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 8.10% 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
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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 8.10%. 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.

EPF Joint Declaration Form

An EPF joint declaration form is a form signed by you, as an employee and your employer and the EPF joint declaration form is secure for correction of date of birth in your PF account, date of joining, name in UAN, your father’s name, and also the date of exit.

The details on the EPF joint declaration are as follows:

  • Father’s Name or Husbands Name
  • Name of Employee
  • Date of Birth of Employee
  • Provident Fund Account Number
  • Date of Leaving in Company
  • Joining Date in Company
  • Gender of the Employee

This is the format in which you can view and download the EPF joint declaration:

  • Joint Declaration by the Member or Employer
  • Date of Submission
  • To the Regional PF commissioner
  • Mention your local PF commissioner address
  • The Subject is the same as your Joint Declaration by Member and the Employer
  • Enter your name and the company name
  • Write your Establishment Code and also the name of the company
  • Your UAN number
  • PF Number

Documents you Have to Attach with PF joint declaration

  • Document proof with the reason for exit
  • For the change in date of birth, you have to submit your school certificate, mark sheet Birth certificate or passport
  • For name change, attach documents which have your name on it
  • In case of Date of Joining or Date of Leaving, you have to submit your joining letter or leaving letter
  • All documents that are verified must be attached with the EPF joint declaration form and signed.

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

  • EPFO has added 14.12 lakh subscribers

    The retirement fund body, EPFO had announced that it has added 14.12 lakh subscribers in February 2022. This is 14% over 12.37 lakh enrolled in the same month one year ago. The Employees' Provident Fund Organisation (EPFO) has shown that the net enrolments between April 2021 and February 2022 had reached 1.11 crore. In the financial year 2020-21, the net enrolments was 77.08 lakh, which was lower than 78.58 lakh added in 2019-20

    27 April 2022

  • Plans for an Increase in Minimum Wage in EPFO Supported by a Panel

    A high-level committee has backed a proposal to increase the maximum monthly income of the Employees' Provident Fund Organisation (EPFO) from Rs.15,000 to Rs.21,000 per month. The committee has noted, however, that the government can implement the raise at a later date after considering all inputs. When implemented, the plan will add an estimated 7.5 million new workers to the system while also making changes to the current system.

    19 April 2022

  • Guidelines Issued on How TDS on Interest will be Deducted for EPF Contribution of more than Rs.2.5 Lakh

    The Employees' Provident Fund Organisation (EPFO) has released guidelines on the taxation of interest received on EPF accounts with contributions exceeding Rs 2.5 lakh in a financial year. TDS on interest generated on excess contributions will begin on 1 April 2022, according to an EPFO circular issued on 6 April 2022. The TDS will be deducted when interest is credited to the EPF account. If a final settlement or transfers are in the works, TDS will be deducted at a later date in the case of the final settlement.

    11 April 2022

  • Operational guidelines for taxing EPF have been released

    A year after the government imposed a new tax on income derived from yearly Employees' Provident Fund (EPF) payments exceeding Rs.2.5 lakh, operational guidelines for implementing the levy were released on Wednesday. The EPF Organisation (EPFO) said that individuals who fail to link their Permanent Account Number (PAN) to their retirement savings accounts will have a 20% tax deducted from their annual income on contributions over Rs.2.5 lakh.

    A taxable account, as well as a non-taxable account, will be maintained by the EPFO for all individuals who contribute more than Rs.2.5 lakh. The tax deduction at source (TDS) will be decreased to 10% for individuals who link their PAN with their EPF accounts. In case the calculated TDS amount is up to Rs.5,000, TDS will not be deducted from the interest credited to such EPF accounts.

    8 April 2022

  • New rules of income tax from 1 April, 2022

    From 1 April if the employee's contribution to the Employees' Provident Fund (EPF) account is over Rs.2.5 lakh in the previous year (2021-22), then the interest that you earn on the excess amount is taxable. Under section 80DD there is a tax break for the care of disabled persons. There is a new TDS rule on immovable property (buying and selling).

    1 April 2022

  • EPFO asked PF members to complete e-nomination by next week

    The Employees Provident Fund Organization (EPFO) has asked all its Provident Fund (PF) subscribers to complete their e-nomination procedures by 31 Match. It also announced that the subscribers who fail to complete the e-nomination process will not be able to avail certain benefits provided by the retirement body.

    The PF holders need to register nominations to ensure benefits like insurance, pension, and PF to safeguard them.

    30 March 2022

  • PF accounts will have new rules from 1 April 2022

    From 1 April 2022, PF accounts that are already in existence will be divided into non-taxable and taxable contribution accounts. Closing accounts will also be included in non-taxable accounts. As per the IT rules, a new section, 9D, will be inserted. The new section will come with a new tax in case contributions of the employee are more than Rs.2.5 lakh per year. The main aim of the division of accounts is to help in calculating tax.

    29 March 2022

  • Due payment of corporation employees to be made under pf account and NPS

    The due payment of 55,000 employees of the North Delhi Municipal Corporation will be made under the National Pension Scheme and Provident Fund (PF) account. Nigam Sadan also approved the decision in the recently held budget session of the Northern Corporation. Employees holding a PF account will be paid the arrears on the basis of the 7th Pay Commission.

    The arrears will be credited to the general fund accounts of the employees. In addition to this, the arrears will be paid to the employees who have retired on a priority basis or passed away.

    25 March 2022

  • In January 2022, EPFO Added 15.29 Lakh Subscribers

    The Employees Provident Fund Organisation (EPFO) added 15.29 lakh net subscribers in January 2022, according to provisional payroll data released on Sunday, 20 March 2022. A month-over-month comparison of payroll data reveals a net addition of 2.69 lakh net subscribers in January 2022 as compared to the net additions in December 2021, according to a press release from the Ministry of Labour and Employment. Out of the total 15.29 lakh net subscribers gained during the month, about 8.64 lakh new members were registered for the first time under the social security provisions of the EPF & MP Act, 1952.

    23 March 2022

  • EPFO asks employers to make e-nomination of female workers easier

    The Employees' Provident Fund Organisation (EPFO) has requested that all female employees be e-nominated in order for the organisation to be recognised and awarded on International Women's Day, 8 March 2022.

    8 March 2022

  • EPFO is considering a new pension scheme for employees drawing salary above Rs.15,000

    The Employees Provident Fund Organisation (EPFO) is considering implementing a new pension scheme for employees who are earning Rs.15,000 and above.

    The said pension scheme will be for those who are not covered under the Employees' Pension Scheme 1995.

    However, there are various stakeholders concerned who are sceptical regarding this move as they fear that the EPF pension scheme may lose its relevance as a pension scheme based on investment rather than the one based on service period and salary and may not attract many people.

    A meeting is scheduled for 11 March and 12 March in Guwahati by the high-power committee of the EPFO where the new pension scheme will be looked into detail. If the committee shows a positive attitude towards it, then there is a possibility that it may get implemented in the near future.

    24 February 2022

  • LIC premium can be paid using EPF money by the members

    Members of the Employees Provident Fund Organisation or EPFO will be allowed to pay their LIC premiums using their EPF money. In this regard, it should be noted that the premium can be paid by the members only for the policies held by them in their own name.

    The members will be allowed to use the money from their EPF accounts to pay the premium for their LIC policy provided the balance in their EPF account is equivalent to at least 2 years' worth of LIC policy premium. The latest development will be beneficial to the EPF members who are facing a financial crunch owing to job loss or any other reason and thus continue the policy renewal.

    23 February 2022

  • Finance Ministry has agreed for an 8.5% EPF interest rate for FY21

    The Finance Ministry has given approval to the Employees’ Provident Fund Organisation (EPFO) to pay an interest rate of 8.5% to its subscribers on 29 October 2021. The decision was taken after the dearness relief (DR) and dearness allowance (DA) for government employees and pensioners received approval from the Union Cabinet.

    The Central Board of Trustees (CBT) suggested an interest rate of 8.5% in March for FY21. The Finance Ministry has approved the decision and the amount will be credited to the EPFO accounts in the next few days.

    18 November 2021

  • New EPF Withdrawal Rules

    Your provident fund balance can now be used by you, if you are a salaried person for buying property. For the withdrawal of the same for home construction, the land will have to be owned by the account holder of the provident fund, or by the spouse, or by both. The facility of provident fund withdrawal is available for members of the Employee Provident Fund Organization (EPFO) who work in the private sector. All the provident fund EPF account holders are now eligible for provident fund finance for the purchase of property. If you want to withdraw the provident fund amount for buying a plot or for constructing a house, you must have contributed in the provident fund account for the past five years. For buying land, the provident fund withdrawal needs to be either 24 months basic salary and the Dearness Allowance (DA) or the price of the plot (whichever is lower). For purchase of construction of home, you can withdraw 36 months basic salary and dearness allowance or the amount required for construction (whichever is lower).

    30 April 2021

  • EPF rule tweaked

    An amendment has been introduced by the Finance Minister Nirmala Sitharaman to raise the EPF threshold limit to Rs.5 lakh. You will now be exempted from paying tax if on the interest earned for contributions of up to Rs.5 lakh to your EPF. However, applicable tax will be charged for contributions beyond Rs 5 lakh.

    24 Mar 2021

  • Covid-19 pandemic results in closure of more than 6% of EPF accounts

    Approximately 6.5% of Employees’ Provident Fund (EPF) accounts were closed during the Covid-19 pandemic in the months of April to December 2020. Partial withdrawals doubled in number in 2020, at 1.3 crores, as opposed to the number in 2019, which was 54.4 lakh.

    17 Mar 2021

  • EPF interest rates (2020-21) to be announced on Thursday

    The Employees’ Provident Fund Organisation may announce the interest rate on provident fund deposits for 2020-21 this Thursday when the central board of trustees have their meet at Srinagar.

    There were a lot of speculations that the retirement body will lower the interest rates on provident funds for 2020-21 after the economic downturn in 2020.

    Last year, in March, the EPFO had reduced interest rate on provident funds to a seven-year low of 8.5%. The board had said it will pay 8.5% interest to the subscribers for the year ended 31 March in two installments.

    03 Mar 2021

  • 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

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