The Employees’ Provident Fund (EPF) Scheme
The Employee Provident Fund Scheme India was enacted in the year 1952, replacing the Employee Provident Fund Ordinance, 1951. The EPF scheme is now known as the Employees’ Provident Fund and Miscellaneous Act, 1952.
The administration of the Act is carried out by the Central Board of Trustees which comprises representatives of three parties viz. the government, employers and employees. The Board is assisted by the Employees’ Provident Fund organization (EPFO) which falls under the purview of the Government through the Ministry of labor and Employment.
The aim of the Employee Provident Fund(EPF) scheme is to promote retirement savings for employees across India. The Employees’ Provident Fund (EPF) is a corpus of funds built through regular, monthly, contributions made by an employee and his/her employer. The amount contributed to the fund is based on a fixed rate. Employees earn interest on their EPF balance. Both, the interest earned and the total amount withdrawn at maturity are tax-free, making this one of the most popular forms of long-term retirement savings among the working population in India. Besides retirement, funds accumulated in an employee’s EPF account can also be used at time of resignation or death. It also offers financial security in times of emergency and if an employee is rendered unfit for unemployment.
The EPFO, therefore, services an unusually large number of subscribers. This, coupled with the large number of associated transactions involved, ranks the EPFO among the largest organizations, globally. There are currently more than 5 crore members that the EPFO services. Under the Act, the EPFO operates three schemes in all viz.
- Employees’ Provident Fund Scheme, 1952
- Employees’ Pension Scheme, 1995 (which replaced the Employees’ Family Pension Scheme, 1971)
- Employees’ Deposit Linked Insurance Scheme, 1976
Under the Act, member employees are eligible for provident fund, pension and insurance benefits as per the above mentioned schemes.
Benefits of EPF Scheme
The EPF scheme is one of the most important savings schemes in India for many reasons. Key advantages are highlighted below.
Tax-free earnings: The interest earned on funds held in an EPF account is tax-free. Withdrawals at maturity/beyond 5 years are also tax-free (except in case of premature withdrawal). This helps optimize growth and returns on savings. Contributions made towards EPF are tax deductible u/s 80C of the Income Tax Act, 1956.
Financial Security: Funds in the account are not easy to withdraw and so savings is ensured.
a. Retirement - eventually, the amount collected provides financial security at time of retirement.
b. Emergencies - The funds are also useful in times of emergencies to meet certain requirements for which premature withdrawals are allowed in certain cases
c. Loss of income - If an employee for some reason cannot work any longer, these funds help tide over loss of income.
- Resignation - After 2 months of resignation employees can withdraw accumulated amounts in their PF accounts
- Death - the accumulated amount is passed on to the employee’s nominee providing them financial stability.
- Disability - If employees cannot work any longer, EPF Balance can be withdrawn to tide one over.
- Retrenchment or discharge - This where employees are laid off from work. PF savings can bridge the income gap till another job can be found.
Long-term savings option: This is a sound savings option for employees with long-term investment goals.
Source of funds: In times of need, EPF funds can provide an employee much needed liquidity. Funds can be borrowed to meet certain pressing needs such as medical, housing, marriage and education.
Pension: Under the Act, along with provident funds, an employer also contributes towards an employee’s pension fund which the employee can eventually use upon retirement.
Insurance: Under the Act, an employer also contributes towards an employee’s life insurance in the absence of a group cover, thereby ensuring employees are insured.
Universal access: Employees can transfer their accounts when they change employers and with the introduction of the Universal Account Number (UAN) they can now access their EPF accounts through a single-point.
New Features on EPFO portal
With the drive to make India a digitally developed nation, the government has been constantly introducing new and more convenient facilities to further the idea of creating paperless transactions throughout and increasing transparency in government procedures.
The labor ministry found that there were lakhs of inactive EPF accounts because each employee had more than one PF account owing to the number of job changes one had made. The government hence decided to allow employees to merge all PF accounts into one with the use of UAN (Universal Account Number). Added to this, EPFO services are made available on a new application named UMANG.
One Member – One EPF Account
Under the ‘Services’ tab on the EPFO portal, the ‘One Employee – One EPF Account’ link can be found. Clicking on the link will redirect you to a page where you can enter your phone number and then your UAN, after which you can provide details about all your previous PF accounts (Up to 10 PFT accounts at a go). With the help of this facility, you can consolidate all your PF accounts with the help of one unique 12-digit number called the UAN.
EPF Membership Eligibility
To avail benefits of the EPF scheme, employees have to become members of the provident fund.
- Employees are eligible for membership on the day of joining an establishment. This includes eligibility for provident funds, insurance and pension. Establishments with 20 or more employees have to provide PF to their employees.
- The Act does not apply to the State of Jammu and Kashmir.
An employee’s provident fund account is made up of contributions
- made by the employee him/herself and his/her employer
- at a fixed rate; predetermined
- on a monthly basis
- based on the employee’s basic pay + DA
- funds under the EPF scheme are invested as prescribed.
Currently, contributions are made at 12% but for the following establishments it is 10% i.e.
- establishments with less than 20 employees
- sick industries as identified by the BIFR
- establishments whose year-end losses are as much or more than their net worth
- jute, beedi, brick, coir and guar gum establishments
- establishments subject to a set wage limit; currently Rs.6,500
Employer’s Contribution to EPF
The minimum contribution is now set at 12% of Rs.15,000 = Rs.1,800 i.e. Rs.1,800 from the employee and Rs.1,800 from the employer. (It was earlier at 12% of Rs.6,500 p.m. = Rs.780).
While the entire contribution from an employee is directed towards his/her provident fund, a part of the employer’s contribution goes towards pension and insurance and also administration costs in the following proportions
12% of salary (basic + DA) total contribution = 8.33% to EPS and 3.67% to EPF
Additionally, 0.5% to EDLI; 1.1% to EPF administration costs and 0.01% to EDLI administration costs. This means the employer’s total contribution is 13.61%
EPF Interest Rate
The latest EPF interest rate stands at 8.8% p.a. (2015 - 2016). Interest rate for EPF deposits for the year 2017 - 2018 is 8.65%
- Balances held in the EPF account earn interest. Such interest earned is entirely tax-free. Interest is calculated and credited to the account based on a set rate of interest.
- As with many other state-run savings schemes, EPF interest rates are decided every year by the Indian government in conjunction with the Central Board of Trustees (CBT) who administer the Act in association with the EPFO. The rate announced is applicable for the year it is announced.
- The year for which EPF interest rates are applicable refers to a financial year i.e. April 1st of one year to March 31st of the following year. For e.g. for the period 2014 - 2015, the interest rate of 8.75% is applicable on EPF deposits from April 1st 2014 to March 31st 2015.
- Interest is calculated based on monthly running balances but credited on an annual basis, at the end of the year i.e. March 31st. Interest so credited is then added to the following month’s balance i.e. it is included in April’s balance for interest calculation.
- If an EPF account is deemed inoperative, interest will no longer be credited to it.
- Interest is not payable on withdrawn amounts.
- Interest is not payable on the amounts directed towards EPS by the employer.
Interest Rate (p.a.)
1952 - 1955
1955 - 1957
1957 - 1963
1963 - 1964
1964 - 1965
1965 - 1966
1966 - 1967
1967 - 1968
1968 - 1969
1969 - 1970
1970 - 1971
1971 - 1972
1972 - 1974
1974 - 1975
1975 - 1976
1976 - 1977
1977 - 1978
1978 - 1979
8.50% (i.e. 8.00% + 0.5% as bonus)
1979 - 1981
1981 - 1982
1982 - 1983
1983 - 1984
1984 - 1985
1985 - 1986
1986 - 1987
1987 - 1988
1988 - 1989
1989 - 2000
2000 - 2001
12.00% - till June 2001
11.00% - From July 2001
2001 - 2004
2004 - 2005
9.50% (i.e. 9.00% + 0.5% as Golden Jubilee Bonus )
2005 - 2010
2010 - 2011
2011 - 2012
2012 - 2013
2013 - 2015
2015 - 2016
2016 - 2017
How to calculate interest on EPF Balance
The interest rate is declared on a per annum basis but the interest is calculated for every month. The interest rate for a month is the per annum rate divided by 12 months. E.g. if you consider an EPF interest rate of 12% p.a. then the rate for each month is 12/12 = 1% p.m.
Let us consider the following example for the fiscal year 2014 - 2015 for which the EPF deposit rate was 8.75% p.a. Assume the employee started contributions in the month of December.
- First, calculate the interest rate per month = 8.75 / 12 = 0.73%
- Next, remember that the employees entire contribution is directed toward his/her EPF account.
- Lets consider he/she contributes 12% of Rs.15,000 = Rs.1,800 per month; this is credited to his/her EPF account at the end of the month when he/she receives his/her salary.
- So in this case, the first months contribution i.e. Decembers contribution will earn interest only after completing a month in the account, which will be the end of the following month i.e January
- His/her employer will match this contribution = Rs.1,800. However, remember that only 3.67% of the employers contribution is directed towards the employees EPF account and the balance 8.33% is directed towards the employees EPS account. Therefore, the employers contribution to the employees EPF account = Rs. 3.67% * Rs.15,000 = Rs.550
In this case, monthly contribution to EPF by the employee & employer = Rs.1,800 + Rs.550 = Rs.2,350
|Dec 2014||Balance at end of Dec. = Rs.2,350|
|Interest for Dec. 2014 = Nil|
|Jan 2015||Balance carried forward from Dec. = Rs.2,350|
|Balance at end of Jan = Rs.2,350 + Rs.2,350 = Rs. 4700|
|Interest for Jan. 2014 = Rs.4,700 * 0.73% = Rs.34.31|
|Feb. 2015||Balance carried forward from Jan. = Rs.4,700|
|Balance at end of Jan = Rs.4,700 + Rs.2,350 = Rs.7,050|
|Interest for Feb. 2014 = Rs.7,050 * 0.73% = Rs.51.46|
|March. 2015||Balance carried forward from Feb. = Rs.7,050|
|Balance at end of March = Rs.7,050 + Rs.2,350 = Rs.9,400|
|Interest for Mar. 2014 = Rs.9,400 * 0.73% = Rs.68.62|
At the end of March, total interest earned for 2014 – 2015 will be credited to the employees account
= Rs.34.31 + Rs.51.46 + Rs.68.62 = Rs.154.39
This will be added to Aprils balance. Assuming the employees contribution and EPF interest rate remains the same for FY 2015 - 16
|Apr. 2015||Balance carried forward from Mar. = Rs.9,400 + 154.39 = Rs.9,554.39|
|Balance at end of Apr.= Rs.9,554.39 + Rs.2,350 = Rs.11,904.39|
|Interest for Apr. 2014 = Rs.11,904.39 * 0.73% = Rs.86.90|
|May. 2015||Balance carried forward from Apr. = Rs.11,904.39|
|Balance at end of Apr.= Rs.11,904.39 + Rs.2,350 = Rs.14,254.39|
|Interest for May. 2014 = Rs.14,254.39 * 0.73% = Rs.104.05|
This continues till the end of March 2016 when interest earned for the year will be added up and credited again.
To register, make withdrawals or avail advances from an EPF account or to file EPF returns, as well as for other reasons, an employee/member will have to fill out a form. The form depends on what the member is applying for and each form has to be filled and submitted along with supporting documentation or proofs (if required). Eligibility to make a claim is subject to fulfillment of predetermined criteria.
The various types of forms a member would fill in various circumstances are EPF Claim Forms, Registration Forms & Returns Forms.
EPF Claim Forms
- Form 31- This pertains to withdrawals or advances that a member/employee applies for under various circumstances e.g. to fund education or marriage, housing loans, house repairs/renovation/construction etc. Details on each of these claims are elucidated below.
- Form 14- This pertains to funding an LIC policy
- Form 10D- This pertains to pension fund settlement through monthly pension on completion of 58 years of service with a minimum of 10 completed years of service.
- Form 10C- This pertains to pension fund settlement through withdrawal on completion of 58 years of service without a minimum of 10 completed years of service.
- Form 13- Transfer of EPF Account
- Form 19- Final EPF Settlement
- Form 20
- Form 51F
Form 31 - EPF Withdrawals/Advances
Restrictions discourage premature withdrawals from PF accounts being a long-term savings mechanism. However, there are certain circumstances under which employees may borrow against their EPF deposits or withdraw from their accounts. These are specified below:
a. To buy or build a house for residential purposes or to buy a plot of land: As per Para 68-B of the EPF scheme, an employee can avail this facility
- For a property that is held only in his/her own name, in the name of his/her spouse or held jointly between him/herself and his/her spouse (i.e. there should be no other joint owners)
- To either buy or build a residential house or flat
- Only once during his/her entire tenure of service, which can be only on completion of 5 years of service.
- For an amount up to 36 times his/her wages (basic pay and DA) to buy or build a house or flat; for an amount up to 24 times his/her wages (basic pay and DA) to buy a plot OR the total amount of his/her EPF account share and interest OR the total cost of the house/flat/plot, the lower of the three.
- By submitting Form-31 to his/her employer along with a signed declaration
- If purchase is made from an agency, the amount will be paid out to the agency; for purchases made from an individual or promoter, the amount will be paid out to the employee.
b. To renovate/repair a house including making additions or removing parts of a house: As per Para 68 - B(7) of the EPF scheme, an employee can avail this facility
- Once during his/her entire tenure of service, provided he/she has completed 5 years of service if withdrawal is for making alterations or additions to the house and 10 years of service if withdrawal is for repairing the house.
- For property held in either his/her name, his/her spouse’s name or jointly between themselves.
- For an amount up to 12 times his/her total wages (basic and DA) OR his/her share of EPF account balance and interest OR total cost of renovations/repairs, whichever is lower of the three
- By submitting Form-31, duly filled and other required construction certificates as proof of such renovations/repairs viz. Annexure III for alterations or additions and Annexure XIII for house repairs.
- The amount will be paid out to the employee
c. To repay a home loan: As per Para 68-BB of the EPF scheme, an employee can avail this facility
- Once during his/her entire tenure of service, anytime after completing 10 years of service
- For property held in his/her name or in his/her spouse’s name or jointly between themselves.
- For an amount up to 36 times of his/her wages (basic and DA) OR the total amount of his/her share of EPF account balance and interest OR the total loan principal amount payable and interest, whichever is lower of the three
- By submitting the duly filled in Form-31 and a signed declaration.
- The amount will be paid to the agency i.e. lender
d.To pay for medical treatment: As per Para 68-j of the EPF scheme, an employee can avail this facility
- For his/her own self or spouse or children (son or daughter) or dependent parents (father or mother).
- Only for the following types of treatments needing hospitalization for or more than a month -
1. In case of treatment for self-
- Major surgery as an in-patient
- Leprosy, TB, paralysis, mental disorders, cancer, heart problems
Only if his/her employer grants the required period of medical leave i.e. one month or more. The need for such long medical leave should be supported by a doctor’s/specialist’s certificate.
2. In case of treatment for his/her own family-
? Major surgery as an in-patient requiring hospitalization for or more than a month
? Leprosy, TB, paralysis, mental disorders, cancer, heart problems
- Anytime during his tenure of service and as many times as is required for such permitted treatment
- If he/she is certified by ESI/employer that he/she is not covered under ESI scheme.
- For up to the total amount in balance (employee’s portion of contribution only) as on the application date or up to 6 times the amount of the employee’s wages
- By submitting the duly filled in Form-31 to his/her employer and required proofs as mentioned above
e. To fund a marriage: This facility as per Para 68-K of the EPF scheme can be availed by an employee
- For his/her own self, children (son or daughter) or siblings (brother or sister).
- Up to 3 times during his total period of service
- After having completed a minimum of 7 years of service, when availing this facility for the first time.
- By submitting the duly filled in Form 31 to his/her employer along with a marriage invite/card as proof
- For up to half (50%) of his/her share and interest in his/her EPF account.
f. To finance education: This facility, as per Para 68-K of the EPF scheme, can be availed by an employee
- For his/her own self or children (son or daughter).
- For post matriculation education
- Up to 3 times during an employee’s total tenure of service.
- Only after completion of a minimum of 7 years of service.
- By submitting the duly filled in Form 31 to his/her employer along with the educational institution’s fee certificate as proof.
- For up to half (50%) of his/her share and interest in his/her EPF account.
- The amount will be paid out to the employee
g. To make an EPF withdrawal before retirement: This facility, as per Para 68-NN of the EPF scheme, can be availed by an employee
- Once during his tenure of service subject to having completed at least 54 years of age and being due for retirement in one year’s time.
- For an amount up to 90% of the account balance at time of withdrawal. This includes the total amount i.e. the employee’s and the employer’s share. (This is subject to a minimum balance requirement)
- By submitting Form-31, duly filled in along with an employer-issued certificate stating the retirement date.
- The amount will be paid out to the employee
h. To make an EPF withdrawal in case of closure or lockout of the employee’s employing establishment: As per Para 68-H of the EPF scheme, this facility can be availed by an employee
- In case of lockout or closure stretching beyond a period of 15 days.
- When he/she has not received wages for 2 months or more
- Irrespective of tenure of service
- For an amount up to the total amount of his/her wages X the number of months of closure/lockout, provided he/she holds a balance in his/her EPF account i.e. employee share. For lockout/closure period beyond 6 months, he/she can avail an advance from the employer’s share of the account balance as well
- By submitting Form-31 along with a declaration
- The amount will be paid out to the employee
I. Other purposes: This would include withdrawals for employees affected by
- Power cuts - Applies to employees whose wages were 75% or less than the total monthly wages as of Jan 1973. Amount of advance can be a month’s wages or Rs.300. It can be availed by submitting Form-31 with a government-issued certificate stating power cut.
- abnormal conditions - applies in case of natural disasters and the like; for an amount of Rs.5,000 or half of the employee’s EPF account share and interest; availed by submitting Form-31 with a state government declaration as well as a certificate from an authorized department stating the damage incurred.
- and as grants to handicapped employees (physically).- to buy required equipment to minimize his/her disability; can be availed for an amount up to 6 months worth of basic wages and dearness allowance or the employee’s EPF account share and interest or the actual equipment charges, whichever is lower of the three; can be availed by submitting Form-31 and a doctor’s certificate stating said employee is physically handicapped.
- pending court case of dismissal/retrenchment/discharge of employee
- The amount will be paid out to the employee
Note: 1. where agency is mentioned, this refers to the government (central or state), cooperative society, local body, trust, institution, Housing Finance Corporation (HFC).
2. Region codes have been recently changed; check codes for the following states - Karnataka, Maharashtra, Gujarat, Tamil Nadu, West Bengal, Andhra Pradesh, Punjab, Uttar Pradesh, Delhi, Haryana.
In case of natural disasters and the like; for an amount of Rs.5,000 or half of the employee’s EPF account share and interest; availed by submitting Form-31 with a state government declaration
The following important factors should be kept in mind while filling the form
- Fill the form using block letters only
- Write legibly and clearly and do not overwrite
- Fill in the ‘Member’s Account Number’ clearly indicating the region, office, number and extension code and account number. Ensure the correct region and office codes are filled, You can find the latest code relevant to you at the epfo website under ‘Establishment Search’.
- Provide a mobile number at the top of the form to receive SMS updates and to track the claim status
- Clearly fill in a postal address and pin code
Receiving payment for Form-31 Claims
For successful claims, the amount to be paid out to the member or agency will be done to the mentioned bank account.
- Electronic transfers are a faster mode and can be facilitated by providing a cancelled cheque while submitting Form-31. This should clearly indicate electronic transfer details viz. the claimant’s account number and relevant IFS Code.
- For claims below Rs.2,000, money order payments are possible.
- For payments to agency, the agency’s name and address should be clearly provided
Form 14 - Withdrawing from EPF Account (Funding LIC)
This facility is available to an employee
- who has completed at least 2 years tenure of service
- who can declare an account balance sufficient for 2 years of payments and an annual contribution sufficient to cover premium payments
- To pay the first and subsequent premiums of an LIC policy. The amount required as per the schedule of premiums due will be credited to LIC. Details of the LIC policy to be funded will have to be provided.
- To pay interest or late fees.
- From the employee’s share of contributions only
- Who declares that the policy is not encumbered and required details are provided viz. the relevant LIC branch address, the LIC policy number and date/proposed number and date, sum assured under the policy, premium amount, premium due dates, nominee names.
- Duly signs and submits the form
Form 10D - Application for monthly pension under EPS
This form is applicable to employees who are over the age of 58 years and have completed the 10 years of service to make them eligible to settle their pension fund. The following kinds of pension can be claimed using this form.
- Superannuation pension
- Reduced pension
- Disablement pension
- Widow & Children pension
- Orphan pension
- Nominee pension
- Dependent parent
Form 10C - Application for Withdrawal Benefit under EPS
This applies to employees who are over 58 years of age but have not completed the required 10 years of service to be eligible to make such claim. This can be either because the employee didn’t complete 10 years’ service before he/she turned 58 years or because he/she discontinued his/her employment before completing 10 years’ service. Such claim can also be made by employees who have completed 10 years’ service before discontinuing his/her employment but are below 50 years of age. Such claim can also be made by employees who have completed 10 years’ service but are between the age of 50 and 58 years and do not wish to opt for reduced pension. This claim can also be made by an employee’s family/nominee/heir where the employee died after the age of 58 years but before completion of 10 years’ service.
This claim can only be made by employees who have been members for 180 days or more i.e. without considering period for which contributions do not apply. The form should be duly signed and submitted with supporting documentation viz. a canceled cheque copy, children’s birth certificate (for scheme certificate), death certificate (for deceased member), succession certificate (by legal heir), one rupee stamp (withdrawal benefit).
Form 13 - Transfer of EPF account
In order to transfer the EPF balance from an employee’s old EPF account to the new one, a member/employee will have to fill in Form-13 which is the transfer claim form. When making a transfer, PF contributions are sent to a Trust and details of the employee’s service are also sent to the EPFO. When transferring EPF balances, the pension contributions are not transferred (unless the establishment is exempt from the pension scheme, in which case both the PF and pension contribution will be sent to the Trust). For establishments exempt under the EPF/Pension scheme, PF accounts are held with the Trust and for those not exempt, they are held with the EPFO.
- Form 13 (revised) consists of Part A, B and C.
- Part A - Personal Information, Part B - Old PF account details and Part C - Current PF account details
- The old EPF account number and the new EPF account number will have to be clearly indicated. If the establishment is not under the purview of the EPF Scheme, 1952 then the Pension Fund account number will have to be provided.
- Also, to be indicated is the name of the holding EPF office or trust, both old and new.
- In addition to these details, the names and addresses of the old and new establishments and the respective joining and leaving dates will have to be mentioned
- The form has to be attested/signed by either employer i.e. the old or new employer.
- Depending on who attests the form, it will have to be submitted to the relevant employer’s EPF office i.e. if the old employer attests the form, the form will have to be submitted to the EPF office maintaining the old EPF account. If the new employer attests the form, it will have to be submitted to the office maintaining the new account.
How to Transfer your EPF Account online/offline
Employees contribute to their EPF accounts during their service. When an employee changes employers and moves to a new establishment, there arises the question of withdrawing or transferring their EPF accounts. EPF account balances can be transferred from an employee’s old establishment to the new one. This includes the interest earned on contributions to the PF account.
EPF transfer can either be done online or offline. Ever since online transfers were introduced, they have gained preference over offline transfers. Online transfers are more convenient and save on time and effort. It is also easier to track online EPF transfer and get status updates.
How to Transfer EPF offline
To transfer EPF account balances from past employers to present employers
- An employee will have to fill and submit a duly attested Form 13 to his/her past or present employer. The form can be attested by either the past of present employer.
- As mentioned above under section ‘Form-13’, the form will then have to be submitted to the regional EPF office relevant to the attesting employer. PF contributions from the old account will be transferred to a Trust.
- The old employer will have to submit Annexure K to the relevant Regional Provident Fund Commissioner (RPFC) or Regional EPF office. Annexure K will indicate the employee’s tenure of service and the pension fund account balances. When Annexure K is received and verified, the PF trust will complete the transfer process through NEFT. The balance from the old account will then be credited to the employee’s new account.
- In many cases, though, Annexure K is not submitted which means money cannot be credited by the Trust to the new account. There is no way to track this which led to a large number of transfer cases being stalled. For this reason, claim forms and Annexure K were then digitized to facilitate online EPF transfers.
How to Transfer EPF online
To transfer EPF account balances from past employers to present employers online, an employee will have to go through the EPFO portal/website at www.epfindia.gov.in
- First verify that the past and present employers have registered digital signatures with the EPFO. If they don’t have digital signatures, follow the offline PF transfer procedure.
- On the EPFO portal’s home page, choose the option Online Transfer Claim Portal (OTCP)
- Next choose the option to check eligibility to file a transfer claim online (the other two options are for detailed instructions and FAQs)
- To check eligibility for OCTP, provide prior PF details viz. the old and new EPF account numbers.
- If registered with the site, log-in with the member id; if not register to get log-in details.
- Logging-in entails filling in the document type and number and mobile number (same as the log-in details for the member portals). This will lead to the Online Transfer Claim Application.
- Request for account transfer under the ‘Claim’ option in the menu.
- Part A, Part B and Part C of Form 13 - Request for Transfer of Account Form will be displayed.
- Part A - fill in personal details viz. name, mobile number, email id, bank account number and IFS code.
- Part B - fill in details of the old PF account viz. The PF account number and EPF office. Proceed to obtain the following details viz. the employee’s old establishment name and address, the employee’s name, date of birth, joining and exit date, father’s/spouse’s name and the relevant EPF office where the account was held. If the date of birth is not displayed, ensure this detail is updated.
- Part C - similar to Part B, except this pertains to the current PF account details.
- Choose to have the form/claim attested by the current or old employer.
- Preview the form once completed and make changes as required, if any.
- Get the Pin and accept the declaration. Finally enter the pin as sent to the provided mobile number to submit the online claim/form for transfer of PF account.
- Print the filled in form, sign, and submit it to the chosen employer for attestation. The chosen employer verifies the form in the portal. Once verified, the EPFO will proceed to transfer the account.
- Issues can be logged on the portal through the grievance system.
Eligibility for online transfers can be checked on the same portal by providing the old and new pf account details. You can track your EPF transfer claim status online through the portal. Offline transfers are hard to track.
Form 19 - EPF Final Settlement
Employees can claim final settlement of EPF accounts when they leave service and do not join another establishment. However, if they leave service at one establishment and continue service at another, they should opt for transfer of EPF account through Form-13 (details above). Withdrawing and settling the account while employed with another company or between jobs is not technically allowed as per PF rules.
Reason for leaving service to withdraw PF through Form-19 may be any of the following -
? On or after the age of 55 years
? Under VRS (Voluntary Retirement Scheme)
? Due to physical/mental inability to continue service on a complete and permanent basis
- Resignation and not in service with an establishment covered by the EPF Scheme
- Discharge with compensation as per Industrial Dispute Act, 1947
- Emigration to a foreign country either for employment or permanent residence
For employees who resign or are discharged, as mentioned above, a waiting period of 2 months is applicable to make withdrawal and settle his/her EPF account. An EPF account can be left active even after leaving employment as interest continues to be earned and credit for up to 3 years even if contributions have stopped. After 3 years the account becomes inactive. If alternate employment has not been found within these 3 years, it would be advisable to withdraw and settle the account through Form-19.
Form 10C/10D with Form 19 - Pension Fund & EPF Withdrawal
When applying to withdraw EPF balance through Form-19 (due to above mentioned cases), an application can also be made for pension scheme certificate / pension fund withdrawal through Form 10C or for pension / reduced pension through Form 10D depending on employee age and number of eligible years of service completed. Forms 10D and 10C have been explained in detail above.
Members below 50 years of age
- 10 years’ service completed - Form 19 and Form 10C (for pension scheme certificate)
- 10 years’ service not completed - Form 19 and Form 10C (for pension scheme certificate or withdrawal benefit)
Members between 50 to 58 years of age
- 10 years’ service completed - Form 19 and Form 10C (for pension scheme certificate) / Form 10D (for reduced pension)
- 10 years’ service not completed - Form 19 and Form 10C (for pension scheme certificate or withdrawal benefit)
Members over 58 years of age
- 10 years’ service completed - Form 19 and Form 10D (for pension)
- 10 years’ service not completed - Form 19 and Form 10C (for pension scheme withdrawal benefit)
(Form 10C - Members applying for pension scheme certificate or withdrawal benefit can retain membership of the Pension Fund until they completed a tenure of 10 years. After this members can opt for pension).
In the case of discontinuation of service as a result of physical handicaps/disability.
- Members below 58 years of age - Form 19 and Form 10D (for pension)
- Members above 58 years of age
- 10 years’ service completed - Form 19 and Form 10D (for monthly pension)
- 10 years’ service not completed - Form 19 and Form 10C (for pension withdrawal benefits)
How to fill Form -19
When filling Form 19, members can fill in their mobile numbers at the top of the form to updates via SMS regarding claim approval.
- The first set of details to be filled are the member’s name, father/husband’s name, name of last employer, member account number (in the format region code/office code/establishment code/sub code/account number), exit date and reason for exit (from last establishment), postal address.
- Additional details to be filled include the IFS code of the bank branch to which the money is to be credited, date on which the member joined the last establishment, the member’s birth date. Finally, the form has to be signed by the member and the employer along with the establishment’s seal.
- In cases where the employee is settling his/her account after a required waiting period of 2 months (read above ‘Reason for leaving service to withdraw PF through Form-19’), the employee-member will have to provide one more signature confirming that he/she is unemployed when making this application.
- In cases where a member is to receive an amount larger than Rs.2,000, he/she will have to sign for the same. In this case, the amount will not be processed through a money order.
Form 20 - EPF Final Settlement Claim in case of death of an employee-member
If an employee-member dies, his/her nominee/heir/beneficiary will have to submit the required forms based on when he/she dies to claim the EPF balance in the employee’s account. Form 20 will have to be submitted for final settlement and along with this the requisite forms will have to be submitted to claim pension and insurance. The forms to be submitted will depend on when the employee dies
Below 58 years of age
- While in service - Form 20 and Form 10D (for monthly pension) and Form 51F (for insurance claim - EDLI)
Above 58 years of age
- 10 years’ service completed - Form 20 and Form 10D (for monthly pension) and Form 51 for insurance claim (EDLI)
- 10 years’ service not completed - Form 20 and Form 10C (for pension withdrawal benefit) and Form 51F (for insurance claim -EDLI)
If the employee dies while not in service, then in the above cases, insurance claim through Form 51F does not apply.
EPF Claims Status check/inquiry - Online or Offline
In many claim forms, members can receive EPF claim approval and other status updates via SMS by providing their mobile numbers atop the claim form before submission. Subscribers can check for epf withdrawal status, EPF Transfer status, epf settlement status. This can be done in two ways viz. Online or Offline.
Online tracking of EPF Claims
The online mode is preferable as it is more convenient, quicker and easier to follow. However, not all states provide this facility and as such the offline method will have to be followed. For those who can avail this facility online, the status can be checked on the EPFO portal under ‘Know Your Claim Status’ (KYCS). This service can be used by any member to track a claim made at any EPFO office pan India.
- At the EPFO site, click on the link to know your claim status information
- Choose the relevant state and EPF office that maintains your account from the list provided
- After the Region and Office codes are displayed, enter the Establishment code and its sub code or extension code, if any.
- Enter the PF account number and submit
- The PF claim status will be displayed; if claim details were not updated in the system, the status will reflect ‘No record found’. Generally, on submission of claims, post updation in the system, a claim ID is generated.
If a mobile number has been provided in the claim form, wherever possible, an SMS update will be provided. In case of transfer, an update will be sent regarding closure of the old PF account and another updated will be sent regarding transfer of balance to the new PF account. In case of account settlement, an update will be sent regarding receipt of application at the EPF office and another update will be sent regarding credit of balance to the applicant’s account. In case a claim is not approved or there are some difficulties in processing a claim, applicant’s may receive a ‘claim rejected’ status.
Offline tracking of EPF Claims
The offline method entails a visit to the relevant EPFO office. Forms have to be either filled in manually and submitted at the EPF office or downloaded from the portal filled and submitted at the epf office.
Contact EPFO to check claim status information
Applicants can reach out to the EPFO through its helpline or customer care numbers to gain information on different services including to ask about their claims in process. These lines are open all the time and call representatives will assist callers with their queries. The numbers can be obtained through the EPFO portal.
PF subscribers can check their EPF/PF balances and account status updates through their passbooks which records transactions made with respect to their PF accounts. The employees PF status and account updates are recorded in this passbook on a monthly basis and will include contributions made, interest credited, withdrawals made (if any) and PF member details such PF account number, the employee-member’s name and birth date.
Earlier, employers would provide employees with an annual statement detailing contributions made by each party and interest earned thereon. This statement would be sent to the employer by the relevant EPFO office at the end of a financial year.
In 2012, however, the EPFO introduced EPF e-passbooks or online EPF passbooks which members can access and download through the EPFO portal, www.epfindia.gov.in. These e-passbooks contain all transactions pertaining to their account (as mentioned above). The e-passbook can be downloaded multiple times, as required.
To avail the EPF e-passbook facility, members will have to first register on the epf members portal. Also, it is only available to those employees for whom the ECR (Electronic Challan cum Receipt) has been uploaded by their employers and for whom the employer has remitted dues; applicable from May 2012. (Employees who discontinued service prior to March 2012 will have to put in a request for the passbook. This can be done through the portal). Additionally, this facility does not apply to those employees whose accounts are inoperative or have been settled. However, employees can request passbooks of inoperative accounts to be displayed by putting in a request for the same through the portal.
Once registered on the member portal, subscribers can download their e-passbooks by providing the following details viz. the state of the PF office, the PF office, the company code, the PF account number and name of the subscriber. Once this is done, the authentication pin has to be generated through the ‘Get Pin’ icon. Once received via the registered mobile number, it has to be entered at the bottom of the page after agreeing to the disclaimer. This will give subscribers the link to download their EPF e-passbook.
EPF Member Portal - Registration
- On the EPFO site (www.epfindia.gov.in) subscribers should choose the member portal featured under the section ‘For Employees’.
- This will lead to the welcome page, at the bottom of which is a link to ‘Register’
- On clicking this link, subscribers will be directed to a page wherein the following details will have to be filled/chosen viz. subscriber’s mobile number, birth date, document, document number, name of subscriber as provided on the document, email id.
- Once filled in, an authentication pin will have to be generated by clicking on ‘Get Pin’. This pin number will be sent to the subscriber’s mobile and the same has to be entered at the bottom of the page, after agreeing to the disclaimer.
(The document chosen to register cannot be changed later. Documents include identity proofs like AADHAAR, PAN, NPR, Voter ID, Driving License, Bank Account or Passport.
- Once completed, a message will be displayed stating that the registration process was successful.
- Log-in details will be sent to the subscriber’s mobile. These details can be used to log into the EPF members site thereafter. Additionally, the subscriber will have to verify his/her email id through the email sent to it.
- To log-in to the EPF member portal, there is no requirement for a user id or password. The subscriber simply chooses a type of document and enters the document number. This acts as his/her user id. The registered mobile number acts as his/her password.
On registration the subscriber can view one PF account per establishment and up to 10 accounts under different establishments. Besides being able to access the PF passbook online, subscribers also get single-point access to all their accounts.
How to check EPF Balance Online
EPF balances can be checked online in the Know Your EPF Balance of the EPFO site. To check your PF balance status, click on the link provided. Choose the relevant EPFO office and fill in your PF account number, including extension number, if any. Fill in your name and mobile number. On submission of all these details, an update on the PF balance will be sent to the mobile number provided. Alternatively, the EPF balance can be checked using the Universal Account Number or UAN.
UAN - Universal Account Number
This is a single number that a PF subscriber can use to view all accounts held by him/her with different establishments. The unique 12 digit UAN links all member ids of a PF subscriber. This makes accessing and tracking his/her accounts easy and convenient. UANs are provided to employees by their employers. Once obtained, the allotted UAN should be quoted to new employers, if any. The new employer will provide a new member id to the employee and this will be linked to the UAN. With UANs, employees will depend less on employer intervention especially in transferring of PF accounts.
UANs are still in the process of being rolled out. An employee can check if he/she has been allotted a UAN by checking the uan members section of the EPFO services portal at www.uanmembers.epfoservices.in. Here, employees can check their UAN status by providing their PF account number. If allotted, they can approach their employer to obtain it. Employees have to provide KYC documents to their employers (which employers verify) before they are given their UAN. The next step will be to register or activate their UAN.
Activating /Registering UAN
Employees who receive their UAN will have to register it. This can be done at the UAN members site as mentioned above by clicking on the link provided Activate Your UAN. Employees require the following details to activate their UAN - the UAN itself, member ID as given by the new employer who provided the UAN and mobile number. When registering or activating their UANs, employees have to also create passwords for the UAN members portal. The user id will be the UAN itself.
Once registered, members can access their UAN cards and PF passbooks. UANs can also be activated via mobile phones. To do so, members should login to the UAN Member Portal and choose Download Passbook or Download UAN Card from the download menu.
PF Form -11 Declaration Form
Form 11 declaration for PF was made compulsory in 2015 for new members as part of the EPFOs e-governance measures. It replaces Form 11 Revised version. Form 11 is available to be filled on the member portal.
The new Form - 11 also replaces Form 13. Form 11 acts as as PF transfer request through which employee-members old PF account balances and service details are transferred to the new account. This pertains to employee-members who have been allotted
UANs and have had their KYC details verified by their old employers via digital signatures. In this case, they wont have to submit Form 13 to request PF transfer. (However, if employee-members have not been allotted UANs and/or their new employers dont have digital signature certificates, then Form 13 will be required to transfer old EPF account balances to new accounts. Form 11 will also have to be submitted).
Filling up Form 11
In this form the following information will have to be provided
- The employee-members personal details - Name with title, Birthdate, Father/Husbands name, Specify whether Father or Husbands name is provided, Gender, Mobile/Email Id (optional).
- Next, information will have to be provided as to whether the employee was under prior purview of the Employees Provident Fund Scheme and/or the Employees Pension Scheme. If yes, then it becomes mandatory for the employee-member to fill in the fields pertaining to his/her prior employment.
- Prior employment details to be provided are the employee-members UAN or old PF Member ID, date of leaving the old establishment, and whether a scheme certificate and/or pension payment order was issued along with the respective numbers.
- The next part of the form pertains to details relating to whether the employee-member is an international worker, educational background, marital status and whether he/she is differently abled.
- The final field of this part is where the employee-member fills in KYC details as per the listed KYC documents viz. Bank account, NPR/Aadhaar, PAN, Drivers License, Passport, Ration Card, Election Card, ESIC Card. Of this, the Bank Account Number has to be compulsorily filled along with the IFS Code for the branch. The other documents, though not compulsory, should also, ideally, be provided to make EPF processes easier. Self-attested copies of all documents should be submitted along with the form.
- The final part is a declaration that the information provided is true and that the UAN and/or old member ID provided (if covered under the EPF/EPS schemes) is correct. As part of the declaration, subscribers acknowledge that the form is a request to transfer old PF accounts to new accounts and that nominations can be submitted through the UAN portal.
- Beneath this is a declaration to be filled by the current employer. This consists of three parts viz. A, B and C. Part A states the date the employee-member joined the establishment and the PF ID that was given to him/her. Part B pertains to employees who were not covered under the EPF/EPS scheme prior to joining this establishment in which case the employer states the UAN that has been allotted (when it is allotted) to the employee-member. The employer further indicates whether the employee-members UAN KYC details are uploaded/uploaded and approved/uploaded and not approved. Part C pertains to employees who were covered under the EPF/EPS schemes. The employer then confirms linking of the PF ID provided to the employee-members UAN. Further the employer indicates whether the employee-members KYC has been approved or not using digital signature and if request for transfer of old PF accounts has been initiated via the UAN portal. If digital verification is not possible, the employer confirms informing the employee-member to initiate the offline PF transfer process through Form 13 (read above).
EPFO e-Sewa Portal
As of April 2012, EPFO launched Electronic Challan cum Receipt (ECR) online. In keeping with this, all employers are required to register on the EPFO portal and upload and approve electronic returns based on which an online challan will be generated. Further, payment can be made via internet banking. The employers EPF return and challan can also be printed and payment made offline. Payments are made to SBI; whether made online or at an SBI branch, an SMS update is provided. This online service eliminates the need for employers to file returns physically i.e. there is no physical filling of forms and submissions required to the EPFO. It also does away with filing Form 5, Form 10, Form 12A, Form 3A, Form 6A.
- Form 5 and Form 10 - Employers file these on a monthly basis detailing all the employees to be added and deleted, respectively, under the EPF scheme.
- Form 12A - Another report filed on a monthly basis by employers detailing payments credited to employee EPF accounts
- Form 3A and 6A - Filed by employers by April 30th on an annual basis detailing employee-members EPF and pension contribution for each month of the year and for the year respectively.
Being implemented from FY 2011- 2012, annual accounts for prior years have to be requested for and this can be done through the EPFO portal itself.
How much amount can be withdrawn from the EPF corpus?
Almost every salaried employee contributes towards EPF in India. While the accumulated EPF amount is withdrawn generally at the time of retirement, there are certain other factors that qualify for premature withdrawals. Refer to the below table for premature withdrawal norms and the maximum amount that can be withdrawn.
|Reason for withdrawal||Eligibility Condition||Amount||Number of times|
|For marriage||The member should have completed 7 years since enrollment in EPF scheme. The withdrawal is allowed on the occasion of:
||50% of the accumulated amount||Thrice during the entire career|
|For education||Withdrawal is allowed only for the education of children and the PF member should apply using Form 31||50% of the accumulated amount||Thrice during the entire career|
|For medical treatment||For treatment of self, spouse, parents, and children. Certificate of proof should be submitted||6 times the monthly salary of the person or the accumulated EPF amount (whichever is lesser)||Anytime|
|For Buying a house||Should be employed from 5 years, and the property should be registered in the individual’s or his spouse’s name or should be jointly owned.||36 times the individual’s monthly salary||Once|
|For repayment of home loan||Should be employed from 10 years, and the property should be registered in the individual’s or his spouse’s name or should be jointly owned.||36 times the individual’s monthly salary||Once|
|Pre-retirement||Should be at least 54 years of age||90% of the EPF balance||Once|
The UMANG (Unified Mobile App for New Governance) App helps employees view their passbook and make withdrawal requests through the app. While the passbook can be viewed without seeding one’s Aadhaar details, claim requests require EPFO members to seed their Aadhaar number with their UAN.
For Employers - How to register on EPFO for ECR
- Establishments can register at esewa.epfoservices.in by clicking on the register icon. When registering for the first time, temporary login details will be generated. This can be changed on subsequent login.
- Next, the relevant state of the establishments EPFO office should be chosen. This will display a list of offices. The appropriate office should be chosen.
- This leads to the registration page in which the following details should be filled viz. - name and address of the establishment, coverage date, PAN, establishment name as per PAN, names of three authorized persons with their number and email ids. Once these details are filled, the authorization pin should be obtained by clicking on Get Pin. After filling this in, the I Agree box should be checked off and registration complete. Temporary log in details will be sent via SMS i.e. the temporary user id/password.
- If registration is successful, a screen displaying a message to that effect will appear with instructions to login again to reset the temporary username and password.
- To do so, the temporary details provided have to be entered in the Log In section of the main page. New details can then be entered and the process completed by clicking on Create Permanent Login. Note - once entered and confirmed, user names cannot be changed later.
- An SMS update is provided on successful registration.
The ECR file format can be downloaded from the site. Annexure 1 - Members Aadhaar details, Annexure 2 - Error Code List and Annexure 3 - Member Details Correction (Form 5 and 10). are also available on the same page. These are samples/instructions on how to prepare the file for upload.
To make changes to personal details viz. name, birth-date and husband or spouses name, employee-members can initiate the process through their employers using the correction form which has to be submitted/declared jointly i.e. between the employee-member and the employer. The changes will have to be effected in the EPF database. Documentation to support the changes required will have to be provided to the employer.
PF members may want to make changes because the names or birth-date updated in the database is incorrect. The name may have been misspelled or otherwise, or changed after marriage. Sometimes, employers erroneously update employees details. It is important to correct errors in the name and birth-date in the EPF database because such discrepancies can create issues at time of withdrawal of PF or during other PF transactions.
By checking the EPF passbook online or through the UAN portal, one can check for errors in PF database pertaining to name and birth-date. If request for change has been made, applicants can update or track whether changes have been effected in the EPF database by checking the passbook subsequent to submitting the application.
How to fill PF Name Correction Application
The form can be downloaded from the PF portal. The form has to be addressed to the Regional PF commissioner. Details to be filled are the employee-members name, the employers name, the correct name of the employee, his/her husband or father, EPF account number, birthdate and dates of joining/leaving his/her employer. Also, the incorrect details have to be provided against the relevant field. The supporting documentation for the change has to be declared. The form should be duly signed by the employee and employer and submitted along with self-attested copies of documents. The employer forwards the form to the relevant PF office.
For name change after marriage, the marriage certificate should also be provided as proof. It is advisable to have the same name in the PF database as the employee-members bank account and office documents.
Although online correction of EPF details is yet to be implemented, the implementation of UAN and online updation of verified KYC details should facilitate reduced errors. However, mobile and email id details can be changed online using the UAN portal.
EPF Nomination - Form 2 (Revised)
Employees can name nominees to their EPF accounts by filling in the EPF nomination form. Family i.e. spouse/kids can be named as nominees. Those without family can name others as nominees but on acquiring a family, nomination should be changed. If an employee-member dies, nominees can claim his/her EPF account balances through the appropriate claim form. The nomination form can be submitted via the UAN portal. Form 2 consists of a part for EPF nomination and another part for EPS nomination.
Employers verify members nominations through the EPFO OTCP portal. Employers log in and follow the link for nominations where they approve or reject the nomination using digital signatures. Approval is done on receipt and verification of physical nomination forms from employees.
The EPFO hosts a grievance management system at EPFiGMS.gov.in for members to lodge their grievances for redressal. Members can check their EPF balances and find out the status of their claims as well through this portal.
Members will have to register their grievance by choosing Register Grievance from the main page menu. In the Grievance Registration Form, members will have to fill in their EPF details, Personal details and Grievance details.
Under EPF details, members will have to first specify whether they are registering issues in the capacity of an employee, employer, pensioner or other. They will then have to specify the relevant EPFO office and their company’s name and address. Under grievance details, files can be uploaded.
Registered grievances can then be tracked through the link View Status provided on the main page.
The Employee Provident Fund organization was started as a platform for retirement savings, targeting individuals employed in the private sector. EPF contributions begin right from the time a person is employed and it continues till he/she attains 58 years. The sole purpose of EPF is to save a portion of the employee’s salary on a regular basis, which can be withdrawn as a lump sum at the time of retirement. The interest paid on EPF is announced by the government on a yearly basis in consultation with the Central Board of Trustees.
The employee contributes 12% of his basic salary towards EPF, which is matched with 12% contribution from the employer’s side. Also, the employee contributions are taxable whereas employer’s contributions are exempted from tax. Employee Provident Fund Scheme, Employee Deposit Linked Insurance Scheme, and Employee Pension Scheme are the three schemes active under The EPF & MP Act, 1952. Any organization with more than 20 workers should compulsorily register for EPF.
Eligibility criteria for EPF membership
EPFO increased the wage ceiling on PF eligibility from Rs.6500 to Rs.15,000 due to salary revisions in both organized and unorganized sector. At present, any employee whose income is above Rs.15,000 is eligible to enroll for EPF scheme. But some organizations also enroll employees below the aforementioned salary range depending on certain conditions. However, once enrolled, you cannot cancel your EPF membership.
How to enroll for EPF
Individuals at the time of joining a new organization must fill Form 11, if the employing organization is registered under the EPF scheme. To be a member of the EPF scheme, it is necessary that employees submit the declaration form along with nomination details. The purpose of declaration form is to know whether the employee is an existing member of the EPF scheme or not.
Linking EPF with UAN
UAN is a 12 digit unique identity assigned to every employee who is a member of the EPF scheme. UAN acts as an online platform that provides EPF services. From knowing your current status to downloading passbook, the UAN number allows you to access a wide variety of information related to your provident fund account.
Inoperative/Dormant EPF accounts
As per the recent notification by EPFO, even those accounts that remained idle from a couple of years will not be classified as inoperative. Since 2011, government had stopped paying interests to dormant accounts. However, with the new rule in place even the inoperative accounts too will start accruing interests at the rate of 8.8% per annum. The new reform will prove to be beneficial for around 10 crore workers in the country. Furthermore, it can be considered as a safe investment option as even the inoperative PF account will continue to accumulate interests till the time the employee retires from his job.
New EPF Withdrawal Forms
The new withdrawal forms released by EPFO allow one to withdraw his/her provident fund without getting approval from the employer. The newly released forms, Form 19 UAN, Form 10C UAN, and Form 31 UAN allows for final settlement and partial withdrawal without involving complex procedures and paperwork. Form 19 UAN is applicable in cases where an employee resigns from service or employer terminates the employment agreement. Form 10C UAN is used for making claims related to EPS and Form 31 is associated with partial withdrawals or advances. For EPF withdrawals using the newly released forms, the following conditions are necessary:
- Employee should have a UAN number
- He/she must have submitted Form 11 at the time of EPF application
- Aadhaar card should be linked to UAN
People without UAN can apply for EPF withdrawal using the standard forms Form 19, Form 10C, and Form 31.
EPF Tax Exemption
As per the Budget notification of 2016-17, only interest accruing on 60% of the employee contributions towards EPF will be taxable. This is with effect from 1 April 20166. However, employees whose monthly income is below Rs.15,000 are exempted from tax.