EPF is the main scheme under the Employees’ Provident Funds and Miscellaneous Act, 1952. This scheme offers the institution of provident funds for factory employees and other establishments.
The employee and employer each contribute 12% of the employee’s basic salary and dearness allowance towards EPF. For the Financial Year 2019-2020, the rate of interest on EPF deposits is 8.65% p.a.
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.
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.
You can get your UAN through your employer. In case you are unable to do so, you can easily login to the UAN portal with your member ID and find the UAN.
How to login EPFO Portal?
- 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:
- The UAN card download and passbook download
- View the status of PF linking
- View member IDs
- View the status of PF transfer claim
- Edit personal details on the EPF portal
- Update KYC information
EPFO Employee Login:
The step-by-step process by which an employee can login to the EPF member portal is explained here. Employees have to login to the website, (https://www.epfindia.gov.in/site_en/index.php), using their 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. Once the employer logs in to the portal, it is possible to approve the KYC details of employees.
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.
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.
Check PF Withdrawal Online
It is possible to partially withdraw from the EPF account for the purchase of a house, wedding expenses, or medical expenditure. The withdrawal limits vary 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 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)
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.
EPF Interest Rate
The EPF interest rate for the financial year 2019-2020 is 8.65%. 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.
- 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.
Although it is not mandatory to update KYC on the EPFO portal, it is advisable to do so. This reduces the time for transfer of the EPF funds from one account to another. This will also be useful when the employee wishes to withdraw the EPF balance.
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.
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.
It is mandatory for the employee and the employer to make a EPF contribution. Each makes 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. However, 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|
Enrollment for the EPF Scheme in India
The employers handle the entire process for the employees’ registration towards EPF. However, if employers wish to enroll under the EPF scheme, there are some eligibility criteria that must be met, and a list of documents to be submitted.
Companies that are involved in the activities that are present in Schedule 1 of the EPF Act are eligible under the EPF scheme. The minimum number of employees that must be present under the organisation is 20.
Eligible organisations must submit the below-mentioned documents in order to register towards the EPF scheme:
- In case the organisation is a partnership firm, the partnership deed must be submitted.
- The registration certificate of the society along with a copy of the objectives and rules must be submitted for the registration of the society for the EPF scheme.
- Certificate of Corporation must be submitted for public and private limited companies. A copy of the Memorandum and Articles of Association must also be submitted.
- All companies must submit a copy of the balance sheet, employees’ salary details, first sales invoice, partition deed, PAN details, and income tax documents.
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|
Employees’ Provident Fund Organisation (EPFO) is one of the largest social security organisations on a global scale, as far as the volume of transactions and number of subscribers are concerned. The 2015-16 Annual Report of the organisation shows that it handles 17.14 crore accounts. The EPFO falls under the jurisdiction of the Ministry of Labour and Employment, Government of India.
FAQ’s On EPF
- Can an employer reduce the employer’s share of EPF contribution?
- How is EPF contribution calculated if the employee is paid on a daily or partly basis?
- Is it possible for the employee to contribute towards EPF after he/she quits the job?
- Whom should the employee approach if he/she is not given PF membership?
- Is there any age restriction for an employee to become a member of EPF?
- Can an apprentice become a member of the EPF?
- Can an employer also join the PF?
- Can an employee join EPF directly?
- Can an employee opt out of EPF?
- How is the PF amount recovered from defaulting members?
No, the employers cannot reduce their share of EPF contribution. Such a reduction is considered as a criminal offence.
The contribution amount is calculated by the salary that is paid in a calendar month.
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.
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.
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.
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.
No, an employer cannot join the PF.
No, an employee cannot join EPF directly. He/she must work for an organisation that is covered under the EPF & MF Act, 1952.
No, an eligible member cannot opt out of EPF.
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.
EPF Other Pages
- EPF Form 5
- Employees Deposit Linked Insurance Scheme
- EPF Form 11
- PF Limit
- PF Nomination Form
- PF Statement
- Form 2
- EPF Name Correction
- PF Account Number
- PF Withdrawal Forms
- SBI EPF Account
- EPF Account Withdrawal Fraud
- EPF Money after Resignation
- EPF Life Insurance
- 7 Ways to Check PF Account Balance
- EPFO into Equities