Employee Provident Fund - All You Need To Know

If you are a salaried employee in India, you already know about the portion of your salary that you do not get in hand. You typically contribute this portion of your salary towards your Employee Provident Fund or EPF account.

All Employees’ Provident Fund Organisation (EPFO) subscribers should note that e-nomination is necessary for the online payment of PF and to ensure that their nominees receive pension and EDLI scheme upto Rs. 7 lakh.

E-nomination can be completed by logging into the PF portal. However, one must remember that e-nomination is only necessary after marriage. Furthermore, documentation or approval from the employer isn’t needed; a self-declaration is sufficient for e-nomination.

Here’s A Step By Step Guide For You To Understand All About EPF

What is EPF?

Employee Provident Fund (EPF) is a fund wherein the employee and the employer have to contribute an equal pre-decided amount of money which can later be leveraged by the employee. It is managed by the Employee Provident Fund Organisation of India (EPFO).

Objectives of the EPFO

• EPFO envisions repositioning itself to be the World’s Best Social Security Organization that provides the best facility to
• Decrease the amount of time it takes to resolve disputes from a month to 72 hours.
• Provide subscribers with no trouble service through EPFO offices.
• Confirm that all eligible facilities are in compliance with the needs of the mentioned statute
• Encourage and foster voluntary conformity.
• Member Accounts are updated on a regular basis.
• Access to the Member Account is available online.

EPF Benefits

The following are the benefits of EPF:

• A worker’s investment in his PF fund is regarded as qualified for exemptions under the Indian Income Tax Act. Furthermore, earnings produced under EPF systems are tax-free. This exemption is available to a maximum restraint of Rs. 1.5 Lakhs.
• It aids in long-term financial savings.
• There isn’t any need to produce a single, large investment.
• Subtractions are made monthly and help the worker save money.
• It could provide financial assistance to a worker in the case of emergencies.
• It aids in the preservation of money for pension and the maintenance of a comfortable lifestyle.

EPF Interest Rate

The CBT is led by the Labor Minister. EPFO provided an 8.5% interest rate to all its members on their cumulative EPF contributions year 2020-21. Their rate of interest in 2019-20 remained unchanged at 8.5 per cent, an eight-year low.

EPF Eligibility

Any paid worker with a paycheck significantly lower than 15,000 INR is required to join the EPF. Employees having a monthly salary far beyond INR 15,000 are qualified to participate in the EPF if they receive clearance from the Regional PF Commissioner along with their employer.

Types of EPF Forms

The business provides several sorts of PF Forms for various claim methods. Some required forms are as follows:

• Form 19: To be completed after a member has completed the final payout of their PF account.
• Form 10C: For obtaining the Workers’ Pension Fund ’95 Scheme Credential Reward.
• Form 10D is used to file pension applications.
• Form 20: Used to collect PF following the passing away of a person’s lawful heir/nominee.
• Form 5IF: must be completed by the lawful heir/nominee of the participant in order to receive an assured benefit under the Workers’ Deposit Linked Financial Services act of 1976.
• Form 31: To request an advance/temporary pullout under Workers’ Provident Plan ’52.
• Form 13: To move PF/pension funds across accounts.
• Form 14: To use the PF account to finance a policy of life insurance.

EPF applicability

Let’s understand the conditions around which EPF is applicable –

• EPF applicability for employers

Any company that has 20 or more employees in total is required by law to deduct EPF.
Subject to certain conditions even organisations with less than 20 employees are applicable.

• EPF applicability for employees

Any salaried employee with a monthly income of less than 15,000 INR needs to compulsorily be a member of the EPF  An employee with a monthly income higher than INR 15,000 (the current prescribed limit) is eligible to become a member of the EPF if he/she gets approval from the Assistant PF Commissioner and employer. An employee can also choose to opt out of EPF if his/her salary is higher than INR 15,000 and if they have never made any contribution to EPF. This can be done by filling Form 11, which is a self-declaration form provided by the EPFO.

How to login to EPFO Portal?

Most of the services provided by the EPF can be easily availed online through the EPFO member e-Sewa portal. These services include EPF passbook — viewing and downloading, withdrawing funds, PF account transfers etc.

You can easily avail these services by registering and logging in to the EPFO portal. Login portal for the employee and employer are the same. Most of the services provided by the EPF can be easily availed online through the EPFO member e-Sewa portal. These services include EPF passbook — viewing and downloading, withdrawing funds, PF account transfers etc.

Conclusion

You can easily avail these services by registering and logging in to the EPFO portal. UAN is mandatory for EPFO login. If you still haven’t generated nor activated UAN, refer this article for assistance. Follow the steps below to login to your account.

Also Read: Do You Have A Loan? Learn Why Term Insurance Is The Best Option For You.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.