Employee Provident Fund (EPF): Benefits and Claim Process
Mini Balakrishnan
The Employee Provident Fund (EPF) is an employee fund administered by the Employee Provident Fund Organisation of India (EPFO). It requires both the employee and the employer to pay a certain sum of money at regular intervals.
The part of your pay that does not go directly into your hands is something you likely already know about if you work as a salaried employee in India. Typically, you would put this amount of money into your EPF account, a retirement savings plan for government employees.
What Is Employee Provident Fund (EPF)?
The Employee Provident Fund (EPF) is a retirement account to which the company and worker pay a certain amount each year. The Employees’ Provident Fund Organisation (EPFO) of India is in charge.
The Objective of EPFO
The Employees’ Provident Fund Organization (EPFO) has a long-term goal of being the premier social security organization in the world by providing unmatched services to its members. Through the EPF scheme, this organization aims to:
- Reduce the time required to settle disputes from one month to seventy-two hours.
- Provide hassle-free service to subscribers via EPFO offices.
- Confirm that all qualifying facilities meet the requirements of the specified law.
- Promote and encourage voluntary compliance.
- Update accounts for members in real-time.
- Offer online accessibility to the Member Profile.
The Benefits of EPF
We’ve compiled a list of the top benefits of EPF contribution, which are listed in below:
- According to Indian Income Tax Act, a worker’s contributions to his PF fund qualify for tax exemptions. Moreover, profits generated through EPF programs are tax-free. This exemption has a maximum restriction of Rs.1.5 lakh.
- It contributes to long-term savings.
- There is no need to make a single, substantial investment.
- Monthly removals allow the employees to save money.
- It might give a worker financial support in the event of an emergency.
- It contributes to retirement savings and the maintenance of a decent lifestyle.
- It’s useful for putting aside retirement savings and keeping up a decent standard of living.
What Is The Rate of Interest For EPF?
The current interest rate on EPF is 8.10%. This interest rate is effective for any transactions made between April 1, 2022, and March 31, 2023. The Labor Minister is in charge of the CBT.
What Is The Eligibility For EPF?
The EPF eligibility for employees and employers differs.
EPF Eligibility for Employees
- Every salaried individual with a monthly salary significantly lower than 15,000 INR is required to join the EPF.
- A worker whose monthly salary exceeds INR 15,000 (the current specified limit) is entitled to join the EPF provided he or she receives clearance from the Assistant PF Commissioner plus the employer.
- A worker also has the option to drop out of EPF if his/her income is more than INR 15,000 and he/she has never contributed to EPF. This may be done by filling out Form 11, an EPFO self-declaration form.
EPF Eligibility For Employers
- Any business with 20 or more workers is obligated by law to debit EPF contributions.
- Under certain situations, even businesses with less than 20 workers are eligible.
Types of Forms Required For EPF
The organization offers many PF Forms to accommodate diverse claim procedures and calculate the EPF contribution rate. This list includes some examples of necessary paperwork:
- Form 19: Once members have requested their last distribution from their Personal Retirement Account (PF), they must fill out Form 19.
- Form 10C: Certificate of Eligibility for the Workers’ Pension Fund ’95 Scheme, Form 10C.
- Form 10D: Applications for pensions need must be submitted using Form 10D.
- Form 20: When a person’s legal heir or nominee passes away, Form 20 collects the deceased person’s PF.
- Form 5IF: To get a guaranteed payout under the Workers’ Deposit Linked Financial Services Act of 1976, the participant’s legal heir or nominee must fill out Form 5IF.
- Form 31: To apply for a withdrawal in advance or temporarily under the Workers’ Provident Plan ’52, fill out Form 31.
- Form 13: Transferring PF/pension monies across accounts require a Form 13.
- Form 14: Fill out Form 14 to buy life insurance with money from your PF account.
What Is The Procedure For Logging Into The EPFO Portal?
The EPFO’s member e-Sewa portal makes it simple to access most of its services electronically. These options include accessing and downloading your EPF passbook, making withdrawals or transfers across PF accounts, and more.
The EPFO portal makes it simple to access these features after you’ve registered and logged in. Both employees and employers use the same login site.
If you are an EPFO member, you may access most of EPFO’s services via the e-Sewa site. These options include accessing and downloading your EPF passbook, making withdrawals or transfers across PF accounts, and more.
The EPFO portal makes it simple to access these features after you’ve registered and logged in. EPFO now requires UAN for all users. To access your account, please use the following procedure:
- To access the Member Interface, click on https://unifiedportal-mem.epfindia.gov.in/.
- Please provide your UAN, password, and captcha code.
- To log in, use the “Sign in” button.
What Is The EPF Passbook?
Your UAN or EPF passbook contains important account information like a bank passbook. You may access your EPF passbook on the EPFO member site and quickly download or print a copy. If you want to access or download your EPF passbook, then complete the following:
- Access the EPF site index
- Select the “e-Passbook” option.
- In the new window that has appeared, fill in your UAN, password, and captcha. Then, click “Login.”
- On the next page, you’ll be prompted to enter the member ID (in case of multiple IDs)
- You’ll be able to check the status of your EPF claim and get a copy of your passbook right from this website.
How To Check EPF Balance?
If you have access to or can download the EPFO passbook, you may quickly and conveniently examine your EPFO balance. Here are two more EPFO balance-checking options available if your number is linked to a UAN.
1. Using the EPFO Website
- Step 1: Visit the official EPFO website.
- Step 2: Select the “Our Services” tab and click on “For Employees.”
- Step 3: Choose “Member Passbook” under the “Services” section.
- Step 4: Log in using your Universal Account Number (UAN) and password.
- Step 5: Once logged in, you can view your EPF balance and download the passbook.
2. UMANG App
- Step 1: Download the UMANG app from the Google Play Store or Apple App Store.
- Step 2: Open the app and select the “EPFO” option.
- Step 3: Click on “Employee Centric Services.”
- Step 4: Choose “View Passbook” and enter your UAN and OTP (sent to your registered mobile number).
- Step 5: You can check your balance and transaction details.
3. By Sending an SMS
- Send an SMS to 7738299899 in the following format: EPFOHO UAN ENG (where ENG is for English; you can use HIN for Hindi or any other language code).
- In this case, ENG indicates that the message’s preferred language is English. There are now ten language options for UAN alerts. There are several Indian languages to choose from besides the default English: Hindi, Kannada, Telugu, Tamil, Malayalam, Punjabi, Gujarati, Marathi, and Bengali. For instance, you may switch by entering only the first three letters of the desired language. SMS users may opt for Hindi alerts by writing EPFHO UAN HIN in their message boxes.
- Ensure that your UAN is linked with your Aadhaar, PAN, and bank account.
4. By Giving a Missed Call
- A missed call to 011-22901406 from your registered mobile number will reveal your account balance and other data.
5. Through EPFO App
- Download the EPFO app and follow the steps to check your balance by entering your UAN and mobile number.
How To Withdraw Funds From EPF?
Here’s a step-by-step guide for online and offline withdrawal methods
1. Online EPF Withdrawal via the UAN Portal
- Step 1: Visit the EPFO Member e-SEWA portal.
- Step 2: Log in using your UAN and password.
- Step 3: Go to the “Online Services” tab and click on “Claim (Form-31, 19, 10C & 10D).”
- Step 4: Enter your bank account details (ensure they match the EPFO records).
- Step 5: Verify your identity by entering the last four digits of your bank account number.
- Step 6: Click on “Proceed for Online Claim.”
- Step 7: Under the “I Want to Apply For” section, choose the type of withdrawal (Full EPF settlement, partial withdrawal, or pension withdrawal).
- Step 8: Submit the form after selecting the relevant option and specifying the reason for withdrawal.
- Step 9: Upload the required documents, if needed.
- Step 10: After submission, your claim will be processed, and the amount will be credited to your bank account.
2. Offline EPF Withdrawal
- Step 1: Download the EPF withdrawal form (Form 19, Form 10C, or Form 31) from the EPFO website.
- Step 2: Fill out the form with the necessary details, including your UAN, PAN, and bank account information.
- Step 3: If your Aadhaar is linked to UAN, you can submit the Aadhaar-based composite claim form directly to the regional EPF office without employer attestation.
- If Aadhaar is not linked, submit the Non-Aadhaar composite claim form to your employer for attestation.
- Step 4: Attach a cancelled cheque and any required documents (like medical certificates for illness-related claims).
- Step 5: Submit the form to the regional EPFO office.
- Step 6: Once processed, the funds will be credited to your bank account.
Note: Your Universal Account Number (UAN) must be activated.Your UAN should be linked with your Aadhaar, PAN, and bank account.The mobile number linked with your Aadhaar must be active.
Is Employer Authorization Needed To Access Funds?
One common misconception is that you need the permission of your former employer to withdraw money from your EPF. An employee’s employer has no control over the employee’s EPF account. Each company contributes to your EPF account by withholding a certain amount from your monthly paycheck. After that, your Employees’ Provident Fund (EPF) EPF passbook will be updated to reflect the new total. Once the funds are deposited, you will have full legal title.
How to Recover an Inactive EPF Account?
Following are the Steps to Recover Your Lost EPF Account:
- Visit www.epfindia.com.
- Select the “Inoperative A/C Helpdesk” link. under the heading ‘For Employees’
- As soon as the website loads, look for the words “(a) First Time User Click Here to Proceed” and click there.
- In the following “Problem Description” box, please provide specifics about your issue.
- You will have a new page to fill out with your personal information. Select “Next” after you’ve made the necessary changes.
- The next page will ask for your Know Your Customer details.
- Then, choose the option to “Generate PIN.”
- The PIN will be texted to the cellphone number you provide.
- Please double-check your PIN and hit the submit button.
- After submitting, you will get a text message with your reference ID. Entering this reference number and your mobile phone number will get you access to the Helpdesk portal. The status of your request may be seen after you’ve logged in. An agent in the field will contact you soon to help you move forward.
How To Verify EPF Claim Standing?
When you submit a claim using the member portal, you’ll have easy access to its status update. Please verify the progress of your EPF claim by following these online instructions:
- Login to the EPFO website.
- Access the “For Employees” section by hovering over “Our Services.”
- A claim may be checked by selecting the link labeled “Know your claim status.”
- Just use the following page to input your UAN information.
- When prompted, choose your state and then choose the appropriate EPF office before entering your establishment code and account number on the new page.
- To send your information, please use the “Submit” button.
- Your cell phone associated with your UAN will get an SMS with the claim’s status.
Conclusion
Whilst EPF precludes you from a ‘high’ in-hand wage, its advantages outweigh the so-called disadvantage. It is a low-risk, low-reward investment that should only be utilized in extreme crises.
