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India Provident Fund

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In a nutshell, this is what you need to know: Remote has enrolled with the Employees' Provident Fund Organisation (EPFO) in India. As a result, we are required to deduct a portion of all Indian employees’ salaries for the Employees’ Provident Fund (EPF), and we are also required as your employer, to match that amount for contribution to the EPF. Therefore, Remote will automatically deduct 12% of an Indian employee's basic salary each month, and Remote will equally make a 12% contribution based on the employee's basic salary to the EPF

What is the Employees' Provident Fund (EPF)?

The EPF is a government-managed retirement savings scheme used in India and is managed by the Employees' Provident Fund Organisation (EPFO). In this scheme, employees are typically required to contribute 12% of their salary to the fund each month and their employer is typically required to match and contribute the same amount.*

The EPF came into existence with the creation of the Employees' Provident Funds Ordinance in 1951 and was replaced by the Employees' Provident Funds Act in 1952. The Employees' Provident Funds Act is now referred to as the Employees' Provident Funds & Miscellaneous Provisions Act of 1952 which extends to the whole of India.

*Some exceptions to the amount and requirements may apply.

Is it mandatory for employees to enroll in the EPF?

It depends on the situation. If the employee has contributed to the EPF at any point in their career, then yes it mandatory to contribute. If the employee has never contributed to the EPF before, then the employee is able to opt out from contributing EPF by filling out a Form 11 Declaration and presenting a letter to their employer stating that they wish to opt out of the provident fund scheme.

How does the 12% deduction for the employee EPF contribution happen?

The contribution will happen on a monthly basis. This means Remote will automatically deduct 12% of the employee's basic salary each month.

Can an employee make the 12% contribution to the EPF personally, in lieu of an automatic payslip deduction?

No. Remote is registered with the EPF and must facilitate the 12% contribution on behalf of the employee (and the matched contribution for the employer itself) in order to maintain compliance with local labor laws.

Can an employee contribute more than 12% of their basic salary towards the EPF?

Yes, an employee can contribute more than 12% of their basic salary if they wish to do so by adding funds to their EPF account directly. As an employer, Remote is only required to contribute 12% of the employee's basic salary to the scheme and is under no obligation to match additional employee contributions.

If an employee already has an EPF account from previous employment, are they required to transfer their funds to Remote or create a new account?

No. If an employee already has an EPF account and joins Remote, they are not required to transfer their existing EPF to Remote or create a new EPF account. Any contributions made through Remote will be automatically deposited into the employee's existing account via the employee’s Universal Account Number.

If an employee already has an EPF account from previous employment, does this mean the old employer maintains the account?

No. The an EPF is never held by an employer. It is always held by the government (provident fund department) who manages that fund. An employer only facilitates contributions to the EPF on behalf of the employee and the employer itself. Furthermore, once an employee resigns from an organization, the employer will note the employee's exit from the organization on the provident fund portal.

I have more questions. Who should I contact?

If you have additional questions, please reach out to us at help@remote.com.