What is Employee Provident Fund Scheme
Updated on : Feb. 27, 2023 - 5 p.m. 17 min read.
Contribution to Employee Provident Fund (EPF) is an essential component of the Indian workforce, but it's often misunderstood. As an employee, it's crucial to understand how EPF works and the benefits it offers. The EPF scheme was introduced by the Indian government to help employees save money for their retirement. However, there are many other benefits of EPF, such as providing financial security during emergencies and helping employees access loans at lower interest rates. Understanding EPF can be overwhelming, but fear not! In this ultimate guide, we will break down all the essential information you need to know about EPF, including how it works, how to check your EPF balance, how to withdraw EPF, and much more. By the end of this guide, you'll have a clear understanding of EPF and how it can benefit you as an employee. So, let's dive in!
EPFO stands for the Employees' Provident Fund Organisation, which is a statutory body under the Ministry of Labour and Employment, Government of India. It is responsible for administering the Employees' Provident Fund (EPF) scheme, which is a mandatory savings scheme for all employees earning up to Rs 15,000 per month in organizations employing 20 or more employees.
The EPFO was established in 1952 to provide social security to the employees and to ensure that they have a savings corpus for their retirement. The EPFO manages the contributions made by both the employer and the employee towards the EPF, as well as the Employees' Pension Scheme (EPS) and the Employees' Deposit Linked Insurance Scheme (EDLI).
Services Provided by EPFO
The EPFO provides various services to employees, such as:
- Online registration of new members and employers
- Online transfer of funds from one EPF account to another
- Online submission of claims for withdrawal or transfer of funds
- Online updating of KYC details, such as Aadhaar, PAN, and bank account number
- Online access to the EPF passbook and statement
The EPFO also manages the EPF account of all employees and provides interest on the accumulated amount, which is determined by the government every year. The EPFO is responsible for ensuring that the EPF contributions are credited correctly and that the employees receive the benefits of the scheme on time.
The Employees' Provident Fund (EPF) is a retirement benefit scheme in India that is administered by the Employees' Provident Fund Organisation (EPFO). It is a mandatory scheme for all employees who earn a salary of up to Rs 15,000 per month in organizations employing 20 or more employees.
Under this scheme, both the employer and employee contribute 12% of the employee's basic salary, dearness allowance (DA), and retaining allowance (if any) into the employee's EPF account. The contributions are made monthly, and the employee can withdraw the accumulated amount after attaining the age of 58 or after retirement, whichever is earlier.
Benefits of EPFO
The EPF scheme provides various benefits to the employees, including:
- Savings for retirement: The EPF scheme allows employees to save a portion of their salary every month, which can be used as a retirement corpus.
- Tax benefits: Contributions made by both the employer and employee to the EPF are eligible for tax deductions under Section 80C of the Income Tax Act.
- Insurance cover: The scheme provides a life insurance cover to the employees.
- Pension benefits: After retirement, the employees are eligible for a monthly pension under the Employees' Pension Scheme (EPS).
The EPFO also provides various services, such as online registration, online transfer of funds, and online claims settlement, to make the process easier for employees.
Employees Provident Fund Login
To log in to your EPF account online, you can follow these steps:
- Visit the official EPFO website at https://www.epfindia.gov.in/
- Click on the "For Employees" option on the home page.
- Select the "Member UAN/Online Services" option from the drop-down menu.
- You will be redirected to the EPF Member Portal.
- Enter your Universal Account Number (UAN), password, and captcha code in the relevant fields.
- Click on the "Sign In" button.
Once you have logged in, you can access various services, such as checking your EPF balance, downloading your passbook, updating your KYC details, and submitting a claim for withdrawal or transfer of funds. It is important to keep your UAN and password secure and to regularly check your EPF account to ensure that all contributions have been credited correctly.
Employees Provident Fund Transfer
If you have changed your job and want to transfer your Employees' Provident Fund (EPF) from your previous employer to your current employer, you can follow these steps:
- Log in to the EPFO Member Portal using your Universal Account Number (UAN) and password.
- Click on the "Online Services" tab and select "One Member – One EPF Account (Transfer Request)" from the drop-down menu.
- Verify your personal details, such as name, date of birth, and mobile number.
- Select your previous employer and the relevant EPF account that you want to transfer.
- Select your current employer and provide the details of your current EPF account.
- Submit the transfer request online.
- Once the transfer request is approved by your previous employer, the EPFO will transfer the funds from your previous EPF account to your current EPF account.
It is important to note that you can only transfer your EPF account online if your Aadhaar, PAN, and bank account details are updated in your EPF account. If any of these details are not updated, you will have to get them updated first before you can submit a transfer request online. Additionally, you can only transfer your EPF account if you have linked your UAN with your current employer.
Employees Provident Fund Grievances
If you have any grievances related to your Employees' Provident Fund (EPF), you can file a complaint with the Employees' Provident Fund Organisation (EPFO) using the following steps:
- Visit the EPFO's online grievance management portal at https://epfigms.gov.in/ and register a complaint.
- Fill in the details of your complaint, such as your name, contact details, EPF account number, and a brief description of the grievance.
- Upload any relevant documents, such as your payslip or EPF passbook, to support your complaint.
- Submit your complaint online.
- Once your complaint is registered, you will receive a complaint registration number.
- You can use the complaint registration number to track the status of your complaint online.
Alternatively, you can also file a complaint with the EPFO by calling their toll-free helpline number at 1800 118 005. You will be required to provide your EPF account number and other relevant details to register your complaint over the phone.
The EPFO takes all complaints seriously and tries to resolve them as soon as possible. You can expect a response from the EPFO within a few days of registering your complaint. If you are not satisfied with the response, you can file an appeal with the EPFO's Appellate Authority.