• Know about EPF claim after the Death of a Subscriber

    The claim can be made through Form 20 by the legal heir or whoever is eligible to get the EPF amount. The claim can be forwarded only through the employer.

    EPF claim after the death of a subscriber

    EPF or Employee’s Provident Fund is a savings scheme available to all salaried employees residing in India. It is more of a retirement saving scheme that helps employee build a retirement fund by investing a fraction of their salary in the account every month which can later be used in the time of retirement. EPF is mandatory for individuals earning a salary up to Rs.6500. Those earning more than Rs.6500 can contribute to the fund voluntarily. The fund is maintained by EPFO(Employee provident Fund Organisation). Both the employer and the employee contribute to the employee’s fund.

    Features of EPF

    Listed below are some of the important features of an Employee Provident Fund

    • It is available only to salaried employees
    • A part of the employee’s salary is invested in the EPF account every month
    • Employer’s contribution of 12% of basic salary is totally deposited in provident fund account whereas out of employee’s contribution of 12%, 3.67% is contributed to provident fund & 8.33% is deposited in Pension scheme.
    • Employees also have the option of contributing more than 12% if they intend to
    • The amount invested in an Employee Provident Fund is exempt from tax under Section 80C of the Income Tax Act.
    • In EPF, the amount is paid at the time of retirement or resignation, whichever occurs earlier.
    • The employee can check the amount invested in their EPF account online on the EPF India website with their Universal Account Number(UAN)
    • Partial withdrawals allowed for specific expenses such as house construction, higher education, marriage, illness etc.

    How to claim EPF after the death of a subscriber?

    This is one of the main questions that’s in everyone’s mind. What happens to the EPF account after the death of the subscriber? Upon the death of an EPF member, the Employee Provident Fund amount is paid to the nominee that was nominated at the time of initiation of the account. If there was no nominee assigned then the EPF amount is paid to the immediate members of the family. If the family members and the nominee are not applicable for the account then the legal heir can claim EPF amount. .

    In case of closure of establishment the claim may be sent through the authorised persons as per the list given in the application form. It is desirable that in such cases the claim may be got attested by the bank manager wherein the bank account is kept.

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