PROVIDENT FUND POLICY
This policy is mandatory for all permanent employees and the key points of the policy are here:
Contribution for Provident fund will be equal from both employee and employer on monthly basis and 5% will be deducted from the employee’s basic salary and 5% of the basic salary of the particular person will be contributed from the employer side.
The Maturity Period of the Provident fund is 18 months.
After 12 months of employment, if the employee is resigning and serving a proper notice period, he would be eligible for 100 % of employee contribution and 50% of employer contribution. In case of non-compliance with the employment agreement and not serving a full notice period, the employee will not be able to claim any amount of provident fund.
In case of termination, an employee will not be eligible to claim employer’s contribution at all but only his own contribution.
Resigning before 12 months of employment during permanent employment, the employee will be eligible to claim 50% of the cumulative Provident fund after serving a proper notice period mentioned in the employment agreement.
After the maturity period employee can request a loan that will not be more than 50% of the provident fund, issuance of the loan will be at the sole discretion of Director HR and Accounts Department.
Employee can avail the chance of Provident fund withdrawal, only once in his/her employment period with the company.
On resignation after maturity of Provident Fund, the employee can claim all amounts of provident fund, after clearing all pending loans and serving notice period as per employment agreement.
This policy will be applicable for both new and old employees with the same effect mentioned in the key points.
An employee who joined the company before the 1st of July 2022, the 18-month period will initiate from the 1st of July 2022. whereas, for those who joined after the 1st of July 2022, the 18-month duration will commence from the month in which their first contribution is to be deducted.
After resignation, the provident fund amount would be clear in 45vto 90 days.