10 Facts That One Must Know About EPF
The following attachment is very useful to understand and implement EPF in your company.
The 10 FACT YOU MAY NOT AWARE OF EPF
We all know what is EPF – Employee Provident Fund. A small part of your salary (12% of your basic salary) is invested in something called EPF and an equal amount is matched by your employer each month. This is what 95% people know about EPF. But there are many things in EPF which a lot of people don‟t know and this article is going to open some not known secrets of EPF. One should be aware about all the EPF related information. So lets take them one by one in points format.
1: You can also nominate someone for your EPF
Do you know that there is also “nomination” facility in EPF. The nominee will be contacted at the time of death of the person and handed over the EPF money. However if nomination is not present (which you should check), it can raise to all sort of issues while claiming money. There is a form called Form 2 which has to be filled to change or update the nomination. Please contact your company finance department or directly send the form to EPFO. One very strange rule as per the Act is that you can‟t nominate your brother for EPF. Not sure why!
2: One can get pension under EPF
Do you know that there are two elements in EPF- one is called EPF and other is EPS. The EPF is actually for your provided fund and EPS is for your pension. The 12% contribution from your side goes to EPF, but the 12% contribution which your employer makes, out of that 8.33% actually goes in EPS (subject to maximum of Rs 541) and the rest goes into EPF. So understand it this way, a part of your employer contribution actually makes up your pension corpus. But there are some caveats to this. PLEASE SEE THE ATTACHMENT.
One is liable for pension only if one has completed the age of 58. One is liable for pension only if he has completed 10 yrs of service (in case of more than one companies, the EPF should have been transferred, not withdrawn) The maximum Pension per month is subject to maximum of Rs 3,250 per month. Lifelong pension is available to the member and upon his death members of the family are entitled for the pension.
One is liable for pension only if one has completed the age of 58. One is liable for pension only if he has completed 10 yrs of service (in case of more than one companies, the EPF should have been transferred, not withdrawn) The maximum Pension per month is subject to maximum of Rs 3,250 per month. Lifelong pension is available to the member and upon his death members of the family are entitled for the pension.
3: No interest is given on EPS (pension part)
You must be thinking that you regularly get compound interest each year on your contribution + employer contribution. But it does not work like that. The compound interest is provided only on EPF part. The EPS part (8.33% out of 12% contribution from your employer or Rs 541 what ever is minimum) does not get any interest. At the time of withdrawal , you get both EPF and EPS.
4: You might not get 100% of your EPF money
Imagine your contribution + employer contribution has been total Rs 3,50,000 till date. Out of this 3,50,000 , suppose 2,50,000 has gone in EPF , and rest 1,00,000 has gone in EPS (for pension) . Now if you quit your job in 6th year of employment and opt for withdrawal of your EPF money (EPF + EPS actually) , then do you think you will get total 3,50,000 . NO !
Thats because you always get 100% of your EPF part, but for EPS there is separate rule . There is something called Table „D‟ , under which its mentioned how much you get at the time of exit from your job, there is a slab for each completed year and you get n times of your last drawn salary (depending on the completed year of service) subject to maximum to Rs 6,500 per month. So if your salary in this case was Rs 30,000 per month, still you will be given only 6,500 * 6.40 = Rs 41,600.
Note that the table D is upto 9 yrs only, because if 10 yrs are crossed, then you are liable for pension.
Thats because you always get 100% of your EPF part, but for EPS there is separate rule . There is something called Table „D‟ , under which its mentioned how much you get at the time of exit from your job, there is a slab for each completed year and you get n times of your last drawn salary (depending on the completed year of service) subject to maximum to Rs 6,500 per month. So if your salary in this case was Rs 30,000 per month, still you will be given only 6,500 * 6.40 = Rs 41,600.
Note that the table D is upto 9 yrs only, because if 10 yrs are crossed, then you are liable for pension.
5: You can invest more in EPF, its called VPF
You can always invest more than 12% of your basic salary in EPF which is called VPF. In this case the excess amount will be invested in EPF and you will keep on getting the interest, but the employer is not suppose to match your contribution. He will just invest upto maximum of 12% of your basic, not more than that.
6: Withdrawing of EPF amount at job change is illegal
Almost every one thinks that withdrawing of your EPF amount after a job switch is totally fine and allowed, however as per law, it‟s illegal. You can only withdraw your EPF money only if you have no job at the time of withdrawing EPF and if 2 months have passed. Only transfer is allowed in case you get a new job and you switch to it. While there are no cases where EPF office tracks these things and takes up this matter, still just for your information you should know that if you got a new job and took it and then you are applying for withdrawal, its illegal as per law. However in
case of EPS, if the service period is less than 10 years, you‟ve option to either withdraw your corpus or get it transferred by obtaining a „Scheme Certificate‟. Once, the service period crosses 10 years, the withdrawal option ceases.
case of EPS, if the service period is less than 10 years, you‟ve option to either withdraw your corpus or get it transferred by obtaining a „Scheme Certificate‟. Once, the service period crosses 10 years, the withdrawal option ceases.
7: One can opt out of EPF if he wants
Yes! It might be a surprising fact for many , but if one‟s basic salary per month is more than Rs 6,500, he has an option to opt out of EPF and not be part of it. In which case he will get all his salary in hand (without anything deducted every month). But the sad part is that one has to opt out of EPF in the start of his job. If a person has been part of EPF even once in his life, then he cant opt out of it. So if you have already had EPF in your life. This option is not for you, but if you are new to job and your EPF account number still does not exist, you can tell your employer that you don‟t want to be part of EPF . You will have to fill up form 11 for this.
8: Your EPF gives you some life insurance too
A lot of people might not know that in case a company is not providing group life insurance cover to its employees, in that case the employee is given a small life cover through EPF. This is because there is something called Employees‟ Deposit Linked Insurance (EDLI) scheme and your organisation has to contribute 0.5% of your monthly basic pay, capped at Rs 6,500, as premium for your life cover. However companies which already have life insurance benefits to employees as part of the company, are exempted from this EDLI scheme. The bad part of this EDLI scheme is that the life cover under this option is very low and that‟s maximum amount of Rs. 60,000. While this is peanuts for most of the people in big cities. For employees in small scale industries and small cities, this amount of Rs 60,000 will still count something.
9: You can use EPF money can be withdrawn at special occasions
So now you know that EPF withdrawal is not permitted if you are still working. But there are occasions when EPF withdrawal is allowed. While you cannot withdraw it fully, you can withdraw a partial amount. Following is a list of events when you can withdraw the EPF amount and the conditions you need to fulfill:-
1. Marriage or education of self, children or siblings
– You should have completed a minimum of seven years of service. – The maximum amount you can draw is 50% of your contribution – You can avail of it three times in your working life. – You will have to submit the wedding invite or a certified copy of the fee payable.
2. Medical treatment for Self or family (spouse, children, dependent parents)
– For major surgical operations or for TB, leprosy, paralysis, cancer, mental or heart ailments – The maximum amount you can draw is 6 times your salary – You must show proof of hospitalization for one month or more with leave certificate for that period from your employer.
3. Repay a housing loan for a house in the name of self, spouse or owned jointly
– You should have completed at least 10 years of service. – You are eligible to withdraw an amount that is up to 36 times your wages.
4. Alterations/repairs to an existing home for house in the name of self, spouse or jointly
– You need a minimum service of five years (10 years for repairs) after the house was built/bought. – You can draw up to 12 times the wages, only once.
5. Construction or purchase of house or flat/site or plot for self or spouse or joint ownership
– You should have completed at least five years of service. – The maximum amount you can avail of is 36 times your wages. To buy a site or plot, the amount is 24 times your salary. – Can be avail of it just once during the entire service.
10: You can file an RTI application for EPF issues
Did you know that you can file an RTI applicable to get any kind of information regarding your EPF. You can file it if you are facing issues like no clarity about balance in your EPF, no action taken for your EPF withdrawal or transfer. To find out information about other issues on EPF. I have done a detailed post on how to file an RTI for your EPF issue.
Innovative Model to Calculate Return on Training Investment
I have Attached Innovative Model to Calculate Return on Training Investment
Publication: The Economic Times Mumbai;Date: Jul 3, 2012;Section: Career & Business;Page: 8
Most Companies Lack Adequate Diet of ROTI
Research indicates that the ‘transfer of learning’ from management and executive training programmes to the workplace hovers in
the pitiful range of 10-30%. Even so, the amount of resources in time and money invested in such training continues to grow. This
begs the question: are organisations addressing the issue of Return on Training Investment (ROTI) adequately? If not, why not?
Why are training investments not assessed for accountability and returns, as other investments? This question is particularly
timely for organisations in India. The market for management and executive training in India is primed for explosive growth,
propelled by the arrival of topranked institutions such as Harvard, Duke, and Wharton. Indian organisations will soon be blitzed
with marketing efforts from these top-ranked providers of executive training, and we can expect to see increasing numbers of
Indian managers and executives receiving premium-priced training from these and other institutes. The key question: Will
organisations attempt to address the issue of ROTI from these programmes? Most probably, they will not, offering the stock
argument that ROTI is a complex and nebulous idea, and that they don’t have the capability to do so. This argument has only
limited merit; even if organisations don’t have the capability to measure ROTI comprehensively, some of the steps involved could
be assessed, providing insights into the value of training programmes.
ROTI: STEPS INVOLVED
It is important to recognise that the end goal of a typical training programme is not simply learning, but rather, the application of
learning in the workplace. To understand why some managers successfully “act” on their learning after attending a programme
and why others don’t, organisations must appreciate that a training programme is part of a process, rather than a discrete event.
This process includes at least two steps before the training programme: Recognition (recognition of the need for training),
Matching (matching the right managers to the right programme), and at least three steps after the training programme:
Application (application of the learning in the workplace), Impact (assessment of the impact made by the application of the
learning), and Return (measurement of ROI based on impact to the organisation, taking into consideration all relevant costs.) The
pre-programme steps are not necessarily complex and can typically be achieved by currently available expertise in most
organisations through their HR or other relevant departments. The post-programme steps of ROTI are more involved. First, they
require managers to return from training programmes with clear “action plans” that include a schedule for applying one or more
aspects of the learning. Second, organisations need to ensure that they have access to the expertise needed to help assess
application of the learning in the workplace, and evaluate its impact so that ROTI can be addressed. For organisations that have
never addressed ROTI, enforcing all the steps could be difficult initially. However, at the very least, both pre-programme steps can
be enforced, and the first post-programme step can be checked. Most important, data collected on the first two pre-programme
steps can be tied to managers’ successful (or not so successful) application of learning in the workplace, and help shed light on
why the application of learning may vary across managers. These efforts can lay the foundation to ultimately address ROTI, and
ensure training—like other investments—is also subjected to scrutiny, and is assessed for accountability and returns.
Most Companies Lack Adequate Diet of ROTI
Research indicates that the ‘transfer of learning’ from management and executive training programmes to the workplace hovers in
the pitiful range of 10-30%. Even so, the amount of resources in time and money invested in such training continues to grow. This
begs the question: are organisations addressing the issue of Return on Training Investment (ROTI) adequately? If not, why not?
Why are training investments not assessed for accountability and returns, as other investments? This question is particularly
timely for organisations in India. The market for management and executive training in India is primed for explosive growth,
propelled by the arrival of topranked institutions such as Harvard, Duke, and Wharton. Indian organisations will soon be blitzed
with marketing efforts from these top-ranked providers of executive training, and we can expect to see increasing numbers of
Indian managers and executives receiving premium-priced training from these and other institutes. The key question: Will
organisations attempt to address the issue of ROTI from these programmes? Most probably, they will not, offering the stock
argument that ROTI is a complex and nebulous idea, and that they don’t have the capability to do so. This argument has only
limited merit; even if organisations don’t have the capability to measure ROTI comprehensively, some of the steps involved could
be assessed, providing insights into the value of training programmes.
ROTI: STEPS INVOLVED
It is important to recognise that the end goal of a typical training programme is not simply learning, but rather, the application of
learning in the workplace. To understand why some managers successfully “act” on their learning after attending a programme
and why others don’t, organisations must appreciate that a training programme is part of a process, rather than a discrete event.
This process includes at least two steps before the training programme: Recognition (recognition of the need for training),
Matching (matching the right managers to the right programme), and at least three steps after the training programme:
Application (application of the learning in the workplace), Impact (assessment of the impact made by the application of the
learning), and Return (measurement of ROI based on impact to the organisation, taking into consideration all relevant costs.) The
pre-programme steps are not necessarily complex and can typically be achieved by currently available expertise in most
organisations through their HR or other relevant departments. The post-programme steps of ROTI are more involved. First, they
require managers to return from training programmes with clear “action plans” that include a schedule for applying one or more
aspects of the learning. Second, organisations need to ensure that they have access to the expertise needed to help assess
application of the learning in the workplace, and evaluate its impact so that ROTI can be addressed. For organisations that have
never addressed ROTI, enforcing all the steps could be difficult initially. However, at the very least, both pre-programme steps can
be enforced, and the first post-programme step can be checked. Most important, data collected on the first two pre-programme
steps can be tied to managers’ successful (or not so successful) application of learning in the workplace, and help shed light on
why the application of learning may vary across managers. These efforts can lay the foundation to ultimately address ROTI, and
ensure training—like other investments—is also subjected to scrutiny, and is assessed for accountability and returns.
Categories: HR Tags: Calculate, Innovative, Investment, Model, on, Return, to, Training
Registers to be Maintained
I am attaching here with the list of registers which are maintain under various act.
| REGISTERS TO BE MAINTAINED | |||||||
| UNDER FACTORIES ACT,1948 | CONTRACT LABOUR (R&A)ACT,1970 | ||||||
| 1. Register of Adult Workers. | Register in FormXIII | ||||||
| 2. Register of Leave with Wages. | PAYMENT OF WAGES ACT ,1936 | ||||||
| 3. Accident Register with Forms | Register of Wages, Fines, Deductions and Advances | ||||||
| 4. Muster Roll and Wages Register | MINIMUM WAGES ACT,1948 | ||||||
| 5. Inspection Book | Wages Slip | ||||||
| 6. Register of Compensatory Holidays and Over Time | EMPLOYEES STATE INSURANCE ACT,1948 | ||||||
| 7. Muster Roll for Exempted Workers | Register of Employees Contribution | ||||||
| PAYMENT OF BONUS ACT,1965 | Accident Register | ||||||
| A,B&C Register | Inspection Book | ||||||
| EQUAL REMUNERATION ACT ,1976 | EMPLOYEES PROVIDENT FUND &M.P. ACT ,1952 | ||||||
| Form D Register | Eligibility Register | ||||||
| Inspection Book | |||||||
Categories: HR Tags: be, Maintained, Registers, to
Invitation Letter to Participant in Training Programme
I have attached invitation letter to Participant in training programme.
Sub: Seminar on________(TRAINING PROGRAMMES)
We are in receipt of an invitation from ____________ wherein they have invited us to attend ________programmes. The details are as under:
1. Subject matter:
2. Day, date,
time and venue:
3. Fees:
We may if approved, send the following to attend the same:
_______________________(employees)
_______________________
Submitted please.
MGR HR
COO for approval please
Click Here To Download Invitation letter to Participant in Training Programme
Categories: HR Tags: In, Invitation, Letter, Participant, to, Training Programme
Employee Documents Joining to Leaving
Attached please find complete list of documents required at the time new joiner to reliving of employee. These documents might be differ according to company policies.
Employee Documents
(Joining to Leaving)
Employee File Contain(at the time of joining):-
1. Personal Information form
2. Copy Of updated CV
3. copy of offer letter
4. copy of appointment letter
5. welcome letter
6. Confirmation Letter
7. interview assessment sheet
8. Education certificate (SSC, HSC/ Diploma, Degree)
9. experience certificate
10. Salary certificate
11. Employee joining report
12. PAN Number Copy
13. Passport Copy (if Any)
14. Physical Fitness Certificate
15. Photo Id proof
16. Salary Slip of current employment
17. PF Forms
18. ESI form
19. Employee Superannuation Form
20. Employee Group Gratuity Form
21. Group Medical Insurance Policy Proposal Form for Employees
22. Life Insurance Beneficiary Form
23. Form 12B – Form for furnishing details of income under section 192(2) {Salary Declaration}
24. Code of Conduct for Prevention of Insider Trading
25. Declaration/ Undertaking
26. Declaration of Dependents
27. Photographs
28. Copy of employee ID card ( ID number )
29. Detail of family members
30. Nominee detail ( for PF,ESI, Gratuity etc amount )
31. Mail Communication print outs
32. Copy of Employee Agreement/Employment letter
33. Declaration to be bound by staff rules
34. Declaration of fidelity and secrecy
35. Salary Slips of last three months from previous employer
36. Reliving / Resignation Letter
37. Contact Details incase of emergency
38. Employment Application along with attested photograph
39. Form I-9 ( Employee eligibility verification )
Documents given to the employee once they have joined the organization (not attached in the employee file) :-
1. The company’s vision & mission statement
2. The Policy manual
3. Their Job profile
4. HR manual containing some general policies regarding leave, reimbursement rules
5. A Directory or Sheet containing imp. Telephone nos. & ext. nos.
6. Organizational Structure
7. HR Policies
8. List of special welfare policies
9. Employee events planned for the quarter
10. Office layout to cafeteria & restrooms and other important areas.
11. Company’s Do’s and Dont’s
12. Their Annual Action Plan -to be submitted back after a month –LPG
13. Copy of all the Code of Conduct Forms.
14. List of Holidays
Documents to be maintained during the cycle of employment ( Keep updating Documents time to time ) :-
- Appraisal Forms
- Performance Related Pay / Bonus Letter
- Promotion Letter
- Copy of any certificate/degree get after joining an organization
- Attested copy of any change in address, contact detail etc
- Record of Leave
- Attendance record
- List of project/task performing
- Maternity Detail
- Any up gradation either from employee or employer side
- Check list ( should be filled during first 2 weeks and then after 3 months)
Documents to be required at time of reliving :-
1. Noticed period (15/30 days)
2. Clearance Certificate (no dues certificate )
3. Exit interview Form
4. Reliving & Experience letter
5. Retirement detail
6. List of Forms :-
a. Transfer of PF ( Form 13 )
b. Refund of PF ( Form 19 )
c. Refund of Pension ( Form 10C )
d. Monthly Pension ( Form 10D )
e. Claim for Gratuity ( Form I )
7. Superannuation ( Transfer of employee’s fund, claim for pension
8. In case death HR concerned will be claimed to following forms duly filed by legal heirs :
a. Provident fund
b. Employee Pension Scheme
c. Gratuity
d. Superannuation
e. EDLI
f. Group Term Insurance
g. Group Term Insurance under GIGS
Note :- above mentioned documents/forms might be differ according to company policies.
Click Here To Download Employee Documents Joining to Leaving
Search Sample Formats:
Journal to Balance Sheet in Excel
Useful for Accounting people to explore the wonders of excel formulas.
| Date | Debit particulars (DR.) |
Credit particulars (CR.) |
L.F. | Debit-Rs. | Credit-Rs | Narration | 
|
2 | Enter Ledger account name | |||||||||
| JOURNAL ENTRIES | Date | Debit particulars (DR.) |
Credit particulars (CR.) |
Folio | Debit-Rs. | Credit-Rs | Balance-Rs. | Narration | ||||||||||
| cash A/c | capital A/c | 50000 | 50000 | capital introduce in the business | furniture A/c | Bank A/c | 0 | 10000 | 10000 | furniture purchased against cheque | ||||||||
| Bank A/c | cash A/c | 35000 | 35000 | opened bank account | depreciation A/c | furniture A/c | 0 | 200 | 9800 | depreciate furniture@2% | ||||||||
| Purchases A/c | ajay A/c | 20000 | 20000 | goods purchased on credit | 9800 | |||||||||||||
| vijay A/c | Sales A/c | 14000 | 14000 | sold good on credit | 9800 | |||||||||||||
| ajay A/c | Bank A/c | 19500 | 19500 | paid ajay in full settlement | 9800 | |||||||||||||
| ajay A/c | Discount A/c | 500 | 500 | paid ajay in full settlement | 9800 | |||||||||||||
| Bank A/c | vijay A/c | 13000 | 13000 | received in full settlement | 9800 | |||||||||||||
| Discount A/c | vijay A/c | 1000 | 1000 | received in full settlement | 9800 | |||||||||||||
| furniture A/c | Bank A/c | 10000 | 10000 | furniture purchased against cheque | 9800 | |||||||||||||
| Travelling & conveyance expenses A/c | cash A/c | 3000 | 3000 | paid for travelling expenses | 9800 | |||||||||||||
| cash A/c | Sales A/c | 10000 | 10000 | sold goods for cash | 9800 | |||||||||||||
| Purchases A/c | cash A/c | 8000 | 8000 | goods purchased for cash | 9800 | |||||||||||||
| Bank A/c | cash A/c | 5000 | 5000 | cash deposited in bank | 9800 | |||||||||||||
| capital A/c | Bank A/c | 3000 | 3000 | withdrawn for personal use | 9800 | |||||||||||||
| salary A/c | cash A/c | 2000 | 2000 | paid salary in cash | 9800 | |||||||||||||
| telephone expenses A/c | outstanding expenses A/c | 1500 | 1500 | telephone expenses were unpaid | 9800 | |||||||||||||
| depreciation A/c | furniture A/c | 200 | 200 | depreciate furniture@2% | 9800 | |||||||||||||
| 9800 | ||||||||||||||||||