Provident Fund Policy

Provident Fund Policy

Statement of Intent

To instil the benefit of savings in its employees ABC has adopted the Provident Fund (PF)
Policy.

Provident Fund Rules & Regulations

 PF Membership is optional for all the confirmed employees.

 On confirmation, Membership Application - Form A (Annexure-N) & Nomination Form
- Form B (Annexure-0) will be filled out by the employee to become a PF Member.
 Decline Form - Form C (Annexure-P) will be filled if an employee voluntarily declines to
join PF. In this case the employee will not be able to become a PF Member during the
course of his employment with the company.
 5% of 2/3rd of total salary shall be deducted from employee's salary and an equal
amount is to be contributed by ABC Education Private Limited.
 Under the new PF policy the deduction for PF contribution will start from salary.
 The total monthly contribution is to be deposited in a saving account maintained at
HBL jointly operated by PF trustees.
 If a member leaves or resigns from the organization before 12 months of PF
membership, he/she is eligible to receive only his/her contribution plus half share
from profit (if applicable).
 If a member leaves or resigns from the organization on or after 12 months of PF
membership, he/she is eligible to receive total contribution and profit (if applicable).
 If a member is dismissed for misconduct during the course of employment, he/she is
eligible to receive only his/her contribution plus half share from profit (if applicable).

 If a member wants to cease his PF membership during the employment, he/she is

eligible to receive only his/her contribution plus half share from profit (if applicable).
 PF Balance will be paid to the employee within 45 days from the last working day with
the company.
 Any income accrued on PF Balance will be paid to the employee within 45 days of the
start of succeeding financial year.
 An employee cannot withdraw the PF Balance during the course of his/her
employment.
 Any PF member can inspect his/her account any time.

Employer’s Contribution
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Membership Length Maximum PF Loan Entitlement

Less than 1 Year No contribution from employer

2nd Year Up to 25% of Employee’s total contribution till the date of separation

3rd Year Up to 50% of Employee’s contribution till the date of separation

4th years or more 100% of the employee’s contribution till the date of separation

Provident Fund Loan

An employee can take loan against his PF Balance as per the following plan.

Entitlement & Pay Back Plan

Membership Maximum PF Loan Adjustment Terms
Length Entitlement

2nd year Up to 50% of Employee’s To be adjusted within 12 months of

PF Balance disbursement

3rd year Up to 60% of Employee’s To be adjusted within 18 months of

PF Balance disbursement

4th years or more Up to 75% of Employee’s To be adjusted within 24 months of

PF Balance disbursement

Terms & Conditions of PF Loan

 To apply for PF Loan again, one year should have been passed since the full
repayment of last PF loan.
 Processing time for the approval of a loan request would be 15 days from the date of
receipt of application.
 Subject to approval, loan shall be advanced either through a ‘Cross Cheque’ in the
name of the employee or by direct transfer into the employee’s bank account.
 The PF loan installment will be deducted directly from salary without allowing any
waiver.
Provident Fund Policy
 Earlier repayment(s) of loan can also be made by the employee.

Approval of PF Loan

All PF loan applications should be made on the PF Trust’s prescribed Provident Fund Loan
Application Form (Annexure-Q) and should be routed through the HR Department. After
vetting the application, HR will forward it to the Provident Fund Trust Chairman for Trustees
approval.

Please make sure, It is clear this will be active prospectively -