The Employees’ Provident Funds and Miscellaneous Act, passed in 1952, established the EPF as the primary plan. 12% of the employee’s base income and dearness allowance goes to the EPF, with the employer contributing 12%. The current EPF interest rate is 8.10 percent per year.
EPFO is the acronym for (Employee Provident Fund Organization)
Employers are encouraged to put money aside for their golden years through the Employees’ Provident Fund Organization (EPFO), a private, non-profit organization. The Ministry of Labour and Employment, Government of India, is in charge of the organization founded in 1951.
Indian and foreign workers are covered under the organization’s programs (from countries the EPFO has signed bilateral agreements).
The EPFO’s primary goals are outlined in the following paragraphs:
- To make sure that each employee has only one EPF account.
- Easy compliance is essential.
- Regularly check that organizations adhere to the EPFO’s laws and regulations.
- Online services must be trustworthy, and their amenities must be improved.
- Easy online access to all member accounts.
- Reduction of claim settlements from 20 to 3 day time frames.
- Encouraging and promoting self-regulation.
The following is a list of the many EPFO programs:
- Workers’ Provident Funds Scheme of 1952 (EPFS) (EPF)
- The Employees’ Pension Plan of 1995 (EPSP) (EPS)
- Workers’ Compensation Insurance Plan of 1976 (EDLI)
Service Providers of the EPFO
Listed below are just a few of EPFO’s many offerings:
- To help employees track inoperable accounts that do not accrue any interest, the EPFO set up the Inoperative Accounts Online Helpdesk on February 15, 2015. Staff can look up these accounts and take money out or transfer it to a different Member ID if they so choose. An employee’s previous job history is needed to identify inactive accounts.
- With the use of the UAN, the EPF withdrawal amount can be done online effortlessly. Workers who have not worked for more than two months can take out their EPF. However, the UAN must be linked to the employee’s bank account information and Aadhaar.
- A Certificate of Coverage (CoC) can be generated online by EPF members employed in countries with Social Security Agreements with India. EPFO has created a centralized online platform for this purpose.
- With the help of the EPFO’s new IT tool, exempted companies can file their monthly returns online without difficulty.
- For fellows of the Employees’ Provident Fund (EPF), the EPFO has launched the Unified Mobile Application for New-age Governance (UMANG). Employees can use the UMANG app by entering their UAN and password. The UMANG app offers a variety of features, including the ability to examine an employee’s EPF account statement and make changes to personal information.
- To make an EPF Transfer from an old Member ID to a new one, employees can use the UAN online. A paperless, hassle-free, and simple process is what you’ll get.
- Companies can register online via the EPFO portal’s Online Registration of Establishments (OLRE). The online availability of the PF code allotment letter is also beneficial to employees.
- The payment of PF is required to be made online by all organizations. Kotak Mahindra Bank, ICICI Bank, Axis Bank, and HDFC bank are the ten banks currently having agreements with the EPFO to collect dues. Allahabad Bank is the only bank that does not have an agreement.
- For members who have activated their UAN, a missed call or SMS to 7738299899 or a missed call to 011-22901406 would provide access to information such as their PF balance, previous contributions, and the status their KYC. For non-payment of EPF, employers will also be sent an SMS.
- It will be possible to access and download the EPF passbook and view and check on the progress of EPFO members’ claims via UAN.
- A member can file an online grievance if there is a problem with their pension settlement, transfer, or withdrawal. The EPFO places a high value on grievance redress and responds to them quickly. 80% of complaints are resolved within seven days, and 97% of complaints are resolved within 15 days after being filed. Grievances over the Employees’ Retirement Income Security Act (ERISA) have dropped dramatically since the EPF’s concerns have been closely monitored.
Benefits from the EPF
Below are a few benefits of the EPF plan:
- It aids in long-term financial planning.
- A single, lump-sum investment is not required. A substantial sum of money can be preserved over time by making monthly deductions from an employee’s salary.
- It may be able to assist a worker’s finances in the event of an emergency.
- It aids in preserving a comfortable standard of living in old age.
Economic Policy Foundation (EPF) Interest Rate
The PF interest rate currently stands at 8.10 percent. A year’s worth of interest in an EPF account can be calculated with relative ease. At the end of the year, this amount is added to the contributions made by both the company and the employee.
Eligibility for the EPF
Eligibility requirements for the Employee Retirement Income Security Act (ERISA) are as follows:
- In order for salaried employees earning less than Rs.15,000 per month to participate in the Employees’ Provident Fund (EPF), they must register.
- If a company hires more than 20 people, it must participate in the Employee Retirement Income Security Act (ERISA).
- Companies with less than 20 workers can join the Employee Retirement Income Security Act (ERISA).
- EPF accounts can be opened by employees who earn more than Rs.15,000, but the Assistant PF Commissioner must approve them.
- The EPF scheme’s necessities apply to the entire country, except Jammu & Kashmir.
Several ways to find out your EPF balance
There are four ways to find out how much money you have left in your EPF account:
- Using the EPFO member portal, you may quickly and easily see your EPF balance. It would help if you used your UAN and password to access your EPF account. To see your EPF balance, you must first log into the system and enter your member ID.
- To track your EPF balance on your mobile phone, you can download the Unified Mobile Application for New-age Governance (UMANG) app. This software allows you to file and follow up on insurance claims.
- From your registered phone number, you can check your EPF balance, including making a missed call to the phone number 011-22901406.
- For the EPF balance check, you can send an SMS to 7738299899 with your UAN active.
Login to EPFO’s portal
The initial step in logging in to the EPFO site is the activation of UAN. On the EPFO website, this is a simple process.
Use UAN Login for the activities listed below:
- The UAN Card and Passbook can be downloaded for free.
- See how PF linkage is progressing.
- View the IDs of current and former members.
- Please check your PF transfer claim’s current status.
- Change your personal information on the EPFO website
- Ensure that the information provided by the KYC process is current.
Using an employee’s UAN and password, they can access the EPF’s member portal. Employers can also use their permanent login ID and password to access the website.
EPF Joint Declaration Form
You and your employer must sign an EPF joint declaration form to rectify the date of birth in your PF account, the date of joining, your name in UAN, and the date of exit from your employment.
The following are the specifics of the joint declaration of the EPF:
• The Name of the Father or the Husband
• Employee’s First and Last Name
• Employee’s Date of Birth
Number of the Provident Funds Account
• Exit Date from Company
• Date of Employment
• The Employee’s Gender
The EPF joint declaration is available for viewing and downloading in the following file format:
- Member and Employer’s Joint Declaration
- Submission Date
- To the Regional Commissioner of the PF.
- Include the location of your local Peace and Freedom Party (PF) commissioner.
- As stated in your Joint Declaration by Member and Employer, this is the same topic.
- Enter name of your company and your name.
- Include your establishment code and the name of your business.
- Your Social Security Number (SSN).
- PF Number
Documents Required for the Joint Declaration of Participation in PF
- Documentation demonstrating the reason for the departure
- To update your date of birth, you must produce a copy of your school certificate, mark sheet, Birth certificate, or passport.
- Documents with your name should be attached when requesting a name change.
- You must submit your joining letter or leaving letter if you are changing your arrival or departure date.
- The EPF joint declaration form must be signed and include all documentation that has been validated.
EPFO Employee log in
Logging onto the EPFO portal is a simple process for an employee. After logging in with the UAN and password, the employee will be able to view their pay stubs at https://epfindia.gov.in/site en/index.php. You can claim PF, update your KYC information, check your PF balance, and transfer funds on the portal.
Employer Login for the EPFO
The first time an employer logs onto the EPFO employer portal (https://www.epfindia.gov.in/site en/For Employers.php), they must generate a user name and password. Once an employer has logged into the site, they can approve the employee’s KYC information.
Passbook for Employee Provident Funds
You can see your EPF account statements and print or download them using the EPFO Passbook feature. The EPF passbook is available to all members who have registered their UAN on the EPFO portal.
The EPFO passbook contains information such as the employee’s name, establishment ID, EPF scheme details, and the name of the EPF office, amongst other things.
After a job change, EPFO account holders can adjust their leaving date online
Users who have changed occupations can now quickly amend their “date of leaving” on EPFO’s official website. Employees were formerly unable to use this facility. Employees could only update their exit dates online if an employer employed them.
How to change your departure date online
- Check out the official EPFO site
- Enter your Universal Account Number (UAN) and password to access your account.
- In the “Manage” area, click on the “Edit” button.
- Choose ‘Mark Exit’ from the menu.
- Your PF account number will appear in a drop-down menu when clicking on “Select Employment.”
- Enter your departure date and the reason for your departure.
- Click on “Request OTP”.
- Your Aadhaar card’s associated mobile number will receive the OTP.
- Enter the OTP in the space provided.
- Tick the box.
- Press the “Update” and “OK” buttons when you’re done.
- Once the departure date has been correctly revised, you will receive a notification confirming this.
- Once you’ve done that, click on “View” in the upper right-hand corner and then “Service History.”
- Both your EPS and EPF accounts now show the date you joined and left.
After two months of quitting your job, you can note your departure date.
Updating the expiration date is critical
Claims and settlements are more likely to go through if you update your leaving date. Your employment will not be considered continuous if your termination date is not updated or incorrectly stated. You will be liable for paying tax on any interest collected during the interim period.
EPF money can be used for various purposes, including the down payment on a home, the cost of a wedding, and even some medical bills. It is possible to withdraw a certain amount of money, depending on why. Partial withdrawals are subject to a lock-in period, depending on the withdrawal purpose.
There are numerous scenarios in which the entire PF balance can be withdrawn. Resignation owing to permanent total physical/mental disability, permanent relocation to another country, the death of a member, etc., are a few examples.
Online PF Withdrawals
For these reasons, EPF should not be taken from employees before five years of service:
Suppose an individual has been claiming Section 80C of the Income Tax Act and withdraws their PF money altogether. In that case, the interest that has been collected on the contribution of their employe must be taxed.
After five years of service, you will be taxed on the amount you withdraw from your PF account, regardless of how long you’ve worked. Within five years of making the withdrawal, if the amount is more significant than Rs.50,000, there is a 10% discount on the amount. Taxpayers are exempt from paying this amount if they file Forms 15G and 15H with the Internal Revenue Service (IRS).
Without the employer’s signature, EPF can be withdrawn
Realizing that obtaining an employer’s endorsement to allow for a PF withdrawal has caused significant problems for many employees, the EPFO has circumvented the process so that now anyone can withdraw their funds without the need for an employer’s endorsement. Employees can now withdraw funds from their EPF accounts by linking their Aadhaar cards to their UANs, thanks to the advent of the UAN in the EPF. However, there are two ways to make a withdrawal without the signature of the employer now: with or without an Aadhaar card.
- Employer signature is no longer required with the simple connection of an employee’s Aadhaar card to their UAN.
- Employees should ensure that their Aadhaar card and bank account information is entered into the EPFO’s member site to expedite the procedure.
- An employer should check aadhaar card and bank account details before hiring a new employee.
- A withdrawal request will not be processed unless the user’s UAN has been activated.
- Download Form 19-UAN (for PF withdrawals) and Form 10C-UAN (for pension scheme withdrawals) if you’ve satisfied these requirements.
- After completing the form with your personal information and the employee’s reasons for leaving or joining, click the “Submit” button. Ensure that the employee’s Aadhaar card and bank account information match. The application could be rejected or delayed if there are any problems.
- A canceled check and the completed form must be submitted to the local EPF office.
Without an Aadhaar Card, you can’t make a withdrawal
- Although it may be an inconvenience, follow the steps outlined below if this is your only option.
- Form 19, Form 10C or Form 31 should be downloaded from the EPFO’s member portal, depending on where the withdrawal will be made.
- It ought to be signed by a Gazetted officer or the manager of a bank or a magistrate once the form has been filled out. An authorized signatory must sign every page of the form.
- When stating a reason for not getting the employer’s signature, use “Non-cooperation.”
- With a 100 rupee stamp paper, an indemnity bond must be attached, including payslips, appointment letter, employment ID, and Form 19.
- Submit your regular KYC documents, the attested form, the canceled check, and the other verification papers to the regional EPF office as proof of address and identity.
Claim Status for EPF
EPF fund withdrawal requests can be made online through the EPFO portal by members who have made up their minds to do so. Online access to the EPFO portal allows members to check the status of their claims.
Employees can also call 011-22901406 from their registered mobile phone numbers to check the status of their claim. As an alternative, you can use SMS or the UMANG app to see how your EPFO claim progresses.
PF status can be checked by providing the following information by the member:
- Details of one’s occupation
- The extension code, if it is necessary
- The EPF regional office of the employer.
- UAN (Uniform Resource Identification Number) (UAN)
Signed by the EPFO’s digital fingerprint
EPFO has implemented digital signatures for employers to streamline the transfer claims process and ensure transparency. Employers’ use of digital signatures allows them to approve claims more quickly and easily. The digital signature of the employer is required when an employer moves from one employer to another, and this is where it comes into action. Form 13 was filled out and signed by the employer, then submitted to the regional EPF office by the employer. The EPFO’s member portal has made it easier for you to complete the transaction. Employers must apply for a digital certificate, which includes their personal information, such as their name, email address, APNIC account name, public key, and the nation in which the employer is based. Certifying authorities provide digital certificates that include this key, which contains the information needed to populate the EPFO’s member portal.
Dissatisfaction with the EPFO
There is a section of the EPFO’s member portal for employees who wish to file a grievance, and they can do so by submitting an online complaint form. Due to PF withdrawals, account transfers, and the payments of a pension, employees often have complaints. Following these steps will help you file an EPF complaint if you are new to the EPFO’s member portal:
- Go to the EPFO grievance portal to file a complaint.
- On the top bar, select ‘Register grievance.’
- You will then be provided with a form for filing a grievance.
- Now, complete the registration form:
- Describe your current situation (Employer, EPS pensioner employee, )
- Enter your PF account number here.
- Once you’ve entered your regional EPF office location, click “Submit.”
- Next, enter the name of your business and the location where you operate.
- You’ll also need to provide a phone number and email address to complete the registration process.
- This is the final step, in which you must specify the type of complaint you wish to file, such as a transfer or withdrawal issue, a pension settlement issue, etc. Choose a complaint from the drop-down menu.
- Upload your complaint letter, enter the captcha, and then submit your grievance registration. “
Toll-Free Number for EPFO
UAN and KYC questions can be answered by calling the EPFO Toll Free Number 1800 118 005.
How to get money out of an EPF account that’s been left unclaimed
How to get money out of an EPF account that’s been left unclaimed
It’s pretty straightforward to get your EPF money back from an old account that you’ve forgotten about. Here’s how to get back your money from an unclaimed pension fund account:
- Once you’ve filled out the EPF claim form, you’ll need to submit it online to the EPFO.
- Postal service is required for the submission of the form.
- The PF amount will be deposited into the individual’s account within 3-20 days.
The EPFO requires a KYC (Know Your Customer) process
E-Sewa of the EPFO website allows employees to update their KYC information. –
- They must enter the manage KYC option on the UAN EPFO portal and pick the type of document they are updating on the portal, i.e., PAN, Aadhaar, Ration Card, etc., after logging in.
- This means that the document number and name of the member will need to be modified.
- In some cases, it may be essential to change the expiration dates on papers.
- Changes made in this manner can then be submitted and saved for later use.
- Then, the employer will review the information and issue an official acceptance or rejection.
- Employees receive a text message when their bosses have given their okay.
Can an employer reduce the employer’s share of EPF contribution?
In no way, shape, or form may employers cut their EPF contributions. Criminal charges are warranted for a reduction in a person’s taxable income.
Is it possible to compute an employee’s EPF contribution if paid daily or partially?
The monthly salary is taken into account while determining the contribution amount.
Is it feasible for an employee to contribute to the Employee Retirement Income Security Act (ERISA) after leaving the company?
Ex-employees can’t make EPF contributions because they no longer work for the company. Both the employer and employee must contribute equally.
Who should the employee contact to obtain PF membership as a last resort?
The employee must first approach the employer. You can get in touch with the Regional Provident Fund Commissioner if you don’t get it from your company.
Does the Employee Retirement Income Security Act (ERISA) have an age limit for EPF members?
An employee’s eligibility to join the Provident Fund is not based on chronological age. As long as an employee is under the age of 58, they cannot enter the company’s Pension Plan.