Employees’ Provident Fund (EPF) is a retirement scheme that is available to all employees working in India, subject to certain conditions. In this scheme, an employer deducts a fixed percentage of an employee’s salary, matches it with their own, and then contributes both components to an EPF account created for the employee. It is managed under the provisions of the Employee’s Provident Fund and Miscellaneous Provisions Act 1952 and falls under the aegis of the Central Board of Trustees (CBT). EPF contribution allows salaried employees to earn interest on their contributions. As per the latest amendments, the current EPF interest rate stands at 8.15% for FY 2022 – 2023.
In this blog, we will see how EPFO works, the schemes available, the employee pf online withdrawal process, and more.
Unless exempt, a business organisation must deduct a certain percentage of their employees’ basic salary for the Employees’ Provident Fund (EPF). The employer must also match this amount. The combined amount is then deposited into the EPF account. The EPF deposits will also earn you interest at a rate decided by the government.
For example, if an employer deducts ₹4,000 per month from your salary for EPF, they must also match it. So, the total contribution to your EPF account every month will be ₹(4,000+4,000)=₹8,000, which will earn you interest at the rate 8.15% p.a. (current rate).
Please note: To calculate your EPF contribution, your employer cannot consider salary components, such as HRA, conveyance allowance, and special allowances among others.
The CBT currently operates and offers three schemes under its aegis. They are:
Under the current rules of the Employee’s Provident Fund and Miscellaneous Provisions Act 1952, the break-up of the contributions by employers and employees to each scheme is as follows:
The EPF interest rate for FY 2022-2023 is 8.15% p.a.
The interest rate for EPF accounts is decided annually by the Employees Provident Fund Organisation of India. Once it declares the rate for a particular financial year, the interest rate is calculated on the closing balance for each month and then on the total balance for the year.
As per Finance Act 2021, the interest earned on EPF deposits is taxed at the following rates:
While the Employees’ Provident Fund Organisation (EPFO) decides the rate applicable on your PF account for the entire year, interest is calculated on your month-wise PF balance. For example, if the rate of interest on Employees’ Provident Fund (EPF) for the year is 8.15% p.a., then the interest applicable per month will be 8.15%÷12=0.68% (approximately).
Now, a maximum of 12% of an employee’s salary can be contributed to their EPF account. Let’s assume the employee’s basic salary is ₹20,000 per month. Now, 12% of ₹20,000 is ₹2,400. Now, the employer contributes 3.67% of the basic salary of the employee, from their end, to the employee’s EPF account. 3.67% of ₹20,000 is ₹734. So, the total contribution to the employee’s EPF for the month is ₹(2,400+734)=₹3,134. Therefore, the interest earned on the EPF deposit for the month will be ₹21.3112. So, the total earnings for the month will be ₹3,155.3112.
However, please note that the interest accrued on the balance at the end of each month is deposited in the account only at the end of each financial year.
If you want to avoid the hassle of manual calculation, you can also use the extremely intuitive, practical, and easy-to-use Navi EPF Calculator. With it, you can calculate your maturity amount, total investment tenure, and total contribution to your EPF account. To get an estimate, you have to enter the following parameters in this EPF calculator:
The calculator will automatically input the current EPF rate of interest before it shows you the results within seconds. Isn’t it cool?
Monthly Salary (Basic + DA)
Your contribution to EPF
Average annual Increment
Current Rate of Interest
Based on the exact need, such as withdrawal of Employees’ Provident Fund, an employee may have to use a variety of EPF forms. The following table highlights the name and use of each such form:
|Form Name||Purpose||Download Link|
|Form 15G||To save TDS on interest income from EPF||⬇|
|Form 19||Final settlement of an employee’s PF deposit||⬇|
|Form 2||Nomination and declaration for EPF and EPS||⬇|
|Form 11||For self-declaration of employee details||⬇|
|Form 31||For partial withdrawal of EPF savings||⬇|
|Form 5||When a new employee wants to join EPF and EPS||⬇|
|Form 5 (IF)||To claim EDLI deposits made under the EDLI scheme||⬇|
|Form 10C||To claim withdrawal benefits||⬇|
|Form 13||To transfer your EPF deposits from an old account to a new one||⬇|
|Form 10D||To start a monthly pension||⬇|
|Form 14||To buy an LIC policy with EPF deposits||⬇|
|Form 20||For final settlement in the unfortunate event of demise of an employee||⬇|
Step 1: Login to your EPF account
Step 2: Go to the ‘Online Services’ section and choose the ‘One Member – One EPF Account (Transfer Request)’ option
Step 3: Verify your personal details
Step 4: Now, click on ‘Get Details’ to obtain the particulars of your old EPF account
Step 5: You can choose either your old or present employer to attest your claim form. In the highlighted space, enter your Universal Account Number (UAN) and member ID.
Step 6: Click on the ‘Get OTP’ option to get an OTP on your registered mobile number. Enter it in the relevant field to validate your identity.
Step 7: A PF request form with the details entered by you will be generated online. You can submit it to the employer you have selected in the pdf format, after self attesting it. The said employer will also receive an online notification pertaining to the transfer request.
Step 8: The employer will now have to approve your request digitally. Once approved, the money will be transferred to your new Employees’ Provident Fund (EPF) account. A tracking ID will also be generated, which you can use to track the status of the transfer.
Step 1: Visit the EPFO portal and login using your UAN and password
Step 2: Under the ‘Online Services’ section, click ‘One Member – One EPF Account (Transfer Request)’
Step 3: A new tab will open. Enter the details of your new EPF account number. To find this number, check the salary slip or the PF statement issued by your new employer
Step 4: You could either get your claim form attested by your present employer or your old employer.
Step 5: Now, enter the previous EPF account number (provided the UAN of your old and new accounts is the same) or enter the UAN of your old account. Once you click on ‘Get Details’, the details of your old account will be shown. Click the account from where the money has to be withdrawn/transferred.
Step 6: Click on ‘Get OTP’ now. A one-time password will be sent to your Aadhaar-registered mobile number. Once you enter it in the space provided, your transfer request will be registered successfully. A tracking ID will also be generated. Note down that number and download the form submitted in the pdf format. You may now have to submit it to your new employer, who will also receive an online notification about the submission.
Withdrawing money using your UAN from your Employees’ Provident Fund Organisation account is possible both online and offline.
You also have the option to withdraw EPF funds through the offline mode. All you have to do is fill out the Composite Claim Form and submit it to your jurisdictional EPFO office.
Please note that there are two types of Composite Claim Forms – one is Aadhaar-based and the other is not linked to Aadhaar. If you choose to proceed with a non-aadhaar composite form, ensure that the form is attested by your employer.
The primary benefits of EPF are as follows:
EPF forces you to save and create a sizeable corpus for your post-retirement life. Given that 8.33% of your total EPF contribution goes into EPS, you can build a sufficient corpus to financially secure your future after retirement.
EPF funds can be withdrawn partially to meet emergencies or an important big-ticket purchase. Some of the valid reasons you can use your EPF funds are to buy or build a house, pay for medical expenses, or meet your higher education expenses among others.
In case of unemployment, you have the option to withdraw your EPF savings. The current provisions mandate that you can withdraw up to 75% of the corpus after one month of unemployment and up to 25% if you remain unemployed after two months.
In the unfortunate event of your demise, your nominee can claim your entire EPF savings. Therefore, it could act as a financial lifeline for your family in your absence.
Under Section 80C of the Income Tax Act, contributions to your EPF are tax-exempt up to a limit of ₹1.5 Lakh per annum.
A member may be able to withdraw his EPF savings partially or fully, based on certain conditions as follows:
Step 1: Visit the EPF i Grievance Management System
Step 2: Choose the relevant ‘Status’ option
Step 3: Enter your UAN number, the captcha displayed on the screen, and finally click on the ‘Get Details’ button
Step 4: Now, click on the ‘Get OTP’ button after your UAN details are displayed
Step 5: Enter the OTP in the highlighted space and click on ‘Submit’. On successful OTP verification, you will get a pop-up message. Click on ‘Ok’ to proceed
Step 6: You will be prompted to enter personal details, such as name, state, pin code, country, and gender among others
Step 7: Click on the PF Account number shown in the “grievance details” column
Step 8: Now, select the complaint type and enter the relevant description. You will also have the option to upload supporting documents. Click on “Add” after entering the complaint and uploading the supporting documents
Step 9: Now, you will be able to see your complaint in the “Grievance Details” section. Click on “Submit” to formally register your grievance
Step 10: Once your complaint is registered, you will receive an email and SMS confirmation pertaining to the same
The following services are offered by the Employees’ Provident Fund Organisation:
EPFO maintains a helpdesk to help employees or former employees track dormant or inoperative accounts. A member has the option to withdraw the funds from such an account or transfer it to an active EPF account.
A member has the option to withdraw funds from their account using the EPFO portal, provided they have access to their UAN number.
EPF mandates that all organisations must deposit funds online. Currently, the EPFO has an agreement with 10 Indian banks for collection of funds.
EPFO has an extremely active grievance redressal mechanism. Members can lodge complaints and get quick resolutions.
EPFO has introduced the UMANG app to improve the mobile experience of all members. Members can use the app to avail of services, such as viewing their EPF passbook, and updating their profiles among others.
If a member has activated their UAN and registered their mobile number, they can send an SMS to 7738299899 or give a missed call to 01122901406 to check their PF balance, status of KYC, previous contributions, etc.
Organisations under the exempted category can use an online EPFO tool to file their monthly returns online
Once an employee is registered with EPFO, a unique 12-digit UAN (Universal Account Number) is generated, which stays the same throughout the employee’s professional career. Furthermore, every time an employee changes their job, the EPFO assigns a new Member Identification (Member ID) that is linked with the UAN.
Here are the steps through which employers can generate UAN for their employees:
Step 1: Visit the EPF Organisation website and log in with the establishment ID and password.
Step 2: Locate the ‘Member’ tab and click on ‘Register Individual.
Step 3: Fill in employee details in the member registration form.
Step 4: After that, fill in the KYC details, such as the Aadhaar number, PAN, and bank details.
Step 5: Click on ‘Save’.
After following these steps, the employer will receive the UAN of particular employees.
Step 1: Visit the EPFO website and click on ‘Establishment Registration’.
Step 2: You will be redirected to the Unified Shram Suvidha Portal (USSP) page. Click on ‘Sign Up’.
Step 3: Once you click on ‘sign up’, you will be asked to enter your name, email ID, and mobile number. Once you add the mobile number, you will receive a verification code. Enter the code in the relevant field.
Step 4: After that, log in to the USSP and locate the ‘Registration For EPFO-ESIC v1.1’ option.
Step 5: Choose the ‘Apply for New Registration’ option. You will be shown two options –
1. Employees’ Provident Fund and Miscellaneous Provision Act 1952
2. Employees’ State Insurance Act 1948
Step 6: Click on ‘Employees’ Provident Fund and Miscellaneous Provision Act 1952’ and then Submit.
Step 7: In the registration form for EPFO, enter details, such as branch division, employment details, establishment details, and more.
Step 8: To conclude the process, add your digital signature.
Once your request has been registered, you will receive an email from USSP.
Both employees and employers must produce a few documents to complete the PF registration process. Find them below:
Employees can check their EPF balance in the following ways:
Step 1: Download the Umang app on your mobile device.
Step 2: Go to the EPFO option to start an application.
Step 3: Click on ‘Employee Centric Services.’
Step 4: Click on ‘View Passbook’.
Step 5: You will receive an OTP. Enter it in the highlighted space.
Step 6: You will be shown your EPF balance.
Step 1: Visit the EPFO portal and locate ‘For Employees’ under ‘Our Services’.
Step 2: Under ‘Services’, click on ‘Member Passbook’.
Step 3: Enter your UAN and password to view your EPF balance.
Note that in order to access your passbook, your UAN must be verified and activated by your employer.
A dormant EPF account is one that hasn’t received a contribution within 3 years of the last contribution. If the total deposit in a dormant account is not claimed within 7 years from the time the account is earmarked as ‘dormant’, the money will be deposited to the ‘Senior Citizen Welfare’ Fund, managed by EPFO.
Step 1: Visit the EPFO website and click on ‘Inoperative A/c Helpdesk’ under the ‘For Employees’ section.
Step 2: Click on ‘First Time User Click Here to Proceed’ and describe the reason for your inoperative account in the ‘Problem Description’ box.
Step 3: After that, enter your UAN, company name, and other details on the next page.
Step 4: On the following page, enter your KYC details.
Step 5: After that, click on ‘Generate PIN’.
Step 6: Enter the PIN you received on your mobile number and click on ‘Submit’.
Step 7: Once you have submitted your request, you will receive an SMS that contains a reference ID. You will also receive an acknowledgement pop-up message on your computer screen.
Step 8: To check the status of your request, login to the helpdesk portal by entering your registered mobile number and reference ID.
Step 9: The request will be transferred to a field officer, who will guide you on the next course of action.
Employees’ Provident Fund (EPF) could be a great way to build a substantial corpus for your post-retirement life. Make sure to keep your UAN active and link it with all your old and new member IDs to ensure that no account becomes dormant or inoperative. Follow the steps mentioned above to transfer money from an old account to a new one, in case you change jobs. You also have the option to withdraw funds fully or partially to take care of large expenses.
However, let us tell you that premature withdrawal of EPF funds means a reduced retirement corpus. To meet a short-term financial crisis, a better alternative could be a short-term personal loan. Like Navi Instant Cash Loan, with which you can get up to ₹20 Lakh, at attractive interest rates, starting at just 9.9% p.a. You also have the option to choose a flexible tenure of up to 72 months. What’s more, we charge no foreclosure charges. Don’t believe us? Download the Navi App today and try it for yourself!
Yes, the EPFO allows employees to withdraw some amount from their EPF balance while employed. Withdrawals of such nature are called advances and can be taken against only in specific situations, such as when purchasing a house, for child’s education and medical needs of spouse or child.
Only partial withdrawal is allowed, that too, only during emergency situations. Moreover, EPFO allows withdrawal of 90% of the sum before 1 year of retirement, provided that the person is aged over 54 years.
Yes, you can opt-out of EPF only if your salary (basic + DA + allowances) is more than Rs. 15,000 per month. However, you will have to take this decision as a first-time employee when you still do not have an EPF account.
An employee can become a member of EPF as soon as he/she joins an organisation. There is no lower age limit. The organisation takes the initiative to enrol their employees under this scheme if their monthly salary (basic + DA) is less than Rs. 15,000. However, employees drawing more than Rs. 15,000 monthly can also choose to be a member of EPF.
If you have changed jobs, your employer adds a new Member ID to your UAN. You can easily transfer the balance of your old account to the new account through the UAN Member e-Seva Portal. If your employer has opened a separate UAN, you can either withdraw your balance or transfer it to your new UAN. Note that you can conduct this process only after two months of leaving your job.
You have to keep your Universal Account Number (UAN) active to track the balance of your EPF Account. You will also need it to login to the EPFO member’s portal.
To check your PF account details, login to the EPFO member’s portal with your UAN and password. You can also send an SMS to 7738299899 or give a missed call to 01122901406.
To check your PF status on mobile, send an SMS to 7738299899 or give a missed call to 01122901406. However, please make sure that your UAN is active and your mobile number is registered with EPFO.
If you are a registered member of EPF with an active UAN, you can view or download your EPF passbook or statement from the EPF member’s portal. To download the statement, enter your name, the name of your employer, and your PF account number (usually mentioned on the payslip provided by an organisation)
To check your PF balance, simply send an SMS to 773829989 and you will receive an SMS with the relevant details.
It is the employee PF number or ID which you can use to check the status and balance of your PF account.
No, if your organisation is not exempt from the Employee’s Provident Fund and Miscellaneous Provisions Act 1952, you have to mandatorily make contributions to your PF account till the time you are employed.
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