EPF in Detail – Employees Provident Fund Benefits, Contribution Rate

~ PMUY Admin

The Employees’ Provident Fund, sometimes known as EPF, is a well-known savings program that the EPFO (Employees’ Provident Fund Organization) launched under the direction of the Government of India. The savings program is aimed at the salaried class to encourage their savings behavior and help them accumulate a sizeable retirement fund. Read below to get detailed information related to the EPF like highlights, objectives, benefits, Interest Rate, Forms Types, Eligibility Criteria, Various methods to check balance, Steps for Employers’ EPF Registration, and much more

About

EPF Meaning

The Employees’ Provident Fund Scheme, also known as EPF, was established in 1952 and is a retirement benefit program wherein both the employer and the employee make monthly contributions up until the employee retires. In addition to tax advantages, it offers comparatively greater interest rates than other saving plans. Equal monthly contributions of 12% of the base salary and dearness allowance are made by the employee and the employer to the EPF plan. A tax-saving tool with significantly greater interest rates on investments is the EPF. 8.33% of the employer’s total contribution (12%) is allocated to the Employees’ Pension Scheme (EPS).

PF Balance Check

Employees’ Provident Fund Details in Highlights

Name EPF
Full Name Employees’ Provident Fund
Launched by Employees’ Provident Fund Organization
Beneficiaries Employees
Official Website https://www.epfindia.gov.in/site_en/index.php

EPF Objectives

Some of the key objectives of Employees’ Provident Fund are as follows:

  • These are the main objectives of the EPFO:
  • To guarantee that each employee has a single EPF account
  • Make sure businesses routinely adhere to the EPFO’s rules and regulations.
  • It must be as easy as feasible to comply.
  • Online access should be available for all member accounts.
  • To improve their infrastructure and ensure the dependability of internet services
  • The 20-day claim settlement period will be cut to 3 days.
  • Promotion and encouragement of voluntary compliance

Post Office Saving Scheme

Benefits of EPF

Some of the key benefits of Employees’ Provident Fund are as follows:

  • It aids in long-term financial planning and saving.
  • Monthly deductions from the employee’s pay are made, which over a lengthy period allows for significant savings.
  • Making a single, lump-sum investment is not necessary.
  • An employee may benefit financially in a crisis.
  • It aids in maintaining a good standard of living and helps one save money for retirement.

Employee Provident Fund Organization

A non-constitutional organization called the Employees’ Provident Fund Organisation (EPFO) encourages workers to save aside money for their retirement. The organization was established in 1951 and is overseen by the Ministry of Labour and Employment, Government of India. Indian workers and foreign workers are covered by the organization’s programs (from countries with which the EPFO has signed bilateral agreements).

Universal Account Number (UAN)

All EPF members can access their PF accounts online and perform actions including making withdrawals and checking their Employees’ Provident Fund balance. Accessing the EPFO member portal is made easier by the Universal Account Number (UAN). Each member of EPFO is given a 12-digit number called a UAN. An employee’s UAN does not change even if they switch employers. A member’s member ID changes when their job does and the new ID is connected to their UAN. However, to use the services online, employees must activate their UAN.

EPF Interest Rate 2023

For the Financial year 2022-2023, PF interest rates are currently 8.10%. The amount of interest that has accumulated in the EPF account at the end of a fiscal year is simple to compute. The total balance in the account is calculated at the end of the year by adding this sum to the employer and employee contributions.

File Online EPFO e nomination

Employees’ Provident Fund Contribution Rate

The categories listed below represent how the employer contributes:

Category Contribution Percentage(%)
Employees Provident Fund 3.67
Employee’s Deposit Link Insurance Scheme (EDLIS) 0.50
Employees’ Pension Scheme (EPS) 8.33
EDLIS Admin Charges 0.01
EPF Admin Charges 1.10

EPF Forms Types

The various types of Employees’ Provident Fund forms and their uses are as follows:

Form Type Form Use
Form 31 The PF Advance Form is another name for it. It can be utilized to get EPF account withdrawals, loans, and advances.
Form 10D A monthly pension may be requested using this form.
Form 10C To make a benefit claim under the EPF program, utilize this form.The money the employer contributes to EPS is withdrawn using Form 10C.
Form 13 The PF amount from your prior work is transferred to your present employer using this form. This aids in maintaining all PF funds in a single account.
Form 19 To request the ultimate settlement of an EPF account, utilize this form.
Form 20 If the account holder passes away, the family may utilize this form to withdraw the PF amount.
Form 51F A nominee may use this form to claim benefits under the Employees’ Deposit Linked Insurance.

EPF Eligibility Criteria

The eligibility criteria for the EPF program are as follows:

  • Salary workers must open an Employees’ Provident Fund account if their monthly take-home pay is less than Rs. 15,000.
  • Companies with fewer than 20 employees may also voluntarily join the EPF program.
  • If an organization employs more than 20 people, it is required by law that they register for the EPF program.
  • The benefits of the EPF system are available to all of India, except for the states of Jammu and Kashmir.
  • Additionally, employees who make more than Rs. 15,000 per month can open an EPF account with permission from the Assistant PF Commissioner.

Various Methods to Check EPF Balance

You can check your EPF balance using one of the following four methods:

  1. EPFO Portal: Using the EPFO member portal to check your EPF balance is simple. You should use your UAN and password to log into the EPF. The EPF balance can be found after logging in under the member ID.
  2. Missed Call Service: From your registered phone number, you can use the missed call service to check your EPF amount by dialing 011-22901406.
  3. SMS Service: To check your EPF balance through SMS, send a message to 7738299899 if your UAN is active.
  4. UMANG App: You can use your phone to check your EPF balance by downloading the Unified Mobile Application for New-age Governance (UMANG) app. With the help of this app, you can also submit and monitor claims.

Steps for Employers’ EPF Registration

For employer’s EPF Registration, the user needs to follow the below-given steps:

  • First of all, go to the Employees’ Provident Fund Organisation (EPFO) website i.e., https://www.epfindia.gov.in/site_en/index.php
  • The homepage of the website will open on the screen
Steps
  • Click on the Establishment Registration tab
  • A new page will open on the screen with Instruction Manual
  • Now, accept the terms and conditions
  • The registration form will open on the screen
  • Now, fill in the form with all the required details
  • After that, an email e-link and a mobile PIN will be sent to your registered email id which is to be activated
  • Now, upload all the required documents to complete the registration process

Steps to Transfer EPF Money

To transfer EPF Money, the user needs to follow the below-given steps:

  • First of all, go to the official website of the EPF member portal
  • The homepage of the website will open on the screen
  • Now, click on the registration option
  • Fill in the registration form with all the required details to complete the registration process
  • After that, go to the Online Transfer Claim Portal
  • Now, request an EPF transfer
  • You can submit a transfer claim online without submitting Form 13 if you are eligible to do so.
  • Click on the Request for Transfer of Funds
  • Enter all the required previous employment details
  • Authenticate it by your old or new employer and submit it
  • After successful submission, a tracking ID will be sent to your registered mobile number
  • Finally, track your application through the received tracking ID

EPF Passbook

You can view your Employees’ Provident Fund account statements and print or download them using the EPFO passbook feature. The passbook is available to all members who have registered their UAN on the EPFO portal. The EPFO passbook contains information such as the employee’s name, establishment ID, specifics of the plan, the name of the office, etc.

EPF Withdrawal Protocols

People might choose to withdraw their EPF in full or in part. However, such withdrawals are only permitted in certain situations. Several of these situations where people can withdraw their EPF are listed below:

  • After Retirement
  • If they are unemployed for a duration longer than two months
  • While transitioning between jobs or changing careers. However, the time spent jobless should be longer than two months.

Partially EPF Withdrawal Protocols

Some of the situations where people can partially withdraw their EPF are as follows

  • For a wedding
  • For purchasing land or constructing a house
  • For higher education
  • Renovating a housing property
  • Repayment of home loan