EPF - Employees' Provident Fund

EPF is the main scheme under the Employees’ Provident Funds and Miscellaneous Act, 1952. The employee and employer each contribute 12% of the employee’s basic salary and dearness allowance towards EPF. Currently, the rate of interest on EPF deposits is 8.50% p.a.

EPFO (Employee Provident Fund Organization)

The Employees’ Provident Fund Organisation (EPFO) is a non-constitutional body that promotes employees to save funds for retirement. The organisation is governed by the Ministry of Labour and Employment, Government of India and was launched in 1951.

The schemes offered by the organisation cover Indian workers and international workers (from countries with whom the EPFO has signed bilateral agreements).

Union Budget 2021 Highlights:
Your retirement savings to take a hit
-
During the Union Budget 2021, the Ministry of Finance announced that the tax-free return for Unit Linked Insurance Plans (ULIPs) and Provident Funds (PFs) have been restricted at Rs.2.5 lakh each.

Previously, a limit of Rs.7.5 had been imposed on the employer’s contribution to PF. Now contribution above Rs.2.5 lakh will be taxable during the time of withdrawal of the PF amount.

Earlier, if you had paid premiums less than 10% of the total insurance cover, than the maturity amount would not be taxable. However, now any amount above Rs.2.5 lakh will be taxed by the government.

Objectives of EPFO

Given below are the main objectives of the EPFO:

  • To ensure every employee has only one EPF account.
  • Compliance must be facilitated easily.
  • Make sure organisations follow all the rules and regulations set up by the EPFO on a regular basis.
  • To ensure that online services are reliable and to make improvements in their facilities.
  • For all member accounts to be accessed online easily.
  • Claim settlements to be reduced from 20 days to 3 days.
  • Promotion and encouragement of voluntary compliance.

Universal Account Number (UAN)

All subscribers of EPF can access their PF accounts online and perform functions like withdrawal and checking EPF balance. The Universal Account Number (UAN) makes it convenient to login to the EPFO member portal.

The UAN is a 12-digit number alloted to each member by EPFO. The UAN of an employee remains the same even after he/she switches jobs. In the event of a job change, the member ID changes, and the new ID will be linked to the UAN. However, employees must activate their UAN in order to avail the services online.

You can get your UAN through your employer. In case you are unable to do so, you can easily login to the UAN portal (https://unifiedportal-mem.epfindia.gov.in/memberinterface/) with your member ID and find the UAN.

Schemes Offered Under the EPFO

Given below are the various schemes that are present under the EPFO:

  • Employees’ Provident Funds Scheme 1952 (EPF)
  • Employees’ Pension Scheme 1995 (EPS)
  • Employees’ Deposit Linked Insurance Scheme 1976 (EDLI)

EPFO Services

Some of the services offered by the EPFO are mentioned below:

  • Helpdesk for Inoperative Accounts - In February 2015, the EPFO set up the Inoperative Accounts Online Helpdesk to help employees track dormant and old inoperative accounts that do not accumulate any interest. Employees can track these accounts, and either withdraw the funds or transfer them to the current Member ID. Basic details must be provided by the employees about their previous employment to track inoperative accounts.
  • Online withdrawal of EPF - The EPF withdrawal amount can be easily done online with the help of the UAN. Employees who have been unemployed for more than 2 months are eligible to withdraw their EPF amount. However, the Aadhaar and bank details of the employee must be linked with the UAN.
  • International workers can generate a Certificate of Coverage - EPF members that are working in countries who have Social Security Agreements with India can generate a Certificate of Coverage (CoC) with the help of an online centralised software that the EPFO has launched.
  • Monthly returns for exempted establishments - With the help of the IT tool that the EPFO has launched, exempted establishments can file their monthly returns online without any trouble.
  • UMANG App - The EPFO has launched the Unified Mobile Application for New-age Governance (UMANG) for EPF members. Employees can use their UAN and password to avail the services of the UMANG app. Various services such as viewing of EPF passbook, updating profile details, etc. are available on the UMANG app.
  • Online transfer of EPF - EPF Transfer amount from the employee’s previous Member ID to the current one can be done online with the help of the UAN. The process is hassle-free, paperless, and simple.
  • Establishments can register online - The Online Registration of Establishments (OLRE) can be completed on the EPFO portal. Employees are also benefitting due to the online presence of the PF code allotment letter.
  • Online payments of PF - It is compulsory for all organisations to make the PF payments online. Currently, Kotak Mahindra Bank, Axis Bank, ICICI Bank, HDFC Bank, Bank of Baroda, Union Bank of India, Allahabad Bank, Indian Bank, Punjab National Bank (PNB), and State Bank of India (SBI) are the 10 banks that have agreements with the EPFO for the collection of dues.
  • Missed call and SMS service - Members who have activated their UAN can access their PF balance, previous contribution, the status of KYC, etc., by sending an SMS (Format: EPFOHO UAN) to 7738299899 or by giving a missed call to 011-22901406. Employers will also receive an SMS for non-payment of EPF.
  • Claim status and passbook - The EPFO members will be able to check the status of their claims as well as view and download the EPF passbook with the help of the UAN.
  • Grievances - In case of any issues regarding the settlement of pension, transfer of PF, withdrawal of PF, etc., members can raise a complaint online. Grievance redressals are a top priority for the EPFO, and they are dealt with swiftly. 80% of the complaints are solved within 7 days and 97% of them are solved within 15 days. Due to constant monitoring of the EPF grievances, complaints have come down from 20,000 to 2,000-3,000 in a day.

PF Contribution

The employer’s contribution is divided into the below mentioned categories:

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

It is mandatory for the employee and the employer to make a EPF contribution. Each make a 12% contribution of the employees’ dearness allowance and basic salary towards EPF. Given below are the details of the employees’ and employers’ contribution towards EPF.

  • Employee’s contribution towards EPF - 12% of the employee’s salary is deducted by the employer on a monthly basis for contribution towards EPF. The entire contribution goes towards the EPF account.
  • Employer’s contribution towards EPF - The employer also contributes 12% of the employee’s salary towards EPF.

EPF Benefits

Given below are the benefits of the EPF scheme:

  • It helps in saving money for the long run.
  • There is no requirement to make a single, lump-sum investment. Deductions are made on a monthly basis from the employee’s salary and it helps in saving a huge amount of money over a long period.
  • It can help an employee financially during an emergency.
  • It helps in saving money at the time of retirement and helps an individual maintain a good lifestyle.

EPF Interest Rate

Currently, PF interest rate is 8.50%. It is possible to easily calculate the interest amount accumulated in the EPF account at the end of a financial year. This amount is added to the employer and employee contributions at the end of the year to find the total balance in the account.

EPF Eligibility

The eligibility criteria in order to join the EPF scheme are mentioned below:

  • It is mandatory for salaried employees with an income of less than Rs.15,000 per month to register for an EPF account.
  • As per law, it is mandatory for organisations to register for the EPF scheme if they have more than 20 employees working for them.
  • Organisations with less than 20 employees can also join the EPF scheme on a voluntary basis.
  • Employees who earn more than Rs.15,000 can also register for an EPF account; however, they must get approval from the Assistant PF Commissioner.
  • The whole of India (except the states of Jammu and Kashmir) can benefit from the provisions in the EPF scheme.

How to Check EPF Balance?

There are four methods in which you can check your EPF balance:

  • Using the EPFO portal - The process of checking your EPF balance through the EPFO member portal is easy. You should do EPF login using your UAN and password. After logging in, you will be able to find the EPF balance under the member ID.
  • Using the UMANG app - You can download the Unified Mobile Application for New-age Governance (UMANG) app and perform EPF balance check on mobile phone. You can also raise and track claims through this app.
  • Using a missed call service - It is possible to check your EPF balance by giving a missed call to the number, 011-22901406, from your registered phone number.
  • Using an SMS service - If your UAN is activated, you can send an SMS to 7738299899 for EPF balance check.

Types of EPF Forms

The table below gives the list of different EPF forms and their uses:

Type of Form Use of the form
Form 31 It is also known as the PF Advance Form. It can be used for obtaining withdrawals, loans, and advances from the EPF account.
Form 10D This form is used for availing a monthly pension.
Form 10C This form is used to claim benefits under the EPF scheme. Form 10C is used to withdraw the funds that the employer contributes towards EPS.
Form 13 This form is used to transfer your PF amount from the previous job to your current one. This helps in keeping all the PF money under one account.
Form 19 This form is used to claim the final settlement of EPF account.
Form 20 Family members can use this form to withdraw the PF amount in case the account holder passes away.
Form 51F This form can be used by a nominee in order to claim the benefits of the Employees’ Deposit Linked Insurance

EPFO Portal Login

The first step in logging in to the EPFO portal is the activation of UAN. This can be easily done on the EPFO portal.

After UAN Login, the following activities can be done:

  • You can download the UAN Card and passbook
  • View the status of PF linking
  • View member IDs
  • View the status of PF transfer claim
  • Edit personal details on the EPFO portal
  • Update KYC information

An employee can login to the EPF member portal using his/her UAN and password. Employers can also login to the website using the permanent login ID and password.

EPFO Employee Login

The process for an employee to login to his/her EPFO portal is simple. First, the employee will need to visit https://www.epfindia.gov.in/site_en/index.php and login using the UAN and password. It is possible to claim PF, update KYC details, check PF balance, and transfer PF amount on the portal.

EPFO Employer Login

An employer should create a username and password at the first login to the EPFO employer portal (https://www.epfindia.gov.in/site_en/For_Employers.php). Once the employer logs in to the portal, it is possible to approve the KYC details of employees.

EPF Passbook

You can use the EPFO passbook facility to check your EPF account statements and print/download the statements. All members who have registered their UAN on the EPFO portal can use the EPF passbook.

The EPFO passbook has details such as the name of the employee, establishment ID, EPF scheme details, name of the EPF office, etc.

EPFO account holders can update exit date online after a job change

The EPFO has now enabled a feature on the official website that allows users to update their ‘'date of exit’', after changing jobs, online. This facility was not available to employees previously. It was only employers who were able to update their exit dates online.

Steps to update your date of exit online

  • Visit the EPFO’s official website
  • Log into your account using your Universal Account Number (UAN) and password
  • Navigate to the section called ‘'Manage’'
  • Click on ‘'Mark Exit’'
  • This will give you a dropdown menu on ‘'Select Employment’' from where you can select your PF account number
  • Fill in your date of exit and reason for exit
  • Click on ‘'Request OTP’'. The OTP will be sent to the mobile number linked to your Aadhaar card
  • Enter the OTP
  • Select the checkbox
  • Click on ‘'Update’' and ‘'Ok’'
  • You will receive a message confirming that the date of exit has been successfully updated
  • Now navigate to the ‘'View’' section and under that, ‘'Service History’'
  • You can now see the date of joining and exit from both your EPS and EPF accounts

Note that you can mark your date of exit only after 2 months of leaving your place of employment.

Importance of updating the exit date

Updating your exit date is important for claims submissions and settlements. If your exit date is not updated or is mentioned inaccurately, then your employment will not be marked continuous and you would have to pay tax on the interest that is earned during the intervening period.

PF Withdrawal Online

It is possible to partially withdraw from the EPF account for the purchase of a house, wedding expenses, or for medical expenses. The amount of money that can be withdrawn will based on the reasons for the withdrawal. It should be noted that there is a lock-in period for partial withdrawal and this also varies based on the withdrawal purpose.

The entire PF amount can be withdrawn under several circumstances. Some of these include the attainment of retirement age, resignation due to permanent total mental/bodily incapacity, permanent relocation to other countries, death of the member, etc.

Given below are some of the reasons why EPF should not be withdrawn before 5 years of service:

  • Section 80C benefits cannot be availed: In case individuals have been claiming benefits under Section 80C of the Income Tax Act and they withdraw their PF amount completely, the interest that has been earned on the employee’s contribution must be taxed.
  • The amount will be taxed: In case any PF withdrawal is done within 5 years of service, the amount that is withdrawn is added to the taxable income. In case the amount that is withdrawn is more than Rs.50,000 and the withdrawal is done within 5 years, there is a 10% tax cut on the amount. However, on submitting Form 15G and 15H with the Income Tax (IT) Department, individuals are exempted from paying this amount.

EPF withdrawal without employer signature

On realizing that getting the approval or attestation of an employer to facilitate a PF withdrawal has caused quite a bit of trouble for many employees, the EPFO has circumvented the process and now employees can make withdrawals without the attestation of their employers. The introduction of the UAN in the EPF had brought about this change, as now, employees just have to link their Aadhaar card to their UAN to make a withdrawal. Having said that, now making a withdrawal without the signature of the employer has two ways - with or without an Aadhaar card.

With an Aadhaar card:

  • Now just by linking the employee’s Aadhaar card to his/her UAN, the whole process of getting the signature of one’s employer has been skipped for good.
  • To facilitate a smooth process, employees should make sure that their Aadhaar card details and bank details are embedded in the EPFO’s member portal.
  • The employer should have verified both - the Aadhaar card and the bank details.
  • The employee has to make sure that his/her UAN has been activated before starting the process of making a withdrawal.
  • Once you have met these conditions, download Form 19- UAN (for making PF withdrawals) and Form 10C- UAN (for making withdrawals from one’s pension scheme).
  • Now, enter your name, address, registered mobile number, PAN card number, and the employee’s reason for leaving and date of joining. The employee should make sure that the details match that on one’s Aadhaar card and bank details. Any discrepancies could lead to a rejection of the application or a delay.
  • Next, the employee should attach a cancelled cheque to the form and submit it to the regional EPF office.

Making a withdrawal without an Aadhaar Card:

  • This process could be a little of an inconvenience, but if it is your last resort, then follow the process mentioned below.
  • The employee should download the Form 19, Form 31 or Form 10C from the EPFO’s member portal, depending on where the withdrawal is going to made from.
  • Once filled, the form has to be attested by an authorised signatory, such as a Gazetted officer, manager of a bank, magistrate, etc. While doing so, the authorized signatory has to sign every page of the form.
  • Since you’ll have to state a reason for not getting the employer’s signature, state “Non-cooperation”.
  • Next, the employer will have to attach an indemnity bond with a 100 Rupee stamp paper, attach one’s payslips, employment ID, appointment letter and Form 19.
  • As a proof of address and identity, submit your regular KYC documents along with the attested form and cancelled cheque and the other papers of verification at the regional EPF office.

EPF Claim Status

Once a member has decided to withdraw his/her EPF funds, they can login to the EPFO portal and submit an online request for the same. The member can also check the status of the EPFO claim online through the EPFO portal.

Alternatively, employees can give a missed call to 011-22901406 from their registered mobile numbers to check claim status. The SMS facility or the UMANG app can also be used for checking EPFO claim status.

In order to check PF status, the following information should be provided by the member:

  • Employment details
  • Extension code, if required
  • Employer’s EPF regional office
  • Universal Account Number (UAN)

EPFO digital signature

To make the process of transfer claims easier and transparent, the EPFO has introduced the digital signature of employers. Now, employers can approve claims by using their digital signatures. When an employer shifts organisations, his transfer claim has to be attested by either his previous employer or the present one, and this is when the digital signature of the employer comes into play. Back then, employers had to fill Form 13 and get it signed by their employers and then submit it to the regional EPF office. Now, the process has been simplified and can be done on the EPFO’s member portal. To have a digital signature, employers have to apply for a digital certificate- which contains their personal details such as name, email ID, APNIC account name, public key and the country of the employer. The digital certificate is issued by the Certifying authority and contains this identification key contains their required details that will be embedded in the EPFO’s member portal.

EPFO grievance

For employees who want to register a grievance, the EPFO has a dedicated part of their member portal for employees to fill in a grievance registration form and file a complaint. Employees usually face grievances with regard to withdrawals, PF settlements, transfer of accounts, settlement of pension and so on. For those who are new to the EPFO’s member portal, follow the steps to register a EPF grievance:

  • Visit the EPFO grievance portal - https://epfigms.gov.in/
  • Click on ‘Register grievance’ on the top bar.
  • Once you have done that, the grievance registration form will be displayed.
  • Now, fill in the registration form:
  • Enter your status (Employer, employee, EPS pensioner)
  • Enter your PF account number
  • Then, enter where your regional EPF office is located
  • Next, enter the name of your establishment and the address of your establishment
  • After that, enter your name, address, pincode, country, phone number and email ID.
  • The last part is to enter the grievance category - whether it is a transfer or withdrawal related issue, a pension settlement issue, etc. Select your grievance from the drop down bar.
  • Upload your grievance letter, enter the captcha and submit your grievance registration.

PF Toll Free Number

Individuals can contact regarding UAN and Know Your Customer (KYC) queries, call EPFO Toll Free No. 1800 118 005.

Procedure to withdraw funds from an EPF account that has been unclaimed

Withdrawal of the EPF amount from an unclaimed account is a very simple process. The procedure to withdraw funds from an unclaimed PF account is mentioned below:

  • The first step would be to visit the EPFO website and fill the required EPF claim form.
  • The form must be submitted at the post office.
  • The individual will receive the PF amount within 3-20 days.

EPFO KYC

Employees can update the KYC details on the e-Sewa portal of EPFO website.

  • After logging in to the UAN EPFO portal, they will have to access the manage KYC option and select the type of document they are updating on the portal, i.e., PAN, Aadhaar, Ration Card, etc.
  • The document number and name of the member (as per the document) will have to be updated.
  • The expiry date of some of the documents may have to be updated as well.
  • Once this is completed, the changes can be saved and submitted.
  • The employer will then assess the details submitted and provide an approval.
  • The employee then receives an SMS confirming the employer’s approval.

FAQ’s on EPF

  1. Can an employer reduce the employer’s share of EPF contribution?
  2. No, the employers cannot reduce their share of EPF contribution. Such a reduction is considered as a criminal offence.

  3. How is EPF contribution calculated if the employee is paid on a daily or partly basis?
  4. The contribution amount is calculated by the salary that is paid in a calendar month.

  5. Is it possible for the employee to contribute towards EPF after he/she quits the job?
  6. No, it is not possible for an employee to contribute towards EPF if he/she has left the service. The employee’s and employer’s contribution must match.

  7. Whom should the employee approach if he/she is not given PF membership?
  8. The employee must approach the employer first. If not provided by the employer, he/she can approach the Regional Provident Fund Commissioner of the PF office.

  9. Is there any age restriction for an employee to become a member of EPF?
  10. No, there is no age restriction for an employee to become a member of the Provident Fund. However, if the employee has already crossed the age of 58 years, he/she cannot become a member of the Pension Fund.

  11. Can an apprentice become a member of the EPF?
  12. No, an apprentice cannot become a member of the EPF, but he/she must enroll for EPF as soon as they stop being an apprentice.

  13. Can an employee join EPF directly?
  14. No, an employee cannot join EPF directly. He/she must work for an organisation that is covered under the EPF & MF Act, 1952.

  15. Can an employee opt out of EPF?
  16. No, an eligible member cannot opt out of EPF.

  17. How is the PF amount recovered from defaulting members?
  18. Prosecution under Section 14 of the EPF & MP Act, 1952, realisation of dues from debtors, attachments of bank accounts, attachment and sale of properties, and detention and arrest of the employer are some of the ways the PF amount is recovered from employers.

News About EPF

  • Retro taxation on interest earned for EPF/GPF will not be applicable for contributions of more than Rs.2.5 lakh

    For the interest of more than Rs.2.5 lakh earned annually contributed to the EPF or the GPF will not be taxed according to Expenditure Secretary, TV Somanathan.

    To add, he also mentioned that the GPF and EPF interest will be directed to a separate sub-account if it exceeds Rs.2.5 lakh annually. The primary balance which will include the past balance will be tax-free and the interest will not have to be declared.

    09 Feb 2021

  • Union Budget 2021 proposals that can impact individual taxpayer savings

    Here are the latest Union Budget proposals that could impact individual taxpayer's savings: The interest on the employee’s share of contribution to the Employees' Provident Fund (EPF) on or after 1 April 2021 will be taxable on withdrawal if it exceeds Rs.2.5 lakh in one year. This will result in more tax liability for those who make higher contributions, such as High Net worth Individuals (HNI). It may also discourage contributions to voluntary provident fund (VPF).

    Proceeds from the Unit Linked Insurance Plans (ULIPs) that were issued on or after 1 February 2021 will be taxable in the form of capital gains if the annual premium is more than Rs.2.5 lakh in a year(exception being if it is received on the death of the holder).

    For senior citizens aged above 75 who only earn income from bank interest and pension (from the same bank as where the pension is credited) are no longer required to file income tax returns.

    The tax exemption for affordable housing, which benefits middle-class homebuyers who are buying a home for the first time, will be extended for one year.

    Taxpayers will get relief from having to estimate dividend income during payments of advance tax which will now have to be paid only when the dividend is declared or paid by the firm. This will help save interest on late payments due to difficulties in estimating the advance tax.

    04 Feb 2021

  • Seafarers to receive pension benefits, gratuity and PF allowances

    Around 4 lakh seafarers who are working onboard Indian or foreign-flagged ships may soon receive the provident fund, gratuity and pension benefits after the long-pending demand was given the ‘in-principle’ approval mark.

    The Board of Trustees of the Seamen’s Provident Fund Organisation which is headed by Amitabh Kumar has backed the demand in the meeting. According to him, an ‘in-principle’ decision was made by the SPFO Board of Trustees to extend benefits to all the seamen of all ranks working at Indian or foreign-flagged ships.

    In the previous year, around 25,000 seafarers had petitioned the Prime Minister for these benefits during the COVID-19 pandemic.

    14 Jan 2021

  • EPF-registered companies with more than 1000 employees to continue to get 24% incentives

    Companies registered with the Employees’ Provident Fund (EPF) with more than 1,000 employees during the wage subsidy scheme will continue to receive the incentive of 24% that was announced in November 2020. The scheme was applicable to new employees as well as those who lost jobs between March and September 2020 who were joining a new job during the duration of the scheme. There is a cap on salary of Rs.15,000 per month and is for 24 wage months. There are conditions, however, such that the number of employees as the reference base should be retained to continue availing the subsidy. However, companies that enrolled for the subsidy scheme with more than 1,000 EPF members already by the end of September 2020 would only receive a subsidy of 12% of the employees’ share. The Rs.22,810-crore scheme, part of the Atmanirbhar Bharat Rozgar Yojana, will count employees who are added to the payroll between 1 October 2020 and 30 June 2021. Under the scheme, employers are not supposed to deduct the EPF contribution of 12% from the workers’ salaries. Any violation in this regard will attract legal action. Staffing firms or those that provide manpower to principal employers are not supposed to claim the 12% EPF share if the subsidy has already been claimed by the principal employer. The claim for the incentives has to be done within 60 days of a wage month.

    07 Jan 2021

  • EPF subsidies announced for companies that make new hires in the post-Covid economy

    The finance minister Nirmala Sitharaman announced the launch of Aatma Nirbhar Bharat Rozgar Yojana, a subsidy scheme that provides subsidies in the Employees’ Provident Fund (EPF) component of salaries for establishments that hire new employees for establishments that hire new employees in the post-Covid economy. This subsidy is applicable for up to 2 years from the date of employment. This is for organisations that are registered with the Employees’ Provident Fund Organisation (EPFO). It will be provided for having a monthly salary of less than Rs.15,000. The total of 24% of wages will be provided to such organisations, which includes the employee’s contribution of 12% and employer's contribution of 12%. The scheme is also applicable for EPF members with monthly salary of less than Rs.15,000 who left employment due to the COVID-19 pandemic from 1 March 2020 and got employment on or after 1 October 2020. The Aatma Nirbhar Bharat Rozgar Yojana is applicable if a minimum of two new employees are added in organisations that have up to 50 employees. Those with more than 50 employees will have to add a minimum of five new employees to be appliable for the scheme which will run till 30 June 2021.

    19 Nov 2020

  • WhatsApp helpline number launched for PF subscribers

    Retirement fund body EPFO has launched a WhatsApp helpline service which will help in speedy redressal of grievances of its customers. This service will allow the subscribers to get in touch directly with EPFO's regional offices at a more personal level. The WhatsApp helpline service is now available in all the 138 regional offices of EPFO.

    EPFO has grabbed the opportunity to use technology as a medium to reach their customers directly as WhatsApp has emerged as one of the biggest platforms for communication.

    Subscribers now can file grievance or get their queries cleared by sending a WhatsApp message on the helpline number.

    The helpline number looks to make the customers more self-reliant by taking a digital approach, and hence reducing intermediary's dependence. To ensure that the query is resolved at the earliest, each regional office is equipped with a dedicated team of experts.

    14 Oct 2020

  • EPFO interest to get credited by Diwali

    The first installment of the 8.5% interest from the Employees’ Provident Fund Organization (EPFO) that is supposed to be credited for the financial year 2019-2020 will be credited by Diwali. In September, the EPFO central board had made a decision to pay the interest for 2019-2020 in two installments. The payment of the second installment will be 0.35% interest. This will be credited by December.

    13 Oct 2020

  • EPFO to pay 8.5% to its subscribers in two instalments

    On Wednesday, Employees’ Provident Fund Organization (EPFO) central board stated that it will pay interest of 8.5 percent to its subscribers in two instalments for the financial year 2019 – 20. Subscribers will be paid interest of 8.15 percent first while the remained 0.15 percent will be paid in December. The organization stated that subscribers can check their passbook by visiting the EPFO website or by downloading the UMANG app from Google Play Store or iOS store.

    25 Sept 2020

  • 8.45 lakh new enrolments recorded by the EPFO in July

    The number of new enrolments to the EPFO increased to 8.45 lakh in the month of July. In June, the number of new enrolments was at 4.82 lakh. There has been an increase in new enrolments when compared to the same time last year. The net enrolment for the month of June was revised by the EPFO from 6.55 lakh to 4.83 lakh. In March 2020, the net enrolments were at 5.72 lakh. The number of new subscribers that have been added to the EPFO for the financial year 2019-2020 was at 78.58 lakh. In the previous financial year, the total was at 61.122 lakh. Since April 2018, the payroll data of any new subscribers have been released by the EPFO.

    22 Sept 2020

  • You will now get your provident fund interest in 2 installments

    The central board of the Employees’ Provident Fund Organisation has made an announcement that they will pay out 8.5% interest to all their subscribers (year ended 31 March) and 8.15% from the debt investments. 0.35% will be paid from equity.

    While a few board members had gone on to explained that this the interest on provident fund be paid in two instalments, the labour ministry-controlled EPFO had explained that the central board of trustees has recommended an 8.5% payout.

    A note which was released had said that it will comprise of 8.15% from debt income and the remaining 0.35%, will be from the sale of ETFs (exchange-traded funds). One must note that this will be subject to redemption by 31 December 2020.

    17 Sept 2020

  • EPFO offers an interest rate of 8.5% per annum

    The Employees’ Provident Fund Organisation has decided the interest rate for FY19-20 which will be 8.5% per annum on the provident fund. The EPFO will be offering 8.15% per annum and 0.35% will be offered in December.

    EPFO had confirmed earlier that it had settled claims worth Rs.94.41 lakh since 1 April 2020. COVID advance amounted for 75% and 79% illness claims were settled for the subscribers of the PF scheme. The EPFO has also settled 32% more claims compared to April-August 2019).

    The Ministry of Labour and Employment stated that the organisation sped up the settlements of COVID advances and other illness-related claims to ensure that their members can sustain themselves during the pandemic.

    11 Sept 2020

  • IT Employees avail EPF advances under Covid

    Around 33,745 employees at TCS, have now availed Covid-19 advances which have amounted to a total of Rs.1.5 crore from the employees’ provident fund (EPF) of April-July. After the outbreak, EPFO had offered its members an opportunity to take an advance which is not exceeding three months’ dearness allowances and wages.

    Remaining in the administrative control of the Employees’ Provident Fund Organisation (EPFO), the exempted establishments manage their provident fund accounts of the employees. They keep the money and transfer the pension portion to the EPFO.

    1,550 establishments belonging to public, private and co-operative sectors manage around Rs.50,000 crore corpus among them. Big companies will apply to EPF for exemption from the requirement to deposit the EPF contributions with the EPFO. The EPFO data had shown among the top five private exempted establishments in terms of the number of employees who have gotten the advance benefit, three belong to the IT sector – HCL, Infosys and TCS.

    08 Sept 2020

  • Indian Government mulls options to open up EPFO subscription for all self-employed people

    The government plans to open up the key social security scheme — the Employees’ Provident Fund to self-employed people, and this is a move that can expand security coverage to over 90% of workers who do not fall under any social security scheme at present. Now, employees of organisations having a minimum 10 employees are now eligible to subscribe to the provident fund and also pension schemes.

    With the move doctors, lawyers, chartered accountants and other self-employed individuals will be able to subscribe to the Employees’ Provident Fund Organisation, which manages the retirement corpus of about 60 million employees. Making the EPFO individual-centric rather than establishment-centric is under examination.

    08 Sept 2020

  • UMANG’s app usage jumps 180% during Covid-19 pandemic

    The government’s mobile application for ‘'new age governance’', the UMANG app, had 180% jump during the months of April to July, providing users access to 16 different services. This was reported by the Employees’ Provident Fund Organisation (EPFO), the government’s retirement fund organisation. During the period from April to July 2020, through the UMANG app, more than 11 lakh EPFO claims had been filed successfully. From December 2019 to March 2020, the number of claims filed was 3.97 lakh, through the same app. Using their UAN number and mobile number that is registered with the EPFO, a member of the EPFO can access 16 different services through this app. These services include everything from raising a claim to tracking it and verifying the status of the claim. The app has helped users to avoid visiting a physical location of the EPFO offices for these services and thereby maintain social distancing during the Covid-19 pandemic. The most frequently used services of the app were eKYC services, UAN activation, updation of the Jeevan Praman Patra service, and viewing of the pensioner’s passbook and general passbook. The EPFO accounts for 90% of the usage of the UMANG app.

    10 Aug 2020

  • 8 million people withdrew EPF during April to July amounting to Rs.30,000 crore

    According to sources, around Rs.30,000 crore has been withdrawn by 8 million people between April and July who had subscribed to the Employee Provident Fund Organisation. The EPFO manages a sum of Rs.10 lakh crore which is built on the backs of mandatory contributions by close 60 million subscribers who are salaried and their employers. This significant withdrawal will impact the earnings of the fund in FY21.

    The loss of jobs due to the pandemic along with the salary cuts and other medical expenses has seen a higher sum withdrawn between April and July (Till the third week) compared to the previous years. Around 3 million beneficiaries have withdrawn more than Rs.8,000 crore under the COVID window.

    Apart from this, the remaining Rs.22,000 crore was under general withdrawals by 5 million subscribers which were mainly under medical advance, according to EPFO officials.

    29 Jul 2020

  • EPFO states 3.18 lakh jobs created in the month of May

    The net new enrollments for the Employees’ Provident Fund Organisation increased to 3.18 lakh in May compared to 1 lakh in the month of April. According to the official data, the employment status in the formal sector during the COVID-19 has shown an incline.

    The official employment data for April has been revised to Rs.1,00,825. The provisional employment data released by the EPFO in the previous month showed the net new enrollments were at Rs1.33 lakh. Due to the pandemic, the net new enrollments for the EPFO has dipped from 10.21 lakh in February to Rs.5.72 lakh in March.

    The EPFO had added around 1.39 new subscribers in the previous financial years and the net addition to their subscriber base increased to Rs.78.58 lakh in FY20 from Rs.61.12 lakh in FY19.

    21 Jul 2020

  • Government to pay EPF contribution for June-July-August 2020 for eligible organisations

    As part of the economic stimulus package announced by the Government of India in response to the coronavirus pandemic, in order to boost the economy, the Finance Minister announced extended support to the Employees' Provident Fund for the months of June, July, and August 2020. The government will pay the 12% of employer and 12% of employee contribution for the next three months. This will come under the Pradhan Mantri Garib Kalyan Package. This is for eligible establishments which have less than 100 employees and where 90% of employees have a monthly salary of up to Rs.15,000.

    This will provide a liquidity relief of Rs.2500 crore to 3.67 lakh establishments for 72.22 lakh employees. This was given earlier for the months of March, April, and May 2020 but will be extended for the next 3 months too.

    For organisations that are not eligible for the above support, the statutory PF contribution is being reduced from 12% to 10% for the next 3 months. This will increase liquidity for both employers and employees.

    However, state PSUs and CPSEs will continue to pay 12% contribution as employer contribution to the EPF.

    09 Jul 2020

  • EPFO may reduce the interest rate of 8.5% previously declared for FY20

    The Employees Provident Fund Organisation may reduce the interest rate of 8.5% which was declared for FY20 due to dipping return on investments and slow cash flow. This move will lower the payout on retirement savings of around 60 million people who have subscribed to this scheme.

    The Finance, Investment and Audit Committee of the EPFO will be meeting to assess the situation and its ability to pay the declared interest. The 8.5% interest rate was declared in the first week of March and has not been approved by the Finance Ministry and the Labour Ministry can notify the rate only if the rate is approved by the former.

    Since March, the government has announced a series of provident fund-related relief measures to help employees and employers overcome the impact of COVID-19 on the economy. The provident fund contribution was lowered from 12% to 10% of the basic pay of employees and employers for 3 months.

    The subscribers of EPF were also able to avail non-refundable withdrawals of three months of basic salary or 75% of their total contribution to the PF and help them out with liquidity during the time of lockdown.

    In April and May, the EPFO had settled 3.61 million claims which amounted to Rs.11,540 crore and half of these claims amounting to 1.55 million which amounted to Rs.4,580 crore was related to the recently introduced COVID-19 advance under the Pradhan Mantri Garib Kalyan Yojana.

    26 Jun 2020

  • EPFO launches new AI tool for claim settlements in regard to WPF withdrawals

    The number of EPF withdrawal requests has gone up significantly during the nationwide lockdown period. The EPFO has been overburdened with the processing of these claims. This has led to the launch of a brand new AI tool which will help in settling these claims.

    With the implementation of this new tool, the EPFO is now able to settle more than 80,000 claims in a day which is going up to a worth of about Rs.270 crore. At present, the EPFO has more than 6 crore active members which consists of employees from both organised and semi-organised sectors in India. If the EPFO uses the AI tool to process non-COVID related claims as well, then the time taken for claim settlement can be expected to come down to a great extent in the future.

    10 Jun 2020

  • 6.5 lakh employers and 4.3 crore employees to benefit from the new EPF rules

    Union Finance Minister Nirmala Sitharaman in an announcement last week stated that the statutory provident fund contribution by the employers as well as employees will see a reduction of 2% for the next three months. The reduction in the rates mean that the contribution will drop to 10% from the existing 12%. It will impact the in-hand salary of the employees and also provide relief to companies when it comes to payment of provident fund dues. The move which is expected to introduce liquidity of Rs.6,750 crores to employers and employees over the next three months and is slated to benefit 6.5 lakh employers and 4.3 crore employees.

    The new EPF rules will not be applicable for workers eligible for 24% EPF support under PM Garib Kalyan Package. Central public sector enterprises and state PSUs will also continue to contribute 12% as employer's contribution towards EPF.

    It must be noted here that the Pradhan Mantri Garib Kalyan Package has also seen an extension of three months and shall continue till August. The extension will provide liquidity relief benefit of Rs.2,500 crore to 72.22 lakh employees and 3.67 lakh employers.

    19 May 2020

  • PF Withdrawal Rules due to COVID-19

    On 26 March 2020, the Government of India (GOI) has made an announcement to fight against the impact of the COVID-19 virus on people in India. The announcement has been made in regard to the withdrawal of provident fund (PF) from the respective Employees’ Provident Fund (EPF) Account.

    The Government has announced that it will make amendments in the rules of the PF withdrawal. As per the new announcement, if a person is facing financial constraints in light of the corona virus breakout and the country-wide lockdown, he or she will be allowed to withdraw an amount from the respective EPF account. However, as per the new rule, the amount should not exceed the individual’s three-month worth of basic salary and dearness allowance (DA). In addition to that, the Government has also mentioned that the maximum amount which can be withdrawn in this case can be equal to the three-month basic and DA or 75% of the credit balance in the account, whichever is lower. To know more about the withdrawal process, you can get in touch with your employer or just visit the official EPF website.

    06 May 2020

  • Restored pension to be disbursed by the EPFO from the month of May

    Individuals who have opted for commutation during at the time of their retirement will be given full pensions from the month of May by the Employees’ Provident Fund Organisation (EPFO).

    Commutation is provided to pensioners who convert a certain amount of their monthly pension. The amount is paid as a lump sum at the time of retirement. The full amount is restored after 15 years. The announcement in regards to the restoration was made in February. Around 6,30,000 pensioners will be benefited from this move. The move will cost the government around Rs.1,500 crore at a time the country is facing a resource crunch due to the coronavirus outbreak and the subsequent lockdown. The EPF and the EPS scheme are handled by the EPFO, which in turn comes under the Labour Ministry. The process of aligning the software has been done quicker during the time of the coronavirus outbreak. The main aim of updating the software is to ensure that the pension is processed quicker. According to a senior government official, even though the notification was given in February, it took months for the software to be updated. The official further added that it is ready now for disbursal. Current EPFO members, as not eligible for commutation under the EPF rules.

    06 May 2020

  • Firms may be provided EPF relief for the month of April as well

    Employers who are registered under the Employees’ Provident Fund Organisation (EPFO) may be allowed to defer their provident fund contributions for another 30 days. The main reason for the move is to help firms during the coronavirus outbreak and the subsequent lockdown.

    According to various sources, the Ministry of Labour and Employment is considering the proposal that will provide about Rs.30,000 crore in liquidity, Rs.15,000 crore for each month. According to the Central Provident Fund Commissioner, Sunil Barthwal, a further announcement will be made after 3 May 2020. About 6.6 lakh establishments made contributions towards the EPFO scheme last year. In the financial year 2018-2019, Rs.1,47,503 crore was contributed towards the EPFO by firms. For the financial year, a total of Rs.1,63,176 crore was contributed towards the scheme. Employers must submit their part of the contribution towards the scheme within the first 15 days of every month. Only employers who paid salaries will be able to defer their EPF payments for the month of March. They will also avoid penalties and interest charges if the payments are made by 15 May 2020. The main aim of the move is to ensure disruption in employment due to the coronavirus outbreak.

    27 Apr 2020

  • EPF rules relaxed to help tide over hardship caused by lockdown

    Union Finance Minister Nirmala Sitharaman has announced that the rules related to Employees’ Provident Fund have been relaxed to help tide over hardship caused by the coronavirus lockdown. EPF subscribers will now be able to withdraw either 75 percent of the provident fund balance or 3 month wages as a non-refundable advance, whichever is lower. The move is expected to benefit around 4.8 crore employees.

    She added that the government will be paying the Employees' Provident Fund (EPF) contribution, both of employer and employee which comes up to 24 percent of an employee's basis salary for the next three months. This is applicable to only those establishments which have up to 100 employees and 90% of them earn less that 15,000.

    07 Apr 2020

  • Process to apply for an advance of PF because of COVID-19

    A set of Frequently Asked Questions (FAQs) has been released by the Employees’ Provident Fund Organisation (EPFO) to help individuals who wish to apply for PF Advance.

    It is important for individuals to know the amount of money that can be withdrawn, if the amount that is withdrawn is taxable, and the companies that are eligible. Since the withdrawal is an advance, the money will not have to be deposited back into the account. On 26 March 2020, the government relaxed certain rules of the EPFO to allow employees to withdraw a certain amount of money due to the coronavirus outbreak. The new PF advance rule is applicable to all establishments across India. Up to 75% of the money available in the account or 3 months of the basic salary and dearness allowance, whichever is lesser, can be withdrawn. You will need to login to the official website of the EPFO with the help of the UAN and password. Next, click on ‘Claim (Form-31, 19, 10C & 10D)’, which can be found under ‘Online Services’. Next, enter the last four digits of the bank account number and verify it. Next, click on ‘Proceed for Online Claim’. Select ‘PF Advance (Form 31)’. Choose the purpose as ‘Outbreak of pandemic (COVID-19)’. Enter the amount that you require and the address. Upload a copy of the cheque. Click on ‘Get Aadhaar OTP’ and enter the OTP to complete the process. You can also apply for the PF Advance by using EPFO’s mobile app as well.

    07 Apr 2020

  • EPF scheme will cover just 16% of the total subscribers

    The Union government has announced that it will foot all Employees’ Provident Fund (EPF) bills of those companies who are hiring up to 100 workers over the next three months. They will also allow workers in the formal sectors who are subscribed to the EPFO to withdraw three months’ worth PF during the coronavirus.

    This decision was a part of the Rs.1.70-trillion Pradhan Mantri Garib Kalyan (PMGK) package launched by the Finance Minister, Nirmala Sitharaman. This was a move to provide relief to all workers in the formal sector.

    Both employers and employees contribute around 12% of wage towards a worker’s provident fund account. An EPFO official had said the money will be reimbursements, and this indicates that the employers will continue providing wages to its employees for the next three months. The official had also added that an employer has to submit proof of payment of three months’ salary without having paid for the PF amount.

    All workers who earn Rs.15,000 every month in businesses and have less than 100 workers are now at risk of losing their jobs.

    The government will be allocating Rs.5,000 crore towards the PF reimbursement scheme. This will benefit 7.9 million workers who are now employed in 377,000 establishments. The EPFO now has 563,000 establishments under its wings and these are employing around 48 million workers. They make provident fund contributions frequently. Around one-third of the establishments and 84% of the workers that have been registered under the EPFO will not be eligible for this PMGK scheme.

    02 Apr 2020

  • Government to contribute EPF amount for 3 months under coronavirus stimulus package

    The Government of India, in its economic stimulus package for the coronavirus pandemic, has announced that for the next three months it will provide 24% towards the Employees Provident Fund Organisation (EPFO) contribution (which is 12% of the employer’s contribution and 12% of the employee’s contribution). This is applicable for organisations that have an employee strength of up to 100 people and where 90% of the employees earn up to Rs.15,000 p.m. This will be in effect from 1 April 2020. This will ensure continuity of the EPF account during this time of economic crisis.

    26 Mar 2020

  • Interest rate of 8.65% on EPF may be retained for 2019-2020

    The Labour Ministry has stated that it aims to maintain the interest rate of 8.65% for the current financial year for deposits made by more than 6 crore subscribers of the Employees’ Public Provident Fund (EPFO). The Central Board of Trustees, which is the apex decision making body for the EPFO has scheduled a meeting to discuss this on 5 March 2020. The current interest rate of 8.65% was provided during the financial year 2018-2019 and it was the same in the year 2016-2017. The labour ministry requires the finance ministry’s agreement to decide on interest rates for the EPF.

    04 Mar 2020

  • Higher pension for 6 lakh pensioners who chose commutation

    Pensioners who are under the Employee Provident Fund (EPF) scheme, who had chosen to get part of their pension commuted when they retired, will now get their pension fully restored after 15 years of retirement has passed. This means a significant pension increase for those who retired before 26 September 2018, and who had chosen to get a partial commutation of their pension. The total number of such pensioners amounts to approximately 6.3 lakh. For people whose day of retirement was 1 April 2005 would receive a higher amount as pension on 1 April 2020. Commuted pension is pension availed as a lumpsum equivalent to not more than one-third of the monthly pension. The remaining two-third would be availed as a monthly pension. On commutation, the one-time lumpsum would be 100 times the monthly pension that was commuted or the maximum one-third of the monthly pension. While this was discontinued from 26 September 2008, under the new rule, the individual would get the full pension monthly after 15 years of retirement and from the date of receipt of the commuted pension.

    28 Feb 2020

  • Over the last 2 years, more than 3 crore subscribers have joined the EPF scheme

    In the last two years, more than 3 crore subscribers have joined the government’s Employee’s Provident Fund (EPF) scheme.

    According to a statement made by the National Statistical Office, Ministry of Statistics & Programme Implementation, the number of new subscribers that have joined the scheme from September 2017 to December 2019 is 3,12,09,293. The level of employment in the formal sector is given by the EPF data. Since April 2018, employment-related statistics have been released by the Ministry that covers the period from September 2017. The data that is provided is based on the number of new subscribers that join the National Pension Scheme, Employees’ State Insurance Scheme, and the Employees’ Provident Scheme. Over 84 lakh subscribers have joined the scheme from September 2017 to March 2018. More than 1 crore new subscribers joined the scheme from April 2018 to March 2019. In December 2019, the number of new subscribers to join the scheme was 7,82,139. Establishments that have more than 20 employees must join the EPF scheme. Under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, EPF is a mandatory savings scheme. Even if certain establishments have less than 20 employees but are notified by the Central Government, they can join the scheme. Under the scheme, there is a pay ceiling of Rs.15,000 per month.

    27 Feb 2020

  • Excess in the employer’s contribution towards EPF and NPS may lead to double taxation

    As per the Budget 2020, a limit has been proposed for the employer’s contribution towards an employee’s superannuation, NPS, and EPF account. According to the proposal, in case more than Rs.7.5 lakh is contributed in a financial year, the employee will be taxed.

    The main aim of the proposal is to restrict tax-free benefits for employees who fall under the high income bracket. Contributions made towards the EPF, NPS, and the superannuation account fall under EEE. Therefore, no tax can be levied for the contributions, interest generated from the contributions, and withdrawal of the amount up to a certain limit. However, the excess contribution made by the employer could lead to double taxation. Under Section 17 of the Income Tax Act, the definition of the employee’s salary is provided. As per the current income tax laws, any contributions in excess of Rs.1.5 lakh towards the superannuation account is taxed under Section 17 (2). Excess contributions made towards the NPS and EPF accounts are taxed under Section 17 (1). Therefore, in case of contributions in excess of Rs.7.5 lakh, individuals may be taxed under Section 17(1) and Section 17(2) of the Income Tax Act.

    19 Feb 2020

  • EPF soon to be taxable for those with high income

    You may have to shell out a higher tax on your Employee Provident Fund (EPF), National Pension System (NPS) and superannuation fund if you have a high income.

    Finance Minister Nirmala Sitharaman during the budget introduced a cumulative upper ceiling of Rs.7.5 lakh for the three investments under which you were liable to receive tax benefits.

    From 1 April 2021, the combined upper limit of Rs.7.5 lakh as a contribution from the employer to NPS, EPF, or superannuation fund in a calendar year will be taxable. Any amount excess of the set cumulative ceiling amount will also be taxable.

    The budget proposed that the interest and principal earned will also be liable to be taxed.

    06 Feb 2020

  • General Provident Fund rates unchanged for January to March quarter

    The General Provident Fund (GPF) interest rates have been left unchanged at 7.9% per annum by the Department of Economic Affairs, which comes under the Ministry of Finance, for the quarter January to March. This will be applicable for similar funds as well. The GPF is only for government employees. A percentage of the salary is contributed to the Provident Fund. The total amount that is accumulated throughout their employment tenure is then paid out at the time of retirement. The interest rates on the GPF are revised at the start of each financial year’s quarter after revision of interest rate on other small savings schemes. The interest rate of 7.9% per annum will be applicable for not just the General Provident Fund but also for 9 other funds which are: the Contributory Provident Fund, the State Railway Provident Fund, the All India Services Provident Fund, the Indian Ordnance Department Provident Fund, the General Provident Fund for the defence services, the Armed Forces Personnel Provident Fund, the Defence Services Officers Provident Fund, the Indian Naval Dockyard Workmen’s Provident Fund, and the Indian Ordnance Factories Workmen’s Provident Fund. The PPF interest rate is compounded annually.

    29 Jan 2020

  • 8.33% of employer’s contribution to EPF is directed to EPS account

    Most employees do not know that a portion of the employer’s contribution to the Employee Provident Fund (EPF) account goes into Employee Pension Scheme (EPS) account. So, when they switch jobs and opt for transferring their EPF account to the new employer, the accumulated money which includes the employer’s contribution and their contribution is transferred to the PF account opened by the new employer. As per the EPF regulations, 8.33% of the employer’s contribution goes towards the EPS account and only 3.67 % is added to the EPF account of the employee, along with the employee’s contribution which is 12% of their basic salary. The regulation also states that an individual is entitled to receive pension benefit only once he/she completes 10 years of service. The pension amount will depend on the service duration, period of contribution, and last drawn wages. To transfer the EPF account, the employee has to submit Form 13 and once that is done the PF balance is transferred to the new EPF account along with the transfer of service period record.

    22 Jan 2020

Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

reTH65gcmBgCJ7k
This Page is BLOCKED as it is using Iframes.