February 12, 2024
Employees Provident Fund

The Employees Provident Fund, also known as EPF, is a well-known savings program that the EPFO launched under the direction of the Government of India. 

EPF is funded by 12% of the employee’s base pay and dearness allowance from both the employee and employer. EPF deposit interest is now paid at an annual rate of 8.10%.

Read: How to Withdraw PF Amount Online – Step-by-Step Guide

The interest that has been earned in your EPF account is tax-free and can be withdrawn at any time without paying any fees. When an employee retires, they receive a lump sum payment that includes all accumulated interest.

By visiting the official website, people can apply to use the different online services offered by EPF India. The user-friendly EPF web portal makes sure that services are delivered in a transparent, effective, and hassle-free manner.

Employee Provident Fund Organization (EPFO)

Employees’ Provident Fund Organization, or EPFO, is a non-constitutional organization that encourages workers to save money for retirement.

The EPFO, which was created in 1951, is governed by the Ministry of Labour and Employment. It offers programs that protect Indian and international workers.

Schemes Provided Under EPFO

The three plans provided by EPFO are listed below:

  1. Employees Provident Funds Scheme 1952 (EPF)
  2. Employees Pension Scheme 1995 (EPS)
  3. Employees Deposit Linked Insurance Scheme 1976 (EDLI)

Objectives of EPFO

The main objectives of the EPFO are as follows:

  • In the interest of ensuring that each employee has a single EPF account.
  • It must be as easy as possible to comply.
  • Make sure businesses routinely follow all EPFO rules and regulations.
  • To improve their infrastructure and ensure the dependability of internet services.
  • Every member account ought to be accessible online.
  • The 20-day deadline for settling claims will now just last three days.
  • Encouraging and encouragement of voluntary compliance.

EPF Eligibility

The following criteria must be satisfied to participate in an EPF program:

  • Employees in both the private and public sectors are eligible to join the Employee Provident Fund, therefore anyone can do so.
  • Any business considered to be responsible for providing EPF benefits to its employees must have at least 20 employees.
  • Employees are entitled to receive a variety of EPF advantages, including insurance and pension benefits after they become active members of the program.

How is Interest on EPF Calculated?

Every month, the interest provided on EPF plans is computed by multiplying the rate per year by 12. A strategy like this makes it easier to determine the specific interest rate that is provided to member employees for a certain month.

Calculating EPF

You may simulate how much money will accumulate in your EPF account once you retire with the EPF calculator. You may calculate the lump-sum amount, which includes the interest that has accrued on the investment as well as your contribution and the employer’s contribution.

You can enter your current age, basic monthly salary, special allowances, EPF contribution, and age of retirement up to 58 years in the formula box that is included. You can also enter the current EPF balance if you are familiar with the numbers. After you provide the essential information, the calculator will display the EPF funds that will be available to you when you retire.

Employees Provident Fund (EPF) Form

For any activity to be processed in an EPF employee member’s EPF account, EPF forms are essential. An EPF form must be filled out to complete any of the following actions: registration, PF transfer, withdrawal, or loan application.

The table below provides a brief overview of the various EPS forms and the purposes for which they are needed.

FormPurpose Of The FormApplication 
Form 2For nominating and declaring.Applicable to both EPF and EPS.
Form 5For registering.Applicable to new employees registering for EPS and EPF.
Form 5 IF For availing a claim under the EDLI scheme 
Form 10CFor availing withdrawal benefits or scheme certification.EPS
Form 10DFor availing monthly pension.   
Form 11For transferring the EPF account.  EPF
Form 14For purchasing a LIC policy.   
Form 15GFor availing tax-saving benefits on interest.EPF
Form 19For settling employees’ provident fund.EPF
Form 20For settling employees provide a fund in case of death.EPF
Form 31For EPF withdrawal.EPF

How to Transfer EPF Money

Step 1: EPF can be transferred using the same Universal Account Number (UAN) in the event of a job change.

Step 2: Fill out the registration form on the official EPF member portal.

Step 3: Log in after receiving your login information.

Step 4: Use the same login credentials to request an EPF transfer through the Online Transfer Claim Portal.

Step 5: If you can submit a transfer claim online and are qualified, you can do so without filing Form 13.

Step 6: Click on “Request for Transfer of Money,” then provide your prior employment details as instructed.

Step 7: Ask your new or old employer to verify it.

Step 8: You will receive a PIN on your mobile device after entering your information.

Step 9: Use the tracking ID that was provided to you to track your application.

EPF Benefits

  • Capital Appreciation
  • Corpus for Retirement
  • Emergency Corpus
  • Tax Saving
  • Easy Premature Withdrawal

Rules for EPF Withdrawal

Anyone might choose to withdraw their EPF in full or in part. However, such withdrawals are only permitted in certain situations.

Many of these situations where people can withdraw their EPF are listed below:

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

Following is a list of some of these situations where people can partially withdraw their EPF:

  • For a marriage.
  • For higher education.
  • For building a house or buying property.
  • Loan repayment for a house.
  • Renovating a home or building.

Conclusion

Employees’ Provident Fund is a legal benefit provided to workers in India. Across India application of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (“Act”). The Central Board of Trustees (CBT), which was founded by the Central Government and is made up of members of the Government, Employers, and Workers, manages and administers the Employees’ Provident Fund (EPF). 

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