Employee Provident Fund (EPF)

The Employees' Provident Fund (EPF) is a pivotal savings scheme in India, designed to ensure financial security for employees post-retirement. Administered by the Employees' Provident Fund Organisation (EPFO), it mandates contributions from both employers and employees, fostering a substantial corpus over time.

Key Objectives of EPFO

• Ensure every employee has a single EPF account for seamless fund management.
• Simplify compliance processes for easy adherence by organisations.
• Ensure organisations regularly follow EPFO regulations and guidelines.
• Improve reliability and efficiency of online services for users.
• Enable easy online access to all member accounts.
• Reduce claim settlement time from 20 days to just 3 days.
• Encourage voluntary participation and compliance.

Universal Account Number (UAN)

The Universal Account Number (UAN) enables EPF members to access their accounts online, check balances, and withdraw funds conveniently. Each employee is assigned a unique 12-digit UAN that remains unchanged across different jobs. A new member ID is linked to the same UAN when an employee switches jobs.

Employees can obtain their UAN from their employer or retrieve it by logging into the UAN portal (EPFO Member Portal).

Employee Provident Fund (EPF) Benefits

• Encourages long-term savings and financial security.
• Contributions are automatically deducted every month, ensuring consistent savings.
• Acts as a financial safety net during emergencies.
• Supports a comfortable lifestyle post-retirement.

EPFO Schemes

The EPFO manages multiple schemes for employee welfare:

• Employees' Provident Funds Scheme (EPF) - 1952: A retirement savings plan.
• Employees' Pension Scheme (EPS) - 1995: Provides pension benefits.
• Employees' Deposit Linked Insurance Scheme (EDLI) - 1976: Offers life insurance coverage.

EPFO Services

• Inoperative Accounts Helpdesk: Assists employees in tracking and managing inactive EPF accounts.
• Online EPF Withdrawal: Enables easy fund withdrawal for employees who have been unemployed for over 2 months.
• Certificate of Coverage for International Workers: Helps employees working in countries with Social Security Agreements (SSA) with India.
• Monthly Returns for Exempted Establishments: Facilitates online submission of monthly returns.
• UMANG App: Allows employees to access EPF services like passbook viewing, profile updates, and claims via a mobile app.
• Online EPF Transfer: Enables seamless transfer of funds from a previous EPF account to the current one.
• Online Establishment Registration: Allows organisations to register and obtain PF code online.
• Mandatory Online PF Payments: Employers must make PF contributions online via partnered banks.
• Missed Call & SMS Services: Employees can check their balance and contribution status via SMS (send "EPFOHO UAN" to 7738299899) or missed call (011-22901406).
• Claim Status & Passbook: Members can check their EPF claim status and download their passbook online.
• Grievance Redressal: Members can file complaints regarding EPF withdrawal, pension, or transfers. EPFO resolves 80% of complaints within 7 days and 97% within 15 days.

EPF Contributions: Building a Secure Future

Under the EPF scheme, both employers and employees contribute 12% of the employee's basic salary and dearness allowance each month. This joint effort fosters a disciplined savings habit, leading to a significant fund over time.

Understanding the Structure of EPF

• Employees' Pension Scheme (EPS): From the employer's 12% contribution, 8.33% is directed towards the EPS, ensuring a steady pension for employees after retirement.
• Employees' Deposit-Linked Insurance (EDLI): An additional 0.5% of the employer's contribution goes towards the EDLI, providing life insurance coverage to employees.

EPF Withdrawal Rules: Accessing Your Savings

EPF offers flexibility in withdrawals to cater to various life events:

• Partial Withdrawals: Permitted for specific purposes such as medical emergencies, higher education, marriage, or purchasing a home.
• Full Withdrawals: Allowed upon retirement at 58 years or if unemployed for more than two months.

Checking EPF Balance: Staying Informed

Employees can monitor their EPF balance through multiple channels:

• EPFO Portal: Log in using your Universal Account Number (UAN) and password to access your balance.
• UMANG App: A government initiative that allows users to check EPF balances, raise claims, and more.
• Missed Call Service: Give a missed call to 011-22901406 from your registered mobile number to receive balance details.
• SMS Service: Send an SMS to 7738299899 with the text "EPFOHO UAN ENG" to get balance information.

EPF Forms and Their Uses

Several forms facilitate various EPF-related processes:

• Form 31: For withdrawals, loans, and advances.
• Form 10D: To avail a monthly pension.
• Form 10C: To claim benefits under the EPF scheme.
• Form 13: To transfer PF amounts from a previous job to the current one.
• Form 19: For final settlement of the EPF account upon retirement or resignation.

Breakdown of PF Contributions

Employers contribute to different segments of the EPF scheme as follows:

Employee and Employer Contributions

Both employees and employers are required to contribute towards the EPF fund. Each contributes 12% of the employee’s basic salary and dearness allowance.

• Employee's Contribution: 12% of the employee’s salary is deducted monthly and deposited into the EPF account.
• Employer's Contribution: The employer also contributes 12% of the employee's salary, which is distributed among EPF, EPS, and EDLIS.

EPF Interest Rate

The current interest rate for Employee Provident Fund (EPF) accounts stands at 8.25%. Interest is calculated at the end of the financial year and added to the employee’s and employer’s contributions, increasing the overall balance.

EPF Eligibility Criteria

• Employees earning less than Rs.15,000 per month must mandatorily enroll in the EPF scheme.
• Companies with 20 or more employees are legally required to register under EPF.
• Smaller businesses with fewer than 20 employees can voluntarily join the scheme.
• Employees earning more than Rs.15,000 can also join EPF, but they need approval from the Assistant PF Commissioner.
• The EPF scheme is applicable across India, except in Jammu and Kashmir.

Ways to Check EPF Balance

Employees can check their Employee Provident Fund (EPF) balance using any of the following methods:

• EPFO Portal: Log in to the EPFO member portal with your UAN and password to view your balance under the member ID.
• UMANG App: Download the Unified Mobile Application for New-age Governance (UMANG) app to check your EPF balance, raise claims, and track transactions.
• Missed Call Service: Give a missed call to 011-22901406 from your registered mobile number to receive your EPF balance details.
• SMS Service: If your UAN is activated, send an SMS in the format EPFOHO UAN to 7738299899 to receive your balance details via text message.

The Role of EPFO: Guardians of Social Security

The EPFO is a statutory body under the Ministry of Labour and Employment, Government of India. It oversees the regulation and management of provident funds, pension schemes, and insurance schemes for the workforce. The organisation's primary objectives include:

• Ensuring every employee has a single EPF account.
• Facilitating easy compliance for employers.
• Enhancing online services for reliability and efficiency.
• Encouraging employees to save for retirement.

Steps to Activate UAN on the EPFO Portal

• Visit the official EPFO website.
• Click on "Activate UAN" under the 'For Employees' section.
• Enter your UAN, PF Member ID, Aadhaar number, or PAN.
• Validate the details using an OTP sent to your registered mobile number.
• Set a password to complete activation.

Services Available After Login

• Download UAN Card and EPF passbook.
• Check PF linking status and associated member IDs.
• Track PF transfer claims and modify personal details.
• Update KYC details (Aadhaar, PAN, and bank information).

Supporting Documents Required

• Birth certificate, school certificate, or passport for date of birth correction.
• Aadhaar or PAN card for name correction.
• Joining/exit letter for correcting the joining or leaving date.

EPF Passbook: Checking PF Account Statement

The EPFO passbook is a detailed record of contributions made by the employer and employee.

How to Download EPF Passbook

• Visit the EPF Passbook Portal.
• Log in using UAN & password.
• Select "Download Passbook".

Partial PF Withdrawal (Based on Needs)

• Buying a house: Up to 90% of PF balance (after 5 years).
• Marriage expenses: 50% of employee’s contribution (after 7 years).
• Medical emergencies: 6 months of basic salary or total employee contribution.

Full PF Withdrawal (Allowed Under Specific Conditions)

• Retirement (Age 58 or above).
• Resignation due to permanent disability.
• Permanent relocation abroad.
• Death of the EPF member (funds transferred to nominee).

Why Avoid PF Withdrawal Before 5 Years?

• Loss of Tax Benefits: Withdrawals before 5 years mean losing Section 80C tax deductions.
• Tax Deduction at Source (TDS): Withdrawals above ₹50,000 before 5 years attract a 10% TDS.
• To avoid TDS, submit Form 15G/15H to the Income Tax Department.

EPFO Grievance Redressal Process

Employees who face issues related to their Provident Fund (PF) accounts can lodge a grievance through the EPFO Grievance Portal. This platform allows employees to register complaints regarding:

• Withdrawals
• PF settlements
• Account transfers
• Pension settlements
• Other EPF-related concerns

Steps to Register a Grievance on the EPFO Portal

• Visit the official EPFO grievance portal: EPFO Grievance Portal
• Click on 'Register Grievance' on the top navigation bar.
• Fill in the grievance registration form with the required details:
  • Select your status: Choose from Employer, Employee, or EPS Pensioner.
  • Provide your PF account number.
  • Enter the details of your regional EPF office.
  • Provide establishment details: Name and address of your employer.
  • Fill in your personal information: Name, address, PIN code, country, phone number, and email ID.
  • Select the grievance category: Choose from withdrawal issues, account transfer delays, pension-related concerns, or other EPF-related matters using the drop-down menu.
• Upload supporting documents (such as a grievance letter).
• Complete the CAPTCHA verification.
• Submit the grievance form.

EPFO Toll-Free Helpline

For queries related to UAN (Universal Account Number) or KYC (Know Your Customer) updates, individuals can contact EPFO's toll-free helpline:

📞 1800 118 005

Procedure to Withdraw Funds from an Unclaimed EPF Account

If an EPF account remains unclaimed for an extended period, employees can withdraw the funds by following a simple process:

• Visit the EPFO website and download the necessary EPF claim form.
• Fill out the form with the required details.
• Submit the completed form at the nearest post office.
• Processing time: The PF amount is typically credited to the individual’s bank account within 3 to 20 days after successful verification.

Updating KYC Details on the EPFO Portal

To ensure smooth transactions and hassle-free EPF withdrawals, employees should keep their KYC details updated on the EPFO e-Sewa portal.

Steps to Update KYC Information

• Log in to the UAN EPFO portal using your credentials.
• Navigate to the ‘Manage KYC’ section.
• Select the document type you wish to update (PAN, Aadhaar, Ration Card, etc.).
• Enter the document number and ensure the name matches the document.
• If applicable, update the expiry date of the document.
• Save and submit the details.
• Employer verification: Your employer will review and approve the KYC update.
• Confirmation: Once approved, you will receive an SMS notification confirming the update.

Frequently Asked Questions (FAQs) on EPF

• Is there an age limit for employees to join the EPF?
  No, there is no specific age restriction for becoming a member of the Employees’ Provident Fund (EPF). However, individuals above the age of 58 are not eligible to enroll in the Employees’ Pension Scheme (EPS).
• Can an employee voluntarily contribute to EPF after leaving their job?
  No, once an employee resigns or leaves their job, they can no longer contribute to their EPF account. Contributions to the EPF require both employer and employee participation.
• What actions are taken to recover EPF dues from defaulting employers?
  In cases of non-compliance, the EPFO may initiate recovery proceedings under Section 14 of the EPF & MP Act, 1952. Measures include:
  - Legal prosecution of the employer
  - Recovering dues from associated debtors
  - Freezing of bank accounts
  - Seizure and auction of assets
  - Employer detention or arrest
• Can an apprentice become an EPF member?
  No, apprentices are not eligible for EPF membership during their training period. However, once they transition into permanent employment, they are required to enroll in the EPF.
• Is an employer allowed to reduce their EPF contribution?
  No, employers are legally obligated to contribute their designated share to the EPF. Any attempt to reduce the contribution is a criminal offense under EPF regulations.
• How is EPF contribution calculated for employees receiving daily or partial payments?
  The EPF contribution is determined based on the total salary disbursed within a calendar month, regardless of whether an employee is paid daily, weekly, or partially.
• What steps should an employee take if they are denied EPF membership?
  Employees should first report the issue to their employer. If the matter is not resolved, they can escalate it to the Regional Provident Fund Commissioner at their nearest EPF office for further action.
• Can an employee independently enroll in the EPF?
  No, individual employees cannot directly enroll in EPF. They must be employed by an organization that is covered under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.
• Can an employee choose to opt out of EPF?
  No, once an employee qualifies for EPF, participation is mandatory. Opting out is not permitted under EPF regulations.