled their UAN or universal account number.

The UAN, or Universal Account Number, is a unique number for all the employees in the EPF scheme. A UAN number is created by the EPFO or Employee Provident Fund Organization. Every employee must have one UAN number during their service period, irrespective of the organizations they change to.

Once the UAN is enabled, follow these steps:

It is important to merge your KYC details with your UAN number, i.e., details of your PAN, Aadhaar, or bank account. Only then will you be eligible to receive your EPF statement or balance via SMS.

Once your UAN number is merged with your KYC details, you need to follow these steps:

This service is available in Punjabi, Gujarati, English, Hindi, Telugu, Tamil, Marathi, Bengali, Malayalam, and Kannada.

You can also inquire about the EPF balance or statement by simply giving a missed call from your registered mobile number to the authorised phone. This facility is only available if you have your KYC details integrated with your UAN. If you are not able to do this, you can always ask for help from your employer.

Once the KYC details are integrated with your UAN, follow the steps below:

You can check your EPF statement or balance by simply downloading the “m-sewa app of EPFO” on your phone from the Google Play Store.

The system will check your UAN against your mobile number. Once all the information is checked out, you can check your updated PF statement or balance details. In the event of a mismatch or wrong information, it will display an error.

The Provident Fund Registration can offer employees a sense of financial security, which can be a tremendous source of support, safety, and comfort. It is governed by the Employees’ Provident Fund Organization (EPFO), one of India’s most prominent and significant social security organisations.

Every day, they manage enormous volumes of financial transactions. As long as you have a professional to assist you, the procedure for applying for the provident fund is also not a challenging endeavour.

We at Vakilsearch promise that you won’t have to deal with the complicated legal requirements associated with applying for PF. Our professionals accurately fill out the forms and swiftly submit them once we have the necessary data and supporting documentation.