Shampan PF & GF: Empowering Smart Financial Safeguards with Automated Precision

Introduction to PF & GF

Provident Fund (PF) is a structured savings scheme set up by employers and employees alike. Both contribute a specified percentage of the employee’s wage into this fund. It serves as a secure financial buffer for employees during retirement, extended leave, or unforeseen circumstances. 

Gratuity Fund (GF), on the other hand, is a reward for long-term service. It’s calculated based on the employee’s tenure and final salary. Although the Bangladesh Labor Act, 2006, defines gratuity as part of wages under Section 2(10), it is not mandatory in the private sector. Still, many organizations establish GF to show appreciation for loyal service. 

Shampan PF & GF Module: 

Integrated into the broader Shampan HRM & Payroll system, Shampan PF & GF offers a robust, compliant, and user-friendly solution catered to both private and government sectors. Key capabilities include:

• Comprehensive tracking of PF and GF balances for each employee
  
• Investment and profit management, accurate profit computation, and distribution
  
• Loan handling with structured repayment plans
  
• One-click final settlements
  
• Gratuity accumulation begins from the first day of employment
  
• Highly customizable reporting, including one-off report design as per client needs
  

Features: 

Provident Fund (PF) Features

1. Member Self-Service Portal
   Employees can view their PF status, contributions, balance, and profit at any time via their portal.
   
2. Automated PF Statement Generation
   Generates detailed PF statements showing contributions, interest, and balances.
   
3. Investment Records & Profit Allocation
   Keeps an audit-ready record of all fund investments and the associated yields for transparent accountability.
   
4. Profit Distribution Automation
   Profits from investments are calculated and credited automatically to individual member accounts, eliminating manual errors.
   
5. PF Loan Management
   Tracks active loans against PF, consolidating payment schedules and dues. Offers reschedulability with recalculated terms.
   
6. Full Settlement Module
   On exit or maturity, the system allows quick and accurate settlement of PF balances, including nominee payouts.
   
7. Core Financial Integration
   Seamlessly integrates with the organization’s core financial systems for coherent accounting and auditing.
   

Gratuity Fund (GF) Features

1. GF Rules Setup
   Administrators can define gratuity calculation rules based on company policy and legal requirements.
   
2. Employee Info Import
   Bulk import functionality allows fast onboarding of employee PF/GF data. 
3. Gratuity Statements
   Generates employee-wise, monthly, and comprehensive GF statements.
   
4. Withdrawals & Settlements
   Enables fund withdrawal or settlement for retiring/exiting employees with systematic processing.
   
5. Investment Activities & Encashments
   Tracks specific investments under GF and manages encashment entries.
6. Closed Member Records
   Maintains a history of members who have left or settled GF, aiding regulatory audits and transparency.
   
7. Financial Module Integration
   GF operations are synced with core accounting ledgers for unified financial visibility.
   

Reporting Capabilities

PF Reports:

• PF Contribution Statement
  
• Individual PF Statements & Certificates
  
• PF Settlement Application Forms
  
• Loan & Loan Statement Reports
  
• Interest Allocation, Investment, Profit Distribution Statements
  
• PF Voucher Statements, Members Ledger, Trial Balance
  
• Custom Report Generation Facility
  

GF Reports:

• Gratuity Employee Statement
  
• Monthly & Comprehensive GF Statements
  
• Settlement & Forfeiture Reports
  
• Investment & Sector-wise Reports
  
• Voucher Statements, Member Ledgers, Trial Balances
  
• Custom Report Tool
  

Benefits of Shampan PF & GF

• Employee Empowerment: Real-time self-service access builds trust and reduces HR inquiries.
  
• Precision & Trust: Automated profit allocation, loan recalculations, and settlements minimize errors.
  
• Regulatory Compliance: Designed to support Bangladesh’s labor laws and PF/GF norms.
  
• Operational Efficiency: One-click settlement accelerates fund processing at exit or retirement.
  
• Financial Cohesion: Integration with accounting systems ensures financial consistency across modules.
  
• Custom Reporting: Management gains actionable insights through tailored reports.
  
• Scalability: Adaptable to any organization’s size and complexity, private or governmental.
  

How Each Feature Works in Practice

• Member Portal Access: Employees log in to see their PF/GF summary, including outstanding loans and submitted claims.
  
• Automated Calculations: The system applies configured rules to compute profits, interest, and gratuity, reducing manual workload.
  
• Loan Rescheduling: HR can adjust loan timelines; the system updates the schedule and calculations dynamically.
  
• Final Settlement: When an employee leaves, the admin triggers a settlement action; PF balance, gratuity, and nominee payout are processed instantly.
  
• Report Customization: Managers define report formats and fields; the software dynamically populates data accordingly.
  

FAQ (Frequently Asked Questions)

Q1: What exactly do PF and GF mean?
A1: PF (Provident Fund) is a joint savings system. Both employer and employee contribute regularly, building a fund that supports the employee post-employment. GF (Gratuity Fund) is a lump-sum benefit based on service tenure and salary, meant as a reward for loyalty and years of service. 

Q2: Is GF mandatory under Bangladeshi law?
A2: No, while the Bangladesh Labor Act, 2006, mentions gratuity under Section 2(10), private organizations are not legally required to establish GF. 

Q3: How does the profit distribution work in PF?
A3: The system tracks investments, calculates profits, and automatically adds the share to individual PF accounts accurately and consistently. 

Q4: Can PF loans be rescheduled?
A4: Yes, PF loans can be adjusted in terms of repayment duration and schedule, with recalculated terms reflected in real time. 

Q5: Is final settlement instantaneous?
A5: Absolutely. With a single click, the platform processes PF and GF settlements and nominee payouts if applicable.

Q6: What types of reports are available?
A6: A wide array from contribution, loan, settlement, profit, voucher, to trial balance reports. GF-specific reports include lapses, forfeitures, encashments, and more. Custom report functionality allows tailored insights.

 Q7: Does it integrate with accounting systems?
A7: Yes, both PF and GF modules are integrated with the core financial module, ensuring synchronization with broader accounting and audit functions. 

Q8: Can employees view their own PF/GF data?
A8: Yes, through the member portal, they can access statements, balances, and transaction history anytime. 

Q9: Who can benefit from this solution?
A9: Any organization, private or government, that manages PF/GF for employees. Especially beneficial for businesses aiming to modernize HR accounting and improve transparency. 

Conclusion

The Shampan PF & GF module is a comprehensive, compliance-ready solution built to modernize Provident Fund and Gratuity Fund management. By automating tracking, investment accounting, loans, settlements, and reporting, it delivers accuracy, transparency, and speed. Its integration within the Shampan HRM & Payroll suite ensures smooth financial continuity, operational efficiency, and real-time access for both employees and HR professionals.

Backed by Symphony Softtech Ltd.’s long-standing expertise in HR and finance systems, this module elevates organizational trust, satisfaction, and productivity, making it an ideal choice for forward-thinking institutions.