Employees’ Provident Fund/EPF: Meaning, Benefits, How To Check & Claim EPF

Employees’ Provident Fund (EPF) is a retirement scheme that an employee obtains from their employer. In this scheme, a fixed amount is deducted from the salary every month, which gets saved in the EPF account. Employee’s Provident Fund helps employees to create wealth, have a regular pension income, and secure their family’s future.

This post tells you how EPF works, how to register for EPF, documents required, eligibility, benefits and how to check and claim EPF balance. Read on!

How Does Employees’ Provident Fund Work?

All employees pay a certain percentage of their salary towards Employees’ Provident Fund. This amount is equally matched by your employer. The combined amount is then deposited into your EPF account, which is managed by the Employees’ Provident Fund Organisation (EPFO). Furthermore, you also accumulate a certain amount of interest every financial year towards your contribution.

For example, you pay Rs. 4,000 every month towards the EPF scheme. Your employer will add another Rs. 4,000 towards this sum. Meaning, a combined amount of Rs. 8,000 is deposited in your EPF account. On this amount, you will get an 8.5% yearly interest. However, the interest rate is subject to change at the EPFO discretion.

Now, the basic deduction towards EPF is 12% of an employee’s salary, which is called employee’s contribution towards EPF. The employer also pays 12% of the employee’s salary towards EPF, known as employer’s contribution to PF.

However, remember that in EPF, the percentage is deducted only from your basic salary, excluding HRA, conveyance allowance, special allowance, or any other benefit.

How Can Employees’ Register for EPF?

If you are an employee, your employer enrols you for EPF at their discretion. After successful registration, EPFO provides a 12-digit UAN (Universal Account Number), which stays the same throughout an employee’s career. 

Furthermore, every time an employee changes his/her job, the EPFO assigns a new Member Identification (Member ID) that is linked with the UAN.

Employees who already have a UAN need to provide the same to the employer when they change their job. This will allow them to mark the Member ID with that number.

On the other hand, if you are a first-time employee, you will have to get your UAN from your employer or by yourself. 

Here are the steps through which employers can generate UAN of 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.

Also Read: Difference Between EPF And EPS

How Can Employers Register for EPF?

Mentioned below are the Employee Provident Fund registration steps for employers:

• Step 1: Visit the EPFO website and click on ‘Establishment Registration’.
• Step 2: You will be redirected to the USSP (Unified Shram Suvidha Portal) page. Here, click on ‘Sign Up’.
• Step 3: Enter your name, email ID, and mobile number to receive a verification code. Enter the code.
• 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 get two options here – 

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 regarding branch division, employment details, establishment details and more.
• Step 8: To conclude the process, add your digital signature.

The USSP will email you upon confirmation.

Essential Documents for EPF Registration

Both employees and employers must produce a few documents to complete the PF registration process. Find them below:

For employees

• Bank account details (account number, branch name, IFS code).
• Aadhaar number
• PAN
• Address proof

For employers

• A copy of the partnership deed (for partnership firms)
• Certificate of Corporation (for public and private ltd companies)
• Memorandum of Association (for public and private ltd companies)
• Articles of Association (for public and private ltd companies)
• Registration certificate of society (for societies)
• Copy of objectives and rules of the society 
• PAN
• First sales invoice
• Partition details
• Balance sheet copy
• Employees’ salary details

Also Read: How To Link PAN With An EPF Account

Employees’ Provident Fund Eligibility

Registration for Employees’ Provident Fund is compulsory for the following establishments:

• Factories engaged in the industry with a workforce of 20 employees or more
• Other establishments with more than 20 employees

Organisations featuring fewer than 20 employees can also register with EPFO for employees. However, that would count as voluntary registration.

Moreover, an employer must register for EPF within a month of employing more than 20 employers. Failure to do so could result in heavy penalties. 

Benefits of Employees’ Provident Fund

Your contributions towards EPF bring along a host of benefits:

• Builds a sufficient retirement corpus
• You can use the fund during a financial emergency through partial withdrawal.
• You can also use the fund in case of unemployment. After one month of employment, you are eligible to withdraw 75% of the corpus and the rest 25% after two months.
• The accumulated amount gets transferred to the nominee in case of the employee’s death.

How to Check Employees’ Provident Fund Balance?

Employees can check their EPF balance in the following ways:

Via Umang App

• Step 1: Download the Umang app on your mobile device.
• Step 2: Go to the EPFO option, where you start an application.
• Step 3: Click on ‘Employee Centric Services’.
• Step 4: Click on ‘View Passbook’.
• Step 5: You will have to enter an OTP on your mobile number. Enter that.

Doing so will unlock your passbook, and you can view your EPF balance.

Via EPFO Portal

• 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 to access your passbook, your UAN must be verified and activated by your employer.

How to Claim Dormant Employees’ Provident Fund Balance?

If you do not withdraw the PF balance from your account within 3 years of the last contribution, your EPF account becomes dormant. 

Follow these steps if you have an unclaimed amount and want to liquidate it:

• 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’.

A field officer will verify your application, and the EPFO will send you further details regarding your request.

Final Word

Employees’ Provident Fund is an excellent savings option for salaried employees. Knowing the benefits and features of an EPF account will help you understand your finances better. It can also be a saviour during an emergency situation. Check your EPF balance every year and withdraw the amount every three years to keep your EPF account active. 

FAQs on Employee Provident Fund

1. Can I withdraw PF while working?
   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.
2. What are the restrictions on EPF withdrawal?
   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. 
3. Can an employee opt out of EPF and get a full salary?
   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.  
4. At what age can an employee become a member of EPF?
   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.
5. How to withdraw the previous company’s PF after joining some other company?
   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.

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