Employee Provident Fund (EPF)

The Employees’ Provident Fund (EPF) is a retirement savings scheme available to all salaried employees in India. Administered by the Employees’ Provident Fund Organisation (EPFO), a statutory body under the Ministry of Labour and Employment, the scheme ensures financial security through employer-employee contributions. Both parties contribute 12% of the employee’s basic salary toward the fund, offering benefits such as pension, insurance, and lump-sum withdrawals at retirement.

While EPF secures your long-term future, diversifying with fixed deposits (FDs) can enhance your savings with stable returns. Bajaj Finance FD offers up to 8.60% p.a., providing a risk-free way to grow your money alongside EPF. Click here and book an FD now!

In this scheme, your employer deducts a fixed sum from your salary each month and contributes an equal amount to your EPF account. You can withdraw these savings post-retirement or even avail of loans against them for urgent financial needs.

For a well-rounded investment approach, consider fixed deposits as a parallel savings option. Unlike EPF, which accumulates over time, an FD allows you to invest a lump sum for a fixed tenure at an assured interest rate. This helps you balance long-term security with short-term liquidity. Check FD rates here.

The EPFO stands for the Employees' Provident Fund Organisation. It is a statutory body that the Government of India created. It is one of the largest social security organisations in India. The EPFO came into being with the Employees Provident Fund ordinance that was passed in 1951. It later became a part of the modified Employees Provident Fund Act in 1952 and is currently a part of the Employees Provident Funds and Miscellaneous Provisions Act 1952.

• Employees' Pension Scheme (EPS)
• Employees' Provident Funds Scheme (EPF)
• Employees' Deposit Linked Insurance Scheme (EDLI)

• Ensuring each employee maintains a single EPF account.
• Simplifying the process of compliance.
• Enforcing consistent adherence to EPFO's established rules and regulations.
• Enhancing the dependability of online services and introducing enhancements to their provisions.
• Enabling convenient online access for all member accounts.
• Drastically reducing claim settlement time from 20 days to 3 days.
• Promoting and fostering voluntary compliance initiatives.

Since EPFO provides long-term financial security, it’s essential to complement it with other stable investment options. A fixed deposit ensures predictable growth, making it a great addition to your financial plan. Bajaj Finance FD offers competitive interest rates of up to 8.60% p.a., allowing you to grow your savings without market-related risks. Book your FD today.

Also read: How to Find PF Account Number

Employee Provident Fund subscribers can access their accounts online for operations like withdrawals and balance checks. The UAN, a unique 12-digit number, consolidates multiple member IDs from different employers. It provides services like passbook downloads, KYC updates, and claim filings. To use these services, activate your UAN online when switching jobs.

To be eligible for the EPF Scheme you must meet the following criteria:

• You must be employed in an organisation with more than 20 employees.
• You must be between the ages of 18 and 54 years.
• You must have a basic monthly salary of Rs. 15,000 or more.

The Employees' Provident Fund Organization (EPFO) offers a range of services to its members. Here is a list of some of the services typically provided:
 

1. Online registration

EPFO has an Online Registration of Establishment's portal that helps you access or register your EPF account. If your organisation falls under the list already available with the EPF and Miscellaneous Provisions Act 1952, you can easily register online. If your organisation is not listed, the EPFO allows you to sign up for your account voluntarily. The EPFO also has a helpdesk that you can access on the toll-free number 1800 118 005.
 

2. Generate UAN details of other members online

The UAN is a unique code that brings all your PF accounts under one head. So, on behalf of your company, you can enquire about the PF details of all company members by visiting the EPFO member log-in portal. All you have to do is generate an OTP to authenticate your identity, and then you can view various details of other members. This allows you to keep all your employee details under the umbrella of the company UAN.
 

3. Pay for EPF subscription online

Subscribing for an EPF comes with a lot of benefits. However, to ensure that you continue gaining from these benefits, you need to ensure that you pay the annual subscription fee. To make this convenient for you, the EPFO has a tie-up with the SBI, which enables you to pay the subscription fees online using the Net Banking option. This option works regardless of which bank account you have.
 

4. Generate the EPF challan online

The EPFO also helps you complete your registration with the E-challan online. Once you register at the EPFO e-Sewa portal, you get a unique ID and password. Using these, you can submit the data with your digital signatures and save it in a PDF. Once you print it out, you can have it approved, after which your E-challan will be generated online.
 

5. Address your grievances

There can be numerous instances where you have certain doubts, queries or complaints to make to the EPFO. The grievance management system for EPFO is a department that is adept and ready to reply to all your doubts, complaints, and issues. All you have to do is fill up a grievance registration form. In this form, you have to fill in all the relevant details like your membership status, PF number, related EPFO office, and name of your establishment, address of your establishment, your name, address, phone number, and Email ID. Once you have filled in all these details, you can go ahead and describe the details of your grievance in the 'Grievance Description' section. The grievance management system also lets you send reminders in case your grievances have not been addressed. You can also view the status of your registered complaint by entering the grievance registration number, password and captcha code.
 

6. Transfer claims online

This service enables you to transfer your claims as and when you like. It also lets you view and manage all your transfer claims. Thus, you have the convenience to view, verify, approve and submit claims online.

Additional Read: How to transfer PF account

Registering with your company's EPF account will help your organisation provide all your employees with the facility of EPF India. Not only does this bring credibility to your organisation and help you create a responsible image for your company, but it also helps your employees feel more satisfied in their respective roles.

Here is the list of the details you need to provide when registering for EPF.

1. Details of the owner, including details of the designation and the address of the directors and the partners.
2. Name and address of your company.
3. Details of the head offices and branches.
4. The date of registration or incorporation of your company.
5. Details of all your employees and the strength of employees.
6. The type of work done by your organisation.
7. The legal details of your organisation.
8. The particulars related to wages and salaries.
9. The details of the bank through which you perform all business transactions.
10. The company's PAN details.
11. Submit a filled-out Performa for Coverage, along with submitting Form A and Annexure 1.

1. Be ready with all your documents.
2. Visit the EPFO e-Sewa portal and read and follow all the instructions.
3. Fill in all the details and submit the application form.
4. Generate and enter the captcha code and click on the 'Get Pin' option.
5. Enter the secret PIN that was generated on your registered mobile number or email ID.
6. Click on 'submit' and download the completed PDF.
7. Save and take a copy of the PDF.
8. Submit this copy later at the EPF office.

Also read: How to Reset UAN Password

The EPF is a social security scheme that aims at providing your employees financial security in the future. This scheme takes contributions from you (the employer) individually for each of your employees and takes contributions from each of your employees, which you deduct from their salaries every month and submit towards their Employee Provident Fund on their behalf.

So, broadly your EPF contribution as an employee is divided into two parts.

EPF contribution of employee

This is the contribution that is made by you as an employee. This contribution accounts for 12% of your salary, which is deducted on a monthly basis by your employer.

PF contribution of employer

This part contributed by your employer is also 12% of your monthly salary amount, which the employer contributes as a separate fund from their accounts. This 12% deduction gets divided in the following ways and is then contributed to your EPF account.

• 3.67% of the section would go towards the EPF.
• 8.33% would go towards the EPS(Employee Pension Scheme).
• 0.50% would go into the Employee's Deposit Link Insurance Scheme.
• 1.10% would go into the EPF Admin Charges.
• 0.01% would go into the EDLIS admin charges.

Now that you know the various divisions of the EPF, the table illustrated below will help you understand how EPF works. First, let us assume that you have just joined a company with a salary of Rs. 20,000. Now have a look at the table below.

1. Monthly balance = Employee contribution+ employer contribution
2. Interest amount = [Monthly balance X interest rate]/12

This is how your EPF account works and helps you build your savings over time. You can make these calculations yourself and then verify the same by checking your EPF account from time to time

The current interest rate offered by the EPF scheme for the financial year 2024-25 is 8.25%.

The interest earned on investments in a PF online account remains tax-free under specific conditions.

Interest is credited only to active PF accounts of employees who have not yet retired. However, if the account becomes inactive, the accumulated interest is taxed as per the employee’s applicable EPF tax slab.

It is important to note that the Employees' Pension Scheme (EPS) contribution does not earn interest. However, members become eligible to receive a pension from the accumulated amount upon reaching 58 years of age.

The Employees’ Provident Fund (EPF) is a long-term savings scheme where both employees and employers contribute a percentage of the employee’s salary each month. The employee contributes 12% of their basic salary, while the employer contributes 3.67% towards EPF and 8.33% towards EPS. Interest on EPF is calculated monthly but credited at the end of the financial year.

To easily estimate your EPF balance, use an EPF Calculator, which helps calculate accumulated savings, interest earned, and the final retirement corpus based on salary and tenure.

The interest on EPF contributions is calculated monthly, with the annual interest rate divided by 12 to determine the applicable monthly rate. For example, if the interest rate is 8.5% per annum, the monthly rate would be 0.7125%.

Employees contribute 12% of their monthly salary to their EPF account, while employers contribute 3.67% towards EPF and 8.33% towards EPS. If an individual earns Rs. 15,000 per month, their 12% contribution amounts to Rs. 1,800, while the employer’s 3.67% contribution adds Rs. 550. This results in a total EPF contribution of Rs. 2,350. Applying the monthly interest rate of 0.7125%, the interest accrued for that month would be Rs. 16.75.

It is important to note that while interest is calculated every month, it is credited to the EPF account only at the end of the financial year.

EPF forms are essential for carrying out various activities related to an EPF employee member’s account. Whether it is registration, PF transfer, withdrawal, or availing loans, submitting the correct EPF form is mandatory to complete these processes.

The table below provides an overview of different EPF and EPS forms along with their respective purposes:

These forms ensure smooth processing of EPF and EPS-related requests, allowing employees to access their provident fund benefits efficiently.

If you switch jobs, you can transfer your EPF balance using the same Universal Account Number (UAN). Follow these steps to initiate the transfer:

• Use the same UAN: Your EPF account remains linked to your UAN, allowing you to transfer funds easily when changing jobs.
• Register on the EPF portal: Visit the official EPF member portal, complete the registration process, and obtain your login credentials.
• Login to the portal: Use your credentials to access the Online Transfer Claim Portal for initiating the transfer.
• Submit the transfer request: Request an EPF transfer by providing your previous and current employment details.
• Check eligibility for online transfer: If eligible, you can process the transfer without submitting Form 13.
• Enter employment details: Select ‘Request for Transfer of Funds’ and input details of your previous employer.
• Employer authentication: Your previous or current employer must verify and approve the transfer request.
• Receive a verification PIN: Once submitted, you will receive a PIN on your registered mobile number.
• Track your request: Use the tracking ID issued to monitor the status of your EPF transfer.

1. Retirement saving

EPF provides a structured way to save for your retirement years. Both you and your employer make regular contributions, creating a substantial corpus over time.

2. Tax advantages

Your contributions to the EPF are tax-deductible under Section 80C of the Income Tax Act. Additionally, interest earned, and withdrawals (at maturity) are also tax-exempt.

3. Financial safety

The EPF is a government-backed scheme, providing security and guaranteed returns on your investment.

4. Partial Withdrawals

Under specific circumstances (medical emergencies, home purchase, etc.), you can make partial withdrawals from your EPF balance before retirement.

Employees can withdraw their EPF balance either partially or fully, but withdrawals are allowed only under specific conditions.

Complete EPF Withdrawal

An individual can withdraw the entire EPF balance under the following circumstances:

• Retirement from employment.
• Unemployment for more than two months.
• Switching jobs or career changes, provided the unemployment period exceeds two months.

Partial EPF Withdrawal

Employees can withdraw a portion of their EPF savings under these situations:

• Marriage expenses (self or dependents).
• Higher education funding.
• Purchasing land or building a house.
• Repayment of a home loan.
• Renovation or repair of an existing house.

EPF withdrawals should be made only when necessary, as EPF savings provide long-term financial security.

Withdrawing from EPF after completing 5 years of service is tax-free. If you withdraw more than Rs. 50,000 before completing 5 years, TDS (Tax Deducted at Source) will be applied. You can claim tax deductions under Section 80C of the Income Tax Act for annual EPF contributions up to Rs. 1.5 lakh.

If your withdrawn amount is lying and you don’t know what to do with that amount, you can consider, fixed deposit.

FDs are one of the safest investment options that offers guaranteed returns. Bajaj Finance is one of the most trusted financial institution that offers one of the highest interest rate of up to 8.60% p.a. on their fixed deposit.

A dormant EPF account can be a tricky affair. Not only does a dormant account force your cash to get held up, but it also eliminates the potential use that you can make from the cash. With approximate Rs. 26497 crore lying unclaimed in EPF accounts dormancy of accounts is beginning to get more common.

Follow the steps listed below if you have an unclaimed account and plan to liquidate it immediately:

1. Log on to official EPFO website.
2. Select the 'For Employees' section, and under that click on 'Inoperative A/c Helpdesk'.
3. Once you do that, you will be directed to the helpdesk page.
4. On this page, select the option '(a) First Time User Click Here to Proceed'.
5. Once the next section arrives, describe why your account has been inoperative in the 'Problem Description' section.
6. Once done, you will have to provide all your relevant details like EPF no, company name, and more on the next page. After that, click on 'Next'.
7. The next page will require you to enter all your KYC details like Aadhaar number, PAN number, bank account number and IFSC code.
8. After that, click on the 'Generate PIN'. This will generate a notification that says, 'PIN successfully sent to your mobile.
9. Once done, enter the pin and click on 'Verify PIN and Submit'.
10. Once you have completed submission, you will receive an SMS that contains your reference ID. You will also receive an 'Acknowledgement' on your screen.
11. You can then log on to the Helpdesk, log in as a registered member and enter your mobile number and reference number to check the status of your application.
12. The request will be transferred to the field officer, who will then get in touch with you and assist you with steps to be

Withdrawing funds from your unclaimed EPF account is a relatively simple process. All you need to do is identify the account and take the following steps to complete the withdrawal.

1. Log on to the EPFO website and fill up the EPF claims form.
2. Submit this form at your nearest EPFO office, either by post or in person.
3. You will receive the amount within a period of 3-20 days.

Since the EPF stores and grows your money over time, it works as an invaluable finance reserve. There are various circumstances where you might feel the need for money. In such a situation, it is essential to be aware of the occasions where you can use your EPF as a source of funding. These include marriage, medical emergencies, construction or purchase of a home, repaying an existing home loan, further education, alteration or home repairs and renovations.

While you can partially take a loan when you face emergencies, withdrawing the entire amount of your EPF corpus will eliminate the more significant benefits that you may have reaped if you had allowed the EPF to grow over a longer term.

Take a look at the two most important reasons why you shouldn’t withdraw your EPF before maturity.
 

1. Your amount will be taxed

If you end up withdrawing any amount from your EPF before 5 years, the amount you withdraw will get added to your taxable income. Also, if the amount you withdraw before a period of 5 years is more significant than Rs. 50,000, then that amount is eligible for a tax cut of 10%. However, you can be exempted from paying this amount if you submit the form 15G or 15H along with your IT returns.
 

2. You won’t receive the benefits of Section 80c

If you claim benefits against your EPF contributions under Section 80C and withdraw the EPF in its entirety, then in such cases, the interest earned on your contribution would be taxed as income from other sources.

1. Online PF withdrawal process

• Visit the EPFO website and log in using the UAN and password.
• Click on the 'Manage tab' and verify your KYC details.
• Then you can visit the 'Our Services' section and click on the title that says 'Claim' from the drop-down list.
• Once you do that, choose the type of withdrawal you want to make under the section 'I Want to Apply for'.
• A drop-down box would then show you the types of withdrawal that you are eligible for.
• Once you select the type of withdrawal, your claim is complete. The claim is then forwarded to the employer for approval.
• Once your EPF withdrawal online process gets approved, the amount you requested will be credited directly to your account within 10 days.

2. Offline PF Withdrawal Process

• Get a PF withdrawal form and fill it carefully.
• Once this is done, organise all your KYC document photocopies and get them attested by a bank manager, gazetted officer, magistrate, or public notary officer.
• Prepare a letter stating why you wish to withdraw your EPF.
• Submit this to the regional EPF office.
• Once your application has been successfully approved, you will receive the amount you requested within 3 months of the date of application.

To check your EPF (Employee Provident Fund) claim status online, follow these steps:

1. Visit the EPFO portal and then click on 'Our services' and then select the 'For employees' tab.
2. After that, click on 'Know your Claim Status'.
3. On the next page that appears, enter your UAN, followed by the captcha code.
4. On the next page, you will have to enter your state, select the EPF office from the drop-down menu, enter your establishment code and enter your account number.
5. Once this is done, click on the 'Submit' button to check the status of your claim. Your claim status will be sent in SMS format on your registered mobile number.

UMANG is an application that the government launched to help you access all government-related services within one platform. It is designed to bring more flexibility at your fingertips. You can access and pay utility bills on this platform and easily access all your government investment accounts. The newest feature it offers is to help you check your EPF balance online.

Follow these steps to check your EPF balance

1. Visit the EPFO option when you start the application.
2. Go on the 'Employee Centric Services.
3. Click on the 'View Passbook' selection and enter your UAN when asked.
4. You will then be prompted to generate an OTP.
5. Generate an OTP and enter the OTP you receive.
6. This will unlock your 'View passbook' option enabling you to see all your EPF account details.

The e-Sewa is a portal that helps you carry out several tasks related to EPF conveniently without having to visit the EPFO offices physically. Using this portal will help you perform several tasks like claim your provident fund amount, check the status of your claim and even update your KYC information. To begin using the several facilities offered by EPFO e-Sewa, you need to register your organisation on the portal.

Knowing these facts and features will help you understand your EPF account better so that you can enjoy the benefits during times of need..

The Employees’ Provident Fund Organisation (EPFO) offers an efficient grievance redressal mechanism for resolving member concerns. Members can lodge complaints related to EPF accounts, settlements, withdrawals, or transfers via the EPF grievance system. This service ensures a transparent and timely resolution of issues, enhancing the user experience for millions of employees.

To submit grievances, members can access the EPFO’s member site and follow a simple process. The system enables tracking and updates, ensuring accountability. The key steps are as follows:

1. Visit the EPF member website.
2. Navigate to the grievance section.
3. Log in with your Universal Account Number (UAN) and password.
4. Select the complaint category, such as withdrawal, settlement, or account details.
5. Provide relevant information and upload supporting documents if needed.
6. Submit the grievance and note the unique registration number.
7. Use the registration number to track the complaint status.
8. The assigned officer will review the grievance.
9. Receive regular updates via SMS or email.
10. If unsatisfied, escalate the complaint within the platform.
11. Resolution is typically provided within 15-30 working days.

For a detailed guide, visit EPF grievance and learn how to utilise the EPFO grievance platform effectively.

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