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Employees Provident Fund (EPF) – EPFO Benefits & Process

The Employees’ Provident Fund, or EPF, is a famous savings scheme that has been added by EPFO under the supervision of the Government of India. The employee and company contribute 12% of the employee’s basic salary and dearness allowance towards EPF. The current rate of interest on EPF deposits is 8.15% p.A. The interest on the EPF is tax-free and can be withdrawn without deciding to buy it. Employees avail of a lump-sum amount on their retirement, which is included with the interest rate.

Individuals can apply to avail of the diverse online services of EPF India through an online portal. The EPF online portal is a user-friendly platform that ensures the flow of services is transparent, efficient, and error-free

What is EPFO (Employee Provident Fund Organisation)?

The Ministry of Labour and Employment established EPFO in 1951. It offers insurance plans for local and foreign people. It is the area’s largest social protection organization for the number of economic transactions.

Also Read:- What is PF in Salary | What is Medical Allowance in Salary | What is a Salary Slip or Payslip

EPF Schemes

EPF contributions encompass numerous schemes, together with

  • Employees’ Provident Funds Scheme 1952 (EPF):- Mandatory for employees with incomes much less than Rs. 15,000 per month.
  • Employees’ Pension Scheme 1995 (EPS):- Provides pension benefits based on provider years and common wages.
  • Employees’ Deposit Linked Insurance Scheme 1976 (EDLI):- Offers lifestyle coverage to contributors with a minimum service duration.

Objectives of EPFO

Here are the main objectives of the EPFO:

  • To ensure every employee has an EPF account.
  • Compliance needs to be facilitated without difficulty.
  • Make companies comply with all of the regulations and rules set by EPFO regularly.
  • To ensure that online services are reliable and to make enhancements to their facilities.
  • For all member accounts to be accessed online without difficulty.
  • Claim settlements are to be reduced from 20 days to 3 days.
  • Promotion and encouragement of voluntary compliance.

UAN and EPFO Portal

All EPF subscribers have online access to their PF bills and may execute operations consisting of withdrawal and checking their EPF balance. EPFO assigns each member a 12-digit number called the UAN. Even if an employee makes adjustments, their UAN remains the same.

The Universal Account Number (UAN) simplifies access to the EPFO member portal. When a member’s role changes, their member ID changes, and the new ID is issued to the UAN.

What are the Services Offered by  EPF Scheme?

EPFO presents various services to businesses and their employees, helping them understand various aspects of the fund. Listed below are some of the services given by EPFO

Online Registration

Employees can easily complete their Online Registration in their Establishments (OLRE) online on the EPFO portal

Generation of UAN Details

Employees can generate their UAN details by using the EPFO online portal and then log in to the UMANG software for easy access to all OF-related data.

Online EPF Subscription

Organisations can easily make the PF bills/subscriptions online

Redressal of Grievances

EPF members can file a complaint in case of queries concerning the agreement of pension, PF withdrawal, transfer of PF, etc.

Online Claims Transfer Status and Passbook

EPF contributors can check the status of their PF claims and/or check/download their PF passbook by using their UAN

Missed Call and SMS Service

Users can get the details related to their PF account (stability, preceding contribution, and so on.) by sending an SMS (Format: EPFOHO UAN to 7738299899) or by giving a missed call at 011-22901406

EPF Member Passbook

EPF Members can easily download their passbook from the official portal. With this, they can check the detailed transaction history related to their contributions and withdrawals from EPF accounts.

Pensioner’s Portal

Employees can get the solutions to all their pension-associated queries together with Pension Payment Order (PPO), pension credit score, passbook details, and so on the portal.

One Employee, One EPF Account

The EPFO portal permits EPF account holders to merge their PF bills, operated/opened by various agencies, with their UAN.

TRRN Query

TRRN stands for Temporary return reference numbers used to check the status of the PF challan price of employees.

Helpdesk

The EPFO member portal offers a helpdesk for all PF-associated queries of the employees.

ECR Portal

ECR ( Electronic challan cum return portal) allows employees to log in to e- sewa portal and create their unique user ID and password. The ECR may be uploaded by employees with digital signatures.

EPF Contribution

The company and the employee make the same contributions to the EPF account, as mentioned below.

Contribution ThroughMonthly Percentage Contributed
Employer12%
Employee12% or 10%
Total24%

Key Points About Employees Provident Fund (EPF) Contribution

Employees Provident Fund EPF

Here are the various key highlights of EPF contribution made by both employees and the company

  • 12% Employer’s contribution consists of 3.67% EPF and 8.33% EPS
  • 10% EPF proportion is valid for the companies where there are 20 or much less than 20 employees /organizations with losses incurred more than or equal to the net worth (at the end of the economic year) /companies declared ill by the Board for Industrial and Financial Reconstruction
  • The total contribution made by the organization is distributed as 8.33% closer to the Employees’ Pension Scheme and 3.67% in terms of the Employees’ Provident Fund.
  • All contributions are updated in the EPF member passbook
  • The contribution made by an employee is going towards the provident fund of the employee.
  • Apart from the above contributions, an additional 0.5% towards EDLI has to be paid through the employees.
  • Certain administration prices towards EDLI and EPF made at the rate of 1.1% and 0.01%, respectively, additionally need to be incurred by the company. This method means that the business company has to make a contribution of a total of 13.61% of the funds toward this scheme.

EPF Eligibility

EPF’s full form is Employees Provident Fund (EPF), a category of Provident Fund Schemes. Here are eligibility criteria given below

  • All states in India can enjoy the provisions of the EPF scheme.
  • EPF account registration is important for salaried employees with a salary of as much as ₹ 15,000.
  • Employees with a salary of more than ₹ 15,000 may also create the EPF account concerned with approval from the Assistant PF Commissioner.
  • Organizations with more than 20 employees can apply for the EPF scheme.
  • Organizations with much less than 20 employees are eligible
  • Employees are eligible to get employee provident fund advantages, such as coverage advantages and pension benefits if they are considered active contributors to the EPF program.

What are the Benefits of the EPF Scheme?

Here is a list of EPFO benefits that an EPF employee member can get

1. Capital Appreciation

The PF online scheme gives an interest on the deposit held with EPF India. Additionally, rewards are given at maturity and ensure the growth of employees’ funds and boost capital appreciation.

2. Corpus for Retirement

Around 8.5% of an organization’s contribution is given to the Employee Pension Scheme. In the long run, the sum deposited toward the employee provident fund builds a healthy retirement corpus. Such a corpus would extend an experience of economic stability and financial independence after retirement.

3. Emergency Corpus

Uncertainties are a part of lifestyles. Therefore, every person needs to store some funds and stay financially stable. An EPF fund acts as an emergency corpus when an individual needs emergency funds.

4. Tax-saving

Under Section 80C of the Indian Income Tax Act, an employee contribution closer to their PF account is eligible for tax exemption. Moreover, funds generated through EPFO schemes are exempted from taxes. Such exemption may be availed as much as a limit of Rs. 1.5 Lakh.

5. Easy Premature Withdrawal

Members of EPF India can avail themselves of the benefits of partial withdrawal. Individuals can withdraw funds from their PF account to fulfill their unique requirements like pursuing better training, building a house, meeting wedding expenses, or availing medical treatment.

EPF Withdrawal Rules

There are three conditions upon which 100% of the EPF may be withdrawn

  1. Upon attaining the age of 58 years
  2. If you’re unemployed for 2 months or more
  3. Upon the demise of the member upon which the complete corpus is given to the nominee

If you want to withdraw from your EPF account earlier than retirement, then there are some terms and conditions that you want to take into account. These conditions are education, purchase of land, marriage, medical emergency, home loan reimbursement, etc.

How to apply for PF in India?

As an employee, your enrolment for EPF occurs at the discretion of your company, and the procedure is completed by your agency. If you’re a company proprietor, and your company wants to sign up under this scheme, you have to meet important eligibility criteria and gather a few documents to complete the process.

To be eligible for this scheme, your company should be a registered agency and need to be involved in the activity mentioned in Schedule 1 of the EPF Act. Apart from that, the minimum employee power of the company should be 20 humans. Once eligible, you can apply for an EPF account with the following documents.

  • A copy of the partnership deed in case of a partnership organization.
  • If your business company is a government or private limited company, you should have a copy of the Certificate of Corporation. You also want to publish a copy of the Memorandum and Articles of Association.
  • If you want to check into your society, you want to post a copy of the registration certificate of your society along with a copy of the guidelines and objectives of the society.
  • Apart from these particular documents, all agencies want to post salary tax documents, PAN details, partition deeds, first salary invoices, salary information of employees, and a copy of the balance sheet.

How to Check EPF Balance?

4 methods help you check your EPF stability

  • Using the EPFO portal – The process of checking your EPF balance through the EPFO member portal is simple. You need to log in to EPFO using your UAN and password. After logging in, you will be able to learn about your EPF stability under the member ID.
  • Using the UMANG app – You can download the UMANG app and carry out the process of checking your EPF balance on your phone. You can also raise and track claims through this app.
  • Using a missed name service – It is easy to check the EPF balance by giving a missed call to the number 011-22901406 from your registered mobile number.
  • Using an SMS service – If your UAN is activated, you could send an SMS to 7738299899 for an EPF status check.

Conclusion

Employees’ Provident Fund (EPF) is an investment scheme operated under the Employees’ Provident Funds and Miscellaneous Act, 1952. The EPF investment scheme is managed by the Central Board of Trustees (CBT) and regulated by the Employees’ Provident Fund Organization (EPFO). In this scheme, an employee needs to contribute 12% of their monthly salary to the fund.

FAQs:-

What are the reasons for an employee to partially withdraw EPF?

An employee can partially withdraw PF for medical purposes, education, marriage, home loan, purchase/ production of immovable goods, or house protection.

Does the calculation of 5 years of regular service consist of the internship time?

No, the 5-year calculation period includes the months when you have been on everlasting funds; however, it does not include the internship period.

Can an employee contribute to the Employee Provident Fund after leaving the company?

No, employees don’t need to contribute to the Employee Provident Fund when they leave their job and company. EPF mandates that a company contributes the same amount as the employee. However, considering a person has left the company, they cannot be considered an employee.

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