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The Employees’ Provident Fund (EPF) is an instrument of savings for the working masses of the country. This fund is managed under the Employees Provident Fund and Miscellaneous Provisions Act of 1952, by the EPFO.
Under the EPF scheme, an employee has to pay a certain percentage from his or her pay and an equal amount is contributed by the employer. The employee receives a large amount of money which has interest added to it. This money could be claimed at retirement or after 2 months of a job change.
Employee Provident Fund: The employee’s contribution is matched by employer’s contribution (till 12%). Contribution of the employer is not a part of the tax, while the employee’s contribution is taxed, and at the same time, open for deduction under section 80C of Income tax Act. The EPF amount earns interest as declared by the government.
The 1995 Employees’ Pension Scheme gives pension upon: A. Disablement B. Widow pension C. Pension for nominees
Employees Deposit Linked Insurance Scheme has the option for payment of a large sum to the insured person’s beneficiary in case of death by natural causes, illness etc., when still employed.
The Employee Provident Fund or simply Provident Fund (PF) is a long-term savings and pension instrument for all salaried persons in India. Any organisation with 10 plus employees is required to register with the Employee Provident Fund Organisation.
For the employees who earn a basic monthly salary of Rs. 15,000 or less, Provident Fund is compulsory. For all others, the Provident Fund is optional - such employees can opt out of the Provident Fund at his or her discretion.
You as an employee can contribute 12% of your basic pay towards your Provident Fund every month. This contribution is subtracted from the salary before the salary reaches your bank account. The employer gives 12% on your basic salary and puts it into your account. This is 24% of your base salary. Besides this, the employer gives another 1.61% as charges.
Not all the contribution goes to Provident Fund. Some of the Provident Fund becomes administration charges at1.11%. Another part goes to the Employee Deposit Linked Insurance Scheme or EDLIS at 0.5%. A portion is put into an Employee Pension Scheme or EPS (8.33%), and the remaining (15.67%) goes to the Provident Fund itself.
It is advisable to check your EPF balance regularly since it is your disciplinary retirement savings scheme which has been jointly built up by you and your employer. There are multiple ways you can check your Employees’ Provident Fund balance. The balance can be checked using
Once your Universal Account Number is activated, just follow these steps:
The SMS option is there in 10 languages. This includes English, Hindi and various other languages. To know your EPF balance, you need to meet the below mentioned requirements:
To know your current EPF balance, give a missed call on 011 22 901 406. For this, Universal Account Number registration is mandatory.
Every employee in India should have an Employee Provident Fund if he/she has a salary of INR 15000/- or less. If the Employer does not have it, the employee has right to ask for EPF in his or her name. Generally, the employer has to pay the equivalent amount towards the EPF as much as the employee pays.
Factors deciding family status:
In the event the member is holding a Scheme Certificate (under EPS, 95), he should surrender the same to the concerned EPF office, through his employer.
A member gets many facilities including likes of:
The withdrawal process will entail these conditions. Narrow on one that you deem is suitable as per your requirements.
Withdrawing Provident Fund balance plus EPS amount. If the service period has been less than 10 years, both Provident Fund balance and the EPS amount will be paid. To get EPS amount, in the Composite Claim Form (Aadhaar or Non-Aadhaar), along with choosing 'Final Provident Fund balance', select the 'pension withdrawal' option. In case you wish to re-join employment, you can go for the scheme certificate under form 10C.
Withdrawing Provident Fund balance plus EPS amount (over ten years of service). If you have already completed 10 years of service, the EPS amount cannot be taken out and only a fund certificate is given when you fill Form 10C together with a Composite Claim Form. Pension gets initiated at 58 years of age. The reduced pension comes from age 50 onwards. One may opt for early pension after 50 years, provided one has completed 10 years of service.
Withdrawing Provident Fund balance and reduced pension (age 50-58) (over ten years of service). You can get pension after touching the age of 50 years and have rendered at least 10 years of service. When you been employed for more than 10 years and your age is between 50 and 58, you can select reduced pension. This requires that Form 10D is sent in along with Composite Claim Form.
Withdrawing Provident Fund balance and full pension (After 58 years of age). After the age of 58, you need to hand-over the same Form 10D to claim the full pension.
How can I know my EPF balance?
It is advisable to check your EPF balance regularly since it is your disciplinary retirement savings scheme which has been jointly built up by you and your employer. One can verify balance via:
How can I check my EPF balance through SMS?
To find your EPF balance, you need to meet the below mentioned requirements:
Format of SMS to be sent is: EPFOHO UAN
How can I check my EPF balance online?
How do I know my Universal Account Number?
Go to the EPFO Portal for Universal Account Number related services. Select the ‘Know your Universal Account Number status’ option under the ‘important links’ section. You will be redirected to another page. Here you have to enter details like current member ID or EPF account number, name, mobile number, date of birth and email. The EPF member ID is printed on your salary slip.
How is EPF calculated?
To understand the methodology as employed in the ET EPF Calculator, let us take the following case:
How do you check your balance?
It is advisable to check your EPF balance regularly since it is your disciplinary retirement savings scheme which has been jointly built up by you and your employer. There are a number of ways by which you can check your EPF balance. One may verify balance using missed call, SMS, mobile app, etc.
How can I activate my Universal Account Number?
Universal Account Number is important as the entire process related to Employee Provident Fund) services is now operated online. Thanks to Universal Account Number, accessing your EPF account services like withdrawal, checking fund balance without the help of employer and Provident Fund loan application is easy.
What is meant by Universal Account Number?
Universal Account Number is a 12-digit number that every employee contributing to EPF has. The Employee Provident Fund Organisation allots it. Universal Account Number of an employee remains same throughout life irrespective of the number of job he/she changes. Every time an employee switches a job, the EPFO shall allot a new member identification number (ID), which will be linked to the Universal Account Number. You can put in a request for this new member ID by submitting the Universal Account Number to the new employer. Once the member ID is created, it gets linked to the Universal Account Number of the employee.
How can I change my mobile number (in UAN) if I have forgotten my password?
Go to Universal Account Number website of EPFO Click on Forgot Password. Enter your Universal Account Number and Captcha. Click on Verify. The mobile number mapped to your Universal Account Number will be shown. To change the mobile number, you may choose No. You will see display regarding Name, DoB etc. Click on Verify. If you get an error such as Details not matching, check with your employer as to which Aadhaar Number or PAN number is linked with your Universal Account Number. Validate your details against Aadhaar or PAN. Click on Verify near the Document number. If you get Details not matching error, check with your employer as to which Aadhaar Number or PAN number is linked with your Universal Account Number. When you see validated details then you may definitely input a fresh mobile number. Select Get OTP and finish the process.
What is EPF account?
The purpose of EPF is to provide financial security and stability to elderly people on retirement. An employed person makes regular contribution basis towards their EPF. The employer is also expected to contribute to the fund. The EPF & MPA, 1952 is very much valid for all states with the exception of Jammu and Kashmir.
What is the minimum basic salary for Provident Fund deduction?
The minimum mandatory Provident Fund contribution (and deduction) shall be Rs 1,800 per month (12% of Rs 15,000). If the Provident Fund wage of an employee is less than Rs 15,000 per month, the minimum mandatory Provident Fund contribution (and deduction) shall be 12% of the actual Provident Fund wage.
How is Provident Fund calculated for employer?
For calculating the retirement corpus, one needs details on:
Present age, age when you plan to retire.
Monthly base salary, expected average increase in the basic salary.
Your EPF contribution as well as your employer's contribution.
The interest rate is declared by the government every year.
How is Employee Provident Fund calculated?
If you have a look at your monthly pay-slip, you will see that each month, 12% of your earnings goes towards EPF account. The complete monthly segment goes to EPF. Your employer also contributes 12% of the salary to your EPF account. From the 12% of your employer’s monthly contribution, 8.33% is put in EPS (Employees’ Pension Scheme) and only 3.67% is invested in Employees’ Provident Fund. You put in 12% of your basic salary and your employer puts in 3.6% of your basic salary towards EPF deposits.
Is EPF and Provident Fund same?
Provident Fund and EPF are terms used to denote the same, Employees Provident Fund. Employees Provident Fund has 3 operational schemes, A. Provident Fund, B. Pension Fund C. Employees Deposit Linked Insurance. Towards Provident Fund the employees share of 12% and 3.67% of the employer's contribution are credited. The remainder 8.33% of the employer's share in the total contribution goes to the Pension Fund. Since the Pension fund is dealt with separately with a contribution by the Central Govt to it, the balance is not reflected in the contribution card issued to the members.
Is Provident Fund mandatory?
If you a salaried person then yes you must be holding an Employee Provident Fund Account. It is mandatory to have an EPF account if you are in job and draw a salary of up to INR 15,000 per month. EPF is optional for individuals drawing salary more than INR 15,000 per month.
Can I withdraw my PF?
You can take funds out from EPF and EPS should you be unemployed for 2 months. You can also wait for two months to get a new job and then you can get your Provident Fund Account transferred to the new Account.
Is Provident Fund mandatory for employers?
Yes, is mandatory for an employer to contribute towards Employees’ Provident Fund for each and every employee
What is EPF pension scheme?
The Employees’ Provident Fund pension or EPS is a pension scheme for the employees of the organized sector who otherwise don’t have any pension scheme.
The Employee pension scheme runs along the Employees’ Provident Fund scheme. Employees’ Provident Fund is also retirement saving scheme which give you lump sum amount after the retirement.
This fund stands as an assurance of monthly pension post retirement. The department EPFO manages the pension account of all employees. The EPF pension tries to give social security to its employees and their families.
Can I withdraw my Provident Fund before 5 years?
An essential point to be noted is that withdrawing from the EPF account is not recommended. A lot of employees withdraw from their EPF account when they leave the organisation. The legally right thing is to transfer the EPF account from old employer to new employer After leaving your job and being without employment for two months, you can take funds from EPF and EPS. EPF handles withdrawal within 20 days.
Can we withdraw Provident Fund and pension?
Yes, you can withdraw the contributed EPS amount along with your Employees' Provident Fund balance. However, you should be at less than ten years of job. When you take funds out of EPF, then you receive your contribution + Employer’s EPF contribution + Interest earned on it.
How can I get my lost Universal Account Number?
You can approach the HR of your organization and inquire about your Universal Account Number. Every employer does have the Universal Account Number details of every employee.
You can check for the Universal Account Number from your pay-slips issued by the HR.
Give a missed call to 011-22901406 from your registered mobile number. You will receive an SMS containing Universal Account Number details.
You can check the Universal Account Number online from the official website of EPF. To recover the Universal Account Number from the website, you need to activate your account providing the account details.
How can I link my old Provident Fund account to Universal Account Number?
The process to link is as follows:
What is pension contribution in EPF?
All employees from the organized sectors can avail pension, provided he or she contributes towards EPF. The Employee Pension Scheme is clubbed with EPF. A minimum of INR 1,000 per month will now be granted as pension to employees of the organized sector. Earlier employees received a meagre pension of INR 500, which made survival tough for the employees.
How can I activate my EPF account?
In order to activate Universal Account Number, it is essential that you have your Universal Account Number and Provident Fund member ID with you. Given below are steps to activate.
What is universal account number for PF?
Universal Account Number is a 12-digit number which is provided to each member of the Employees’ Provided Fund Organisation (EPF) through which he can manage his Provident Fund accounts. This series is issued by the Employment and Labour ministry of the government. It allows the person to get all Provided Fund (PF) information in one place irrespective of the organization he works for.
What is a PF?
Provident fund is a mandatory retirement fund instrument that is managed by authorities and government. As per this, an employee diverts a portion of his/her salary towards the provident fund and the employers also have to share on behalf of the employees.
How PF pension is calculated?
8.33% of the employer’s contribution (on a monthly basis) from the EPF goes into EPS. Monthly contributions towards EPS are limited at 8.33% of INR 6500 or INR 541/month. From Sep 2014, it is INR 1250 (This is 8.33% of 15,000). Government contributes 1.16% of the employee’s monthly wage when salary is below INR 6,500.
Unlike the EPF contribution, EPS part (8.33% out of 12% contribution from your employer or Rs 541 and after Oct 2014 Rs 1250 whatever is minimum) does NOT get any interest.
Whole life pension is reserved for members and upon death family members are entitled to it.
Upon retirement this pension is known as superannuation pension.
An employee may initiate receipt on a pension under EPS when he has served minimum 10 years and attained the age of 58 years. One may take EPS Pension right after completing 58 years of age.
Can we withdraw pension contribution?
Yes, you can take money out from the contributed EPS amount along with your EPF balance. However, you should have finished 10 service years. When you take money out of EPF, then you get your contribution + Employer’s EPF contribution + Interest earned on it.
How can I merge my Provident Fund account?
To merge two existing EPF accounts, the member must visit the EPF website and under the “Services” tab, click on “One employee - One EPF account” button. When you press on the link, a form shall open for consolidating different EPF accounts. The member must enter his mobile number registered on the Universal Account Number portal.
What is member ID in PF?
Member Id or Member Identification Numbers or Employee Provident Fund (EPF) account number is the number given by EPF to allow the employer to submit EPF and EPS contribution for the employee. When you change a job the EPF contribution in it is made to a new Provident Fund account number or Member Id. From 2014, these different Member Ids should be tied to Universal Account Number
Can I withdraw my EPS amount?
Yes. You can take out funds from the contributed EPS amount along with your EPF balance. However, this is at less than 10 Years of service. When you withdraw EPF, then you receive your EPF contribution + Employer’s EPF contribution + Interest earned on it.
What is pension fund contribution in PF?
All employees of organized sectors can get pension, if he or she ensures to contribute to the EPF. The Employee Pension is amalgamated with the Employee Provident Fund. The minimum pension value in EPS is now higher than before. A minimum of INR 1,000 per month will now be granted as pension to employees of the organized sector. Earlier employees received a meagre pension of INR 500, which made survival tough for the employees.
How many employees are required for provident fund?
According to the EPF new rules, an enterprise with minimum of 10 employees has to be registered with the Employees' Provident Fund and Miscellaneous Provisions Act.
What is pensionable salary?
This is the income utilised by the employer to derive pension or PF contribution. This is inclusive of fixed salary and wages, excluding of variables as commissions, bonuses etc.
How can I check my EPF?
Visit the EPF member portal. Choose our services tab and then choose for employees tab. Select “PF balance” tab or “member passbook”. As soon as the “member balance” option is displayed, enter the details of the Provident Fund office holding your account.
How can I get Universal Account Number?
The EPF member needs to visit the EPF website. Select activate your UAN based registration tab. Upon selection, you may read the instructions and choose – read and understood. After this use these allocations.
Information Authorisation User ID and password
How can I check Provident Fund balance?
You can check the balance anytime from the comfort of your home or even office using any one of these five avenues - Umang App, EPF portal, EPF app, SMS, or by just giving a missed call.