provident fund
EPF India: Eligibility, Interest Rates, Contribution &
EPF Eligibility, Interest Rates, Contribution & Payment in India
List of Home Savings Plans: Their Types, Interest Rates, and Terms EPF Eligibility, Interest Rates, Contribution & Payment in India
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14-09-2021 06:56:05 A.M.
The Employee Provident Fund (EPF) is a pension plan administered by the Employees' Provident Fund Organization (EPFO). Employees and employers both contribute 12 percent of their basic salary and dearness allowance to the EPF scheme on a monthly basis. 8.33 percent of the employer contribution is allocated to the Employee Pension Scheme.
Continue reading to learn about the EPF scheme, interest rate, eligibility, contribution, withdrawal, and online management of your EPF account.
Are you aware?
From June 1, 2021, it will be mandatory to link your Aadhaar number to your EPF account. Otherwise, your account will not be credited with the employer's contribution. To learn how to link your Aadhaar number to your EPF account, click here.
Interest Rates on EPF Funds for Fiscal Years 2021-22
Annually, the interest rate on EPF is reviewed. For FY 2021-22, the EPF's interest rate is 8.50 percent. Once EPFO publishes the interest rate for a fiscal year and the fiscal year ends, the interest rate is calculated for each month's closing balance and then for the entire fiscal year.
The year in which new interest rates are announced remains valid for the following fiscal year, that is, from the fiscal year beginning on 1st April to the fiscal year ending on 31st March the following year. The following are some critical facts about the EPF Interest Rate:
- The interest rate of 8.50 percent is valid and will apply to EPF deposits made between April 2021 and March 2022.
- Despite the fact that interest is calculated monthly, it is transferred to the Employees' Provident Fund account only once a year on March 31st of the applicable fiscal year.
- The transferred interest is added to the following month's balance, i.e. April's balance, and is then used to calculate interest.
- If no contribution is made to an EPF account for a continuous period of thirty-six months, the account becomes dormant or inoperative.
- Interest is paid on inactive accounts maintained by employees who have not reached retirement age.
- Interest is not paid on funds deposited in retired employees' inactive accounts.
- Interest earned on dormant accounts is subject to tax at the member's slab rate.
- The employee shall not receive interest on employer contributions to the Employees' Pension Scheme. However, after the age of 58, a pension is paid from this amount.
Calculation of the EPF Interest Rate
Assume an employee began contributing in November 2020.
Contribution Commencement Month
2020 November
Rate of Interest (p.a)
8.5 %
Interest Rates Monthly
8.50/12 = 0.7083%
Contribution of Employees
12% of Rs. 15,000 equals Rs. 1,800
Contribution of the Employer
1,800 rupees (8.33 percent in Pension, 3.67 percent in EPF)
Actual Employer Contribution to the EPF Account
3.67 percent of 15,000 rupees equals 550 rupees.
Monthly Contribution Amount in EPF Account
1800 + 550 = 2,350
The following month's (December) balance will be calculated in the following manner:
- Carryover balance from November 2021 equals Rs. 2,350.
- Interest earned in December 2021 equals Rs. 16.75
- End-of-December 2019 balance = Rs. 2,350 + Rs. 2,350 = Rs. 4,700
Although interest was earned in December 2020, it will be credited to the account at the end of the fiscal year on March 31, 2021.
Contribution to the EPF
Employers and employees contribute equally to the EPF account, as shown below.
Contribution of the
Monthly Contribution Percentage
Employer
12%
Employee
12% or 10%
Total
24%
Important Points to Remember About EPF Contribution:
Employer contribution of 12% includes 3.67 percent EPF and 8.33 percent EPS.
- A 10% EPF contribution is applicable to businesses with fewer than 20 employees, businesses with losses greater than or equal to their net worth (at the end of the fiscal year), and businesses declared sick by the Board for Industrial and Financial Reconstruction.
- The employer contributes a total of 8.33 percent to the Employees' Pension Scheme and 3.67 percent to the Employees' Provident Fund.
- The employee's contribution is entirely devoted to the employee's provident fund.
- In addition to the above-mentioned contributions, the employer is required to pay an additional 0.5 percent toward EDLI.
- The employer must also bear certain administration costs associated with EDLI and EPF, which are currently 1.1 percent and 0.01 percent, respectively. This means that the employer is required to contribute a total of 13.61 percent of the employee's salary to the plan.
Contribution of Employees to the EPF
In general, the employee's contribution rate is set at 12%. However, the rate is fixed at 10% for the organisations listed below:
- Organizations or businesses with a maximum of 19 employees.
- Industries designated as sick by the BIFR
- Organizations incur annual losses that are significantly greater than their net value.
- Industries producing coir, guar gum, beedi, bricks, and jute.
- Organizations with a wage ceiling of Rs. 6,500.
Contribution of the Employer to the EPF
The employer's minimum contribution is set at 12 percent of Rs. 15,000 (although they can voluntarily contribute more). This amount equates to approximately Rs. 1,800 per month. This means that both the employer and employee are required to contribute Rs. 1,800 per month to the scheme. Initially, this amount was set at 12 percent of Rs. 6,500, which equated to Rs. 780 in employer and employee contributions.
- Both parties contribute to the EPFO (Employees Provident Fund Organisation)
- This is a long-term investment vehicle for contributors that enables them to maintain an independent lifestyle following retirement.
Eligibility Criteria for the EPF
- Employees must join the scheme as an active member in order to receive benefits under the scheme.
- Employees of an organisation are immediately eligible to receive Provident Fund, insurance, and pension benefits upon their employment.
- Any organisation with a minimum of 20 employees is required to provide EPF benefits to its employees.
- This scheme is insufficient to meet the needs of residents of Jammu and Kashmir.
How do employers become EPF members?
To register for the EPF, follow the steps outlined below:
- Visit the website of the Employee Provident Fund Organisation (EPFO).
- Navigate to the 'Establishment Registration' section, which opens a new page with the 'Instruction Manual'. It will detail the process of Employer Registration, followed by the registration of the Employer's DSC [Digital Signature Certificate], which is required prior to submitting a new application.
- Acknowledge the statement 'I have read the instruction manual' To proceed, check the box and enter your information to register.
- An email with an activation link is sent, as well as a mobile PIN. To register, you must upload certain documents.
- Those who have previously registered may access their account by entering their Universal Account Number (UAN)
How do EPF members (employees) access their EPF accounts?
You must first visit the EPF member website, i.e. EPF e-SEWA/EPF Members Portal, and then select the option to login using your UAN on the right side. UAN, on the other hand, must have been activated previously.
What exactly is UAN?
The Universal Account Number (UAN) is a 12-digit number assigned to each employee by the Employees' Provided Fund Organization (EPFO) for the purpose of managing his or her PF accounts. It enables the individual to access all Provided Fund (PF) information in one location, regardless of the organisation for which he works. The employee can easily withdraw and transfer funds using the UAN.
Activation of the EPF UAN
To activate your UAN, simply follow the steps outlined below:
Step 1: Navigate to the EPF's member website, i.e. the EPF e-SEWA/EPF Members Portal.
Step 2: In the right-hand corner, locate the option 'Activate UAN' and click on it.
Step 3: When the new dashboard appears, enter your UAN, PAN, or Aadhar number, as well as other EPFO-recorded information such as your name, birthdate, and so on.
Step 4: Enter the 'captcha' code and receive an authorization PIN on the mobile device you registered with EPFO.
Step 5: Activate and validate the UAN online using the One Time Password (OTP).
Step 6: A second message will be sent to confirm the UAN's activation.
Step 7: After activating your UAN, you can use it to check the Provident Fund's status.
Update to the EPF's Know Your Customer Policy
Step 1: Log in to the EPF Members Portal using your UAN and password.
Step 2: When the new page loads, click on KYC from the dropdown menu under the 'Manage' section.
Step 3: Update information such as the name and number of your PAN, Aadhar, and bank documents.
Step 4: Save it; it will show as Pending KYC until the other end verifies it.
How do I determine my EPF balance?
A member can check his or her EPF balance online by following these simple steps:
Step 1: Navigate to the EPF's website, which is located at www.epfindia.gov.in.
Step 2: Navigate to the 'For Members' section of the "Our Services" menu.
Step 3: Select 'Member Passbook' from the drop-down menu.
Step 4: Now, enter your EPF account's 'UAN', password, and captcha code.
To view your passbook, select the 'Member ID' option.
Step 6: The document will display your passbook in its entirety.
Step 7: The member may also check his EPF balance by texting EPFOHO UAN> ENG to '7738299899'.
You can also check your EPF balance by dialling 011-22901406 and leaving a missed call.
EPF Application Forms
Different EPF forms are required for each activity that employees wish to conduct with their accounts; these activities include registration, withdrawal, transfer of PF, borrowing from an existing EPF account, and any other purpose.
EPF Application
Utilization of the EPF Form
Download
31st Form
Withdrawal from the EPF
⇩
14th Form
Purchasing a life insurance policy
⇩
10D-Form
In order to obtain a monthly pension
⇩
10C Form
For the purpose of claiming EPS withdrawal benefits/scheme certification
⇩
11th Form
Transfer of EPF Account
⇩
Formulary 19
Final Settlement of Employees' Provident Funds
⇩
Form twenty-one
EPF Final settlement in the event of an employee's death
⇩
Type 2
Form of declaration and nomination for EPF and EPS
⇩
Form 5 IN THE EVENT
Claim in accordance with the EDLI scheme
⇩
15G Form
To avoid paying TDS on interest earned on EPF
⇩
5e forme
New employees enrolling in the EPF and EPS
⇩
11th Form
Automatic EPF transfer
⇩
Withdrawal from the EPF
EPF benefits may be withdrawn in whole or in part. When an individual retires or is unemployed for more than two months, he or she may make a complete withdrawal. Whereas, in certain circumstances, partial EPF withdrawal is permitted. You can make an EPF withdrawal claim online by completing the EPF withdrawal form. However, the online withdrawal claim facility is available only if your Aadhaar number is linked to your UAN.
To complete the EPF withdrawal form and initiate an online claim, follow the steps below:
-
Step 1– Log in using your UAN and password to the UAN Member Portal.
Step 2- From the top menu bar, click on the 'Online Services' tab and then on the drop-down menu next to 'Claim (Form-31, 19 & 10C).
Step 3– The screen will display the member's information. Enter your bank account's last four digits and click 'Verify'.
Step 4– Select 'Yes' to sign the undertaking certificate and continue.
Step 5– At this point, click the 'Proceed with Online Claim' option.
Step 6– To withdraw funds online, select 'PF Advance (Form 31).'
Step 7 – A new section of the form will open, prompting you to enter the 'Purpose for which the advance is required,' the required amount, and the employee's address.
It's worth noting that all options that are not withdrawable will be highlighted in red.
Step 8 – Ensure that the certification is checked and submit your application.
Step 9 – Depending on the purpose for which you filled out the form, you may be required to submit scanned documents.
Step 10 – Once your employer approves your withdrawal request, the funds will be transferred from your EPF account and deposited in the bank account specified on the withdrawal form.
An SMS notification will be sent to the mobile number associated with your EPFO account. After processing the claim, the funds will be transferred to your bank account. Although the EPFO has not specified a time frame, funds are typically credited within 15-20 days.
Withdrawal of the EPF: A News Update (1st June 2021)
EPFO permits members to withdraw funds from their EPF accounts twice in order to meet COVID-19 emergency requirements.
The labour ministry announced that EPF members can now make two withdrawals from their EPF account to cover emergency expenses incurred as a result of the Coronavirus pandemic. Members may take a non-refundable withdrawal of up to 75% of the balance in their EPF account or three months' salary and dearness allowance, whichever is less. Additionally, EPFO has committed to settling these withdrawal claims within three days and has established an auto-claim settlement process for members who have completed their KYC in all respects.
How to Make an Online EPF Transfer?
Step 1: Log in using your UAN and password to the EPFO members' portal.
Step 2: On the home page's main menu, select 'Online Services' and then 'Transfer Request' to generate an online transfer request.
Step 3: A new dashboard will appear, displaying all of your personal information. Verify all of the above, including your DOB, EPF number, and date of joining, in order to claim the process.
Step 4: Once verified, return to Step 1, select previous or current employer, and then enter the information for the previous employer from whom you wish to claim.
Step 5: Submit your information; an OTP will be sent to the mobile number associated with your account. After verifying your identity with the OTP, the request will be submitted and an online filled-in form generated. You must sign and return the form to your current or previous employer.
Employers will also receive an online notification regarding the EPF transfer request. The EPFO Office will process your claim only after your employer electronically transmits it to the EPFO following verification of your employment details.
After submitting your request, you can track the status of your EPF transfer claim by selecting the 'Track Claim Status' menu item from the 'Online Services' menu.
How to online link your EPF account to Aadhaar?
Online, you can easily link your Aadhaar number to your EPF account. Adhere to the steps outlined below:
Step 1: Log in to the EPFO member portal using your credentials.
Step 2: From the menu bar, select the 'Manage' option.
Step 3: Select the 'KYC' option from the drop-down list.
Step 4: From the list of documents, select 'Aadhaar'.
Step 5: Enter your Aadhaar Number and Name exactly as they appear on your Aadhaar card.
Step 6: Save and continue
Step 7: Your Aadhaar data will be compared to that of UIDAI.
Your Aadhaar will be linked to your EPF account upon successful approval, and you will see the Verified status written against your Aadhaar details.
EPF Taxation Regulations
Until 2020, EPF contributions and interest were tax-free. However, in Budget 2021, the government announced that if an individual's EPF and VPF (Voluntary Provident Fund) deposits exceed Rs. 2.5 lakh in a financial year, the interest earned on the excess contributions will be taxable.
If the employer makes no contribution to the EPF account, the interest component is exempt up to a maximum deposit of Rs. 5 lakh in the fiscal year.
Customer Service EPF
If you have any questions or concerns, please contact the EPFO's customer service line:
Support - 1800118005 (Toll Free)
Headquarters:
14, Bhikaji Cama Place, New Delhi-110066 Bhavishya Nidhi Bhawan
Resolving EPF Complaints
Additionally, the EPFO has a grievance system through which members can register their grievances.
- Members may file complaints by visiting EPFiGMS.gov.in and clicking on the 'Register Grievance' tab.
- Members must complete all required information regarding their account, as well as a description of the grievance they have been experiencing.
- Files pertinent to the grievance can be uploaded to the site.
- By clicking on the 'View Status' tab, the member can also track the status of the grievance.
Continue reading: How to File an EPF Grievance Online
EPF on the Umang Application
Mobile users can access EPF services via the Umang app. The portal is divided into five distinct sections:
EPF Services Available on the Umang App
Services Focused on Employees
- Access the Passbook
- Increase Claim Values
- Keep track of Claims
- Retrieve Remittance Information via Establishment ID
- Determine TRRN Status
General Services of the EPF
- Establishment of Search
- Conduct an EPFO office search
- Be aware of the status of your claim
- Account Information via SMS
- Account Information Regarding Missed Call
Services to Pensioners
- Access the Passbook
- Jeevan Pramaan Update
Services eKYC
- Seeding Aadhaar
The EPF Scheme's Advantages
EPF is one of the largest and most comprehensive savings plans available to Indian employees. The following are the scheme's primary benefits:
Long-Term Financial Security: Because funds deposited in this account are not easily withdrawn, they help to ensure savings.
Retirement Period: Funds accumulated under this scheme may be used at the employee's retirement. This provides financial security for the retired employee.
Unforeseen circumstances: The employee may use the accumulated funds in the event of an emergency. The employee may elect to prematurely withdraw his or her funds. In certain exceptional circumstances, the scheme allows for such pre-term withdrawals.
Unemployment/Income Loss: If an employee's current job is lost for any reason, these funds may be used to cover expenses.
Employees who resign or quit their jobs are entitled to withdraw 75% of their EPF funds after one month and the remaining 25% after two months of unemployment.
In the event of an employee's death, the collected funds, along with interest, are distributed to the employee's nominee, assisting the family during difficult times.
Employee disability: If the employee is unable to work, he or she may use these funds to assist in getting through a difficult time.
Lay-off: In the event of an employee's sudden layoff or retrenchment from the job, this fund may be used to cover expenses until the employee finds another suitable position.
Pension Scheme: The employer contributes not only to the PF fund but also to the employee's pension, which the employee may use post-retirement.
Insurance Scheme: The act also contains provisions requiring employers to contribute to an employee's life insurance in the absence of group coverage. This programme ensures that employees are adequately insured.
Employees can easily access their PF account via the EPF member portal using their Universal Account Number (UAN). They are capable of transmitting
Employees can easily access their PF account via the EPF member portal using their Universal Account Number (UAN). They can transfer their accounts whenever they change jobs.
FAQs
I voluntarily withdrew a portion of my EPF corpus. Will I continue to earn interest on the amount withdrawn?
No, you will not earn interest on the amount withdrawn. The balance in the EPF account, on the other hand, will continue to earn interest.
How is a unique identifier (UAN) assigned?
When you begin working for a company with more than 20 employees, you automatically become eligible for EPF benefits. EPFO assigns each member a unique 12-digit permanent number known as the Universal Account Number (UAN). All of a member's PF accounts are linked to his UAN. To use the EPF portal's online services, you must link your UAN to your Aadhaar and PAN.
Will I be required to activate my UAN in order to transfer PF online?
Before you can process claims or withdraw funds online, you must activate your UAN by registering at the EPF member portal. You can easily do so by logging into the EPF member portal.
I've changed jobs. Is it necessary for me to obtain a new UAN?
No, the UAN assigned to a member remains constant throughout his or her service. The new employer will open a new PF account that will be linked to the member's UAN.
I've changed employers. Should I withdraw the corpus of my EPF or transfer it?
Transferring funds from your old PF account to a new one is recommended. If you withdraw the funds prior to five years of service, the withdrawal is taxable and should be included in other sources of income when filing your ITR.
I am currently unemployed and in need of financial assistance. Is it possible to withdraw my EPF corpus?
Yes, after one month of unemployment, you may withdraw 75% of your EPF corpus. If you are unable to find work for two consecutive months, you may withdraw the remaining 25% of the fund.
Is it still mandatory for members to link their Aadhaar numbers to their EPF accounts in order to access online services? If not, is it possible to de-link Aadhaar from UAN?
According to the EPFO's recent circular, UIADI has clarified that the EPFO may continue to offer Aadhaar-based authentication services for EPF schemes. Thus, you will be unable to access your EPF online services if you delink your Aadhaar from your UAN for the time being.
Additionally, the circular states that if a member visits the EPFO office to make an offline claim using Aadhaar KYC, the PRO will facilitate Aadhaar seeding on-site in order to submit the EPF claim online.
Additionally, employees whose Aadhaar is seeded with the UAN may be barred from filing offline claims going forward.
Is it tax deductible for both employee and employer contributions to my EPF account?
Contributions to the EPF are tax deductible, but the tax calculations are unique. Employer contributions to your EPF account are not included in your taxable income. As a result, the employer contribution is tax-exempt at the point of origin.
In contrast, the employee's contribution is included in his or her taxable income. However, the employee's contribution is tax deductible up to a maximum of Rs. 1.5 lakh per year under section 80C. Thus, an employee's contribution to the EPF account is tax deductible, but only under section 80C.
Additionally, if you withdraw from your EPF fund prior to five years of contributions, both the employee and employer contributions become taxable.
What percentage of salary is deducted for EPF?
Employees contribute 12% of their salary to the Provident Fund. Additionally, ESIC is deducted from gross salary at a rate of 1.75 percent from employee contributions and 4.75 percent from employer contributions.
What is the maximum amount that can be withdrawn from the EPF?
EPF can be withdrawn only at retirement or in certain emergency situations. After two months of retirement or unemployment, a complete withdrawal is possible. EPFO's new rule allows for the withdrawal of 75% of the EPF corpus after one month of unemployment. After obtaining new employment, the remaining 25% can be transferred to a new EPF account.
What if someone dies naturally or as a result of health problems? Will any of his/her family members be eligible to receive the EPF benefit?
If an EPF subscriber dies, the nominee, legal heir, or guardian in the case of a minor may receive the EPF balance. To do so, he must go to the EPF office and submit all required documents, including a death certificate and an EPF Composite Form. Additionally, a Guardian Certificate is required if the claim is made by a guardian of a minor who is not the natural guardian.
How do I withdraw funds from my Employee Provident Fund?
To withdraw funds, you must have an activated UAN and a registered mobile number. Assuming you meet these requirements, navigate to the EPF Member's Portal and log in using your UAN. Verify that your KYC documents are verified in the 'Manage' section. To begin, navigate to 'Online Services' and select 'Claim' from the drop-down menu that displays all of your personal information. Then, under 'I want to apply for,' select EPF Settlement or EPF Partial Withdrawal and click 'Proceed for Online Claim' to claim your withdrawal.
How do I make an Employee Provident Fund claim?
As previously stated, one must login to the EPF Member's Portal or e-SEWA Portal using their UAN and navigate to 'Online Services' in order to claim and withdraw the fund.
Recent EPF News
Mandatory Aadhaar Seeding for All EPF Accounts-June 1, 2021
As of 1st June 2021, EPFO has announced that all EPF accounts must be seeded with Aadhaar. Employers have been directed to allow ECR (Electronic Challan Cumulative Return) only for accounts seeded with the employee's Aadhaar. This means that if your Aadhaar number is not linked to your EPF account, your employer's contribution will be deducted from your EPF account. This determination was made pursuant to Section 142 of the Social Security Act of 2020.
For fiscal years 2020-21, the EPF interest rate will remain at 8.50 percent – Announced on March 4th, 2021
EPFO announced the EPF rate of interest at 8.50 percent on March 4th, 2021, maintaining the rate from the previous fiscal year 2019-20. In 2019-18, EPFO members earned an interest rate of 8.65 percent on their contributions to the government savings scheme. This year, 6.50 crore subscribers will benefit from this rate of 8.50 percent.
Important: To receive EPF interest, subscribers must ensure that their KYC information is current and accurate according to their PAN and bank records. Due to a KYC mismatch, approximately 40 lakh subscribers' interest payments for the financial year 2019-20 were delayed.
Budget 2021 – Taxation on EPF contributions exceeding Rs. 2.5 lakh
Finance Minister Nirmala Sitharaman announces in her Budget proposal for 1st February 2021 that contributions to EPF exceeding Rs. 2.5 lakh per annum will now be taxed. This will take effect on 1 April 2021, the start of the new fiscal year.
The stated purpose of this new development is to better organise the tax exemptions available to those with a high income.
Interest Rate on EPF Revision for 2019-20: Reduced by 0.15 percent
On 3 March 2020, Union Labour Minister Santosh Gangwar announced the new EPF interest rates. The scheme's interest rate has been reduced by 0.15 percent for the current fiscal year. The interest rate for 2019-20 is 8.50 percent, down from 8.65 percent previously.
"The EPFO's Central Board of Trustees (CBT) meeting held today approved an interest rate of 8.5 percent on EPF deposits for 2019-20," Gangwar states.
In response to persistent worker demands for an increase in EPF interest rates, the directors approved a new percentage that will pay less interest on fund deposits made by salaried employees. Economic slowing and its adverse effect on debt market instruments such as government securities and FDs could be a significant factor in the EPF interest rate cut for the financial year 2019-20. The Indian retirement fund invests 15% in equity and 85% in debt instruments, implying that a decline in debt investments would have harmed the fund's income in 2019-20.
Previously, in 2016-17 and 2018-19, the EPFO offered subscribers an interest rate of 8.65 percent. Additionally, it was 8.8% in 2015-16. Interest of Rs. 54,000 Cr. to be distributed to 6 Cr. EPF Accounts
The Labour Ministry has announced an 8.65 percent interest rate on Employees Provident Funds (EPF) for the fiscal year 2018-19. As a result, the year's interest will be credited to the accounts of approximately 6 Crore EPFO subscribers. The aggregate amount payable to these subscribers will be Rs.54,000 Crore.
The EPF's withdrawal claims for the given year will be settled at the higher rate of 8.65 percent, not 8.55 percent. Interest rates were revised effective February 22, 2019.
Subscribers may access their PF status online through the following channels:
1. Website of the EPFO (www.epfindia.gov.in)
2. Umang Application (available for download from the App Store/Google Play Store).
3. Ignored Call (Number- 011-22901406)
4. SMS Service (Send an SMS to 7738299899 with the subject line EPFOHO UAN>LAN>).
However, it should be noted that only users who have registered on the UAN member portal and activated their UAN number can access the online platforms to check their balance.
Aadhaar Card Is Required for Nominees for EPF Accounts
According to the Employees' Provident Fund Organisation's (EPFO) new rules, submitting the nominee's Aadhaar card number is required for e-nomination of your provident fund account. The newly established e-nomination function on EPFO requires subscribers to not only link their Aadhaar card to their account but also to submit the nominee's Aadhaar card number. Apart from the Aadhaar card number, the nominee/s must provide scanned images, their date of birth, and their mobile number. Submission of the nominee's bank information, on the other hand, is optional.
Latest Amendments to the Employees Provident Fund Act in 2019
The government intends to amend EPF, having prepared a draught bill that would allow employees to transfer funds from EPF (Employee Provident Fund) to NPS (National Pension Scheme). Another proposal is to repeal the existing definition of 'wage' (in the EPF Act) and replace it with the one found in the 2019 Code of Wages. The new wage definition is likely to have an effect on the EPF contributions made by employees earning less than Rs 15,000.
EPF Eligibility, Interest Rates, Contribution & Payment in India
List of Home Savings Plans: Their Types, Interest Rates, and Terms EPF Eligibility, Interest Rates, Contribution & Payment in India
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14-09-2021 06:56:05 A.M.
The Employee Provident Fund (EPF) is a pension plan administered by the Employees' Provident Fund Organization (EPFO). Employees and employers both contribute 12 percent of their basic salary and dearness allowance to the EPF scheme on a monthly basis. 8.33 percent of the employer contribution is allocated to the Employee Pension Scheme.
Continue reading to learn about the EPF scheme, interest rate, eligibility, contribution, withdrawal, and online management of your EPF account.
Are you aware?
From June 1, 2021, it will be mandatory to link your Aadhaar number to your EPF account. Otherwise, your account will not be credited with the employer's contribution. To learn how to link your Aadhaar number to your EPF account, click here.
Interest Rates on EPF Funds for Fiscal Years 2021-22
Annually, the interest rate on EPF is reviewed. For FY 2021-22, the EPF's interest rate is 8.50 percent. Once EPFO publishes the interest rate for a fiscal year and the fiscal year ends, the interest rate is calculated for each month's closing balance and then for the entire fiscal year.
The year in which new interest rates are announced remains valid for the following fiscal year, that is, from the fiscal year beginning on 1st April to the fiscal year ending on 31st March the following year. The following are some critical facts about the EPF Interest Rate:
- The interest rate of 8.50 percent is valid and will apply to EPF deposits made between April 2021 and March 2022.
- Despite the fact that interest is calculated monthly, it is transferred to the Employees' Provident Fund account only once a year on March 31st of the applicable fiscal year.
- The transferred interest is added to the following month's balance, i.e. April's balance, and is then used to calculate interest.
- If no contribution is made to an EPF account for a continuous period of thirty-six months, the account becomes dormant or inoperative.
- Interest is paid on inactive accounts maintained by employees who have not reached retirement age.
- Interest is not paid on funds deposited in retired employees' inactive accounts.
- Interest earned on dormant accounts is subject to tax at the member's slab rate.
- The employee shall not receive interest on employer contributions to the Employees' Pension Scheme. However, after the age of 58, a pension is paid from this amount.
Calculation of the EPF Interest Rate
Assume an employee began contributing in November 2020.
Contribution Commencement Month
2020 November
Rate of Interest (p.a)
8.5 %
Interest Rates Monthly
8.50/12 = 0.7083%
Contribution of Employees
12% of Rs. 15,000 equals Rs. 1,800
Contribution of the Employer
1,800 rupees (8.33 percent in Pension, 3.67 percent in EPF)
Actual Employer Contribution to the EPF Account
3.67 percent of 15,000 rupees equals 550 rupees.
Monthly Contribution Amount in EPF Account
1800 + 550 = 2,350
The following month's (December) balance will be calculated in the following manner:
- Carryover balance from November 2021 equals Rs. 2,350.
- Interest earned in December 2021 equals Rs. 16.75
- End-of-December 2019 balance = Rs. 2,350 + Rs. 2,350 = Rs. 4,700
Although interest was earned in December 2020, it will be credited to the account at the end of the fiscal year on March 31, 2021.
Contribution to the EPF
Employers and employees contribute equally to the EPF account, as shown below.
Contribution of the
Monthly Contribution Percentage
Employer
12%
Employee
12% or 10%
Total
24%
Important Points to Remember About EPF Contribution:
Employer contribution of 12% includes 3.67 percent EPF and 8.33 percent EPS.
- A 10% EPF contribution is applicable to businesses with fewer than 20 employees, businesses with losses greater than or equal to their net worth (at the end of the fiscal year), and businesses declared sick by the Board for Industrial and Financial Reconstruction.
- The employer contributes a total of 8.33 percent to the Employees' Pension Scheme and 3.67 percent to the Employees' Provident Fund.
- The employee's contribution is entirely devoted to the employee's provident fund.
- In addition to the above-mentioned contributions, the employer is required to pay an additional 0.5 percent toward EDLI.
- The employer must also bear certain administration costs associated with EDLI and EPF, which are currently 1.1 percent and 0.01 percent, respectively. This means that the employer is required to contribute a total of 13.61 percent of the employee's salary to the plan.
Contribution of Employees to the EPF
In general, the employee's contribution rate is set at 12%. However, the rate is fixed at 10% for the organisations listed below:
- Organizations or businesses with a maximum of 19 employees.
- Industries designated as sick by the BIFR
- Organizations incur annual losses that are significantly greater than their net value.
- Industries producing coir, guar gum, beedi, bricks, and jute.
- Organizations with a wage ceiling of Rs. 6,500.
Contribution of the Employer to the EPF
The employer's minimum contribution is set at 12 percent of Rs. 15,000 (although they can voluntarily contribute more). This amount equates to approximately Rs. 1,800 per month. This means that both the employer and employee are required to contribute Rs. 1,800 per month to the scheme. Initially, this amount was set at 12 percent of Rs. 6,500, which equated to Rs. 780 in employer and employee contributions.
- Both parties contribute to the EPFO (Employees Provident Fund Organisation)
- This is a long-term investment vehicle for contributors that enables them to maintain an independent lifestyle following retirement.
Eligibility Criteria for the EPF
- Employees must join the scheme as an active member in order to receive benefits under the scheme.
- Employees of an organisation are immediately eligible to receive Provident Fund, insurance, and pension benefits upon their employment.
- Any organisation with a minimum of 20 employees is required to provide EPF benefits to its employees.
- This scheme is insufficient to meet the needs of residents of Jammu and Kashmir.
How do employers become EPF members?
To register for the EPF, follow the steps outlined below:
- Visit the website of the Employee Provident Fund Organisation (EPFO).
- Navigate to the 'Establishment Registration' section, which opens a new page with the 'Instruction Manual'. It will detail the process of Employer Registration, followed by the registration of the Employer's DSC [Digital Signature Certificate], which is required prior to submitting a new application.
- Acknowledge the statement 'I have read the instruction manual' To proceed, check the box and enter your information to register.
- An email with an activation link is sent, as well as a mobile PIN. To register, you must upload certain documents.
- Those who have previously registered may access their account by entering their Universal Account Number (UAN)
How do EPF members (employees) access their EPF accounts?
You must first visit the EPF member website, i.e. EPF e-SEWA/EPF Members Portal, and then select the option to login using your UAN on the right side. UAN, on the other hand, must have been activated previously.
What exactly is UAN?
The Universal Account Number (UAN) is a 12-digit number assigned to each employee by the Employees' Provided Fund Organization (EPFO) for the purpose of managing his or her PF accounts. It enables the individual to access all Provided Fund (PF) information in one location, regardless of the organisation for which he works. The employee can easily withdraw and transfer funds using the UAN.
Activation of the EPF UAN
To activate your UAN, simply follow the steps outlined below:
Step 1: Navigate to the EPF's member website, i.e. the EPF e-SEWA/EPF Members Portal.
Step 2: In the right-hand corner, locate the option 'Activate UAN' and click on it.
Step 3: When the new dashboard appears, enter your UAN, PAN, or Aadhar number, as well as other EPFO-recorded information such as your name, birthdate, and so on.
Step 4: Enter the 'captcha' code and receive an authorization PIN on the mobile device you registered with EPFO.
Step 5: Activate and validate the UAN online using the One Time Password (OTP).
Step 6: A second message will be sent to confirm the UAN's activation.
Step 7: After activating your UAN, you can use it to check the Provident Fund's status.
Update to the EPF's Know Your Customer Policy
Step 1: Log in to the EPF Members Portal using your UAN and password.
Step 2: When the new page loads, click on KYC from the dropdown menu under the 'Manage' section.
Step 3: Update information such as the name and number of your PAN, Aadhar, and bank documents.
Step 4: Save it; it will show as Pending KYC until the other end verifies it.
How do I determine my EPF balance?
A member can check his or her EPF balance online by following these simple steps:
Step 1: Navigate to the EPF's website, which is located at www.epfindia.gov.in.
Step 2: Navigate to the 'For Members' section of the "Our Services" menu.
Step 3: Select 'Member Passbook' from the drop-down menu.
Step 4: Now, enter your EPF account's 'UAN', password, and captcha code.
To view your passbook, select the 'Member ID' option.
Step 6: The document will display your passbook in its entirety.
Step 7: The member may also check his EPF balance by texting EPFOHO UAN> ENG to '7738299899'.
You can also check your EPF balance by dialling 011-22901406 and leaving a missed call.
EPF Application Forms
Different EPF forms are required for each activity that employees wish to conduct with their accounts; these activities include registration, withdrawal, transfer of PF, borrowing from an existing EPF account, and any other purpose.
EPF Application
Utilization of the EPF Form
Download
31st Form
Withdrawal from the EPF
⇩
14th Form
Purchasing a life insurance policy
⇩
10D-Form
In order to obtain a monthly pension
⇩
10C Form
For the purpose of claiming EPS withdrawal benefits/scheme certification
⇩
11th Form
Transfer of EPF Account
⇩
Formulary 19
Final Settlement of Employees' Provident Funds
⇩
Form twenty-one
EPF Final settlement in the event of an employee's death
⇩
Type 2
Form of declaration and nomination for EPF and EPS
⇩
Form 5 IN THE EVENT
Claim in accordance with the EDLI scheme
⇩
15G Form
To avoid paying TDS on interest earned on EPF
⇩
5e forme
New employees enrolling in the EPF and EPS
⇩
11th Form
Automatic EPF transfer
⇩
Withdrawal from the EPF
EPF benefits may be withdrawn in whole or in part. When an individual retires or is unemployed for more than two months, he or she may make a complete withdrawal. Whereas, in certain circumstances, partial EPF withdrawal is permitted. You can make an EPF withdrawal claim online by completing the EPF withdrawal form. However, the online withdrawal claim facility is available only if your Aadhaar number is linked to your UAN.
To complete the EPF withdrawal form and initiate an online claim, follow the steps below:
-
Step 1– Log in using your UAN and password to the UAN Member Portal.
Step 2- From the top menu bar, click on the 'Online Services' tab and then on the drop-down menu next to 'Claim (Form-31, 19 & 10C).
Step 3– The screen will display the member's information. Enter your bank account's last four digits and click 'Verify'.
Step 4– Select 'Yes' to sign the undertaking certificate and continue.
Step 5– At this point, click the 'Proceed with Online Claim' option.
Step 6– To withdraw funds online, select 'PF Advance (Form 31).'
Step 7 – A new section of the form will open, prompting you to enter the 'Purpose for which the advance is required,' the required amount, and the employee's address.
It's worth noting that all options that are not withdrawable will be highlighted in red.
Step 8 – Ensure that the certification is checked and submit your application.
Step 9 – Depending on the purpose for which you filled out the form, you may be required to submit scanned documents.
Step 10 – Once your employer approves your withdrawal request, the funds will be transferred from your EPF account and deposited in the bank account specified on the withdrawal form.
An SMS notification will be sent to the mobile number associated with your EPFO account. After processing the claim, the funds will be transferred to your bank account. Although the EPFO has not specified a time frame, funds are typically credited within 15-20 days.
Withdrawal of the EPF: A News Update (1st June 2021)
EPFO permits members to withdraw funds from their EPF accounts twice in order to meet COVID-19 emergency requirements.
The labour ministry announced that EPF members can now make two withdrawals from their EPF account to cover emergency expenses incurred as a result of the Coronavirus pandemic. Members may take a non-refundable withdrawal of up to 75% of the balance in their EPF account or three months' salary and dearness allowance, whichever is less. Additionally, EPFO has committed to settling these withdrawal claims within three days and has established an auto-claim settlement process for members who have completed their KYC in all respects.
How to Make an Online EPF Transfer?
Step 1: Log in using your UAN and password to the EPFO members' portal.
Step 2: On the home page's main menu, select 'Online Services' and then 'Transfer Request' to generate an online transfer request.
Step 3: A new dashboard will appear, displaying all of your personal information. Verify all of the above, including your DOB, EPF number, and date of joining, in order to claim the process.
Step 4: Once verified, return to Step 1, select previous or current employer, and then enter the information for the previous employer from whom you wish to claim.
Step 5: Submit your information; an OTP will be sent to the mobile number associated with your account. After verifying your identity with the OTP, the request will be submitted and an online filled-in form generated. You must sign and return the form to your current or previous employer.
Employers will also receive an online notification regarding the EPF transfer request. The EPFO Office will process your claim only after your employer electronically transmits it to the EPFO following verification of your employment details.
After submitting your request, you can track the status of your EPF transfer claim by selecting the 'Track Claim Status' menu item from the 'Online Services' menu.
How to online link your EPF account to Aadhaar?
Online, you can easily link your Aadhaar number to your EPF account. Adhere to the steps outlined below:
Step 1: Log in to the EPFO member portal using your credentials.
Step 2: From the menu bar, select the 'Manage' option.
Step 3: Select the 'KYC' option from the drop-down list.
Step 4: From the list of documents, select 'Aadhaar'.
Step 5: Enter your Aadhaar Number and Name exactly as they appear on your Aadhaar card.
Step 6: Save and continue
Step 7: Your Aadhaar data will be compared to that of UIDAI.
Your Aadhaar will be linked to your EPF account upon successful approval, and you will see the Verified status written against your Aadhaar details.
EPF Taxation Regulations
Until 2020, EPF contributions and interest were tax-free. However, in Budget 2021, the government announced that if an individual's EPF and VPF (Voluntary Provident Fund) deposits exceed Rs. 2.5 lakh in a financial year, the interest earned on the excess contributions will be taxable.
If the employer makes no contribution to the EPF account, the interest component is exempt up to a maximum deposit of Rs. 5 lakh in the fiscal year.
Customer Service EPF
If you have any questions or concerns, please contact the EPFO's customer service line:
Support - 1800118005 (Toll Free)
Headquarters:
14, Bhikaji Cama Place, New Delhi-110066 Bhavishya Nidhi Bhawan
Resolving EPF Complaints
Additionally, the EPFO has a grievance system through which members can register their grievances.
- Members may file complaints by visiting EPFiGMS.gov.in and clicking on the 'Register Grievance' tab.
- Members must complete all required information regarding their account, as well as a description of the grievance they have been experiencing.
- Files pertinent to the grievance can be uploaded to the site.
- By clicking on the 'View Status' tab, the member can also track the status of the grievance.
Continue reading: How to File an EPF Grievance Online
EPF on the Umang Application
Mobile users can access EPF services via the Umang app. The portal is divided into five distinct sections:
EPF Services Available on the Umang App
Services Focused on Employees
- Access the Passbook
- Increase Claim Values
- Keep track of Claims
- Retrieve Remittance Information via Establishment ID
- Determine TRRN Status
General Services of the EPF
- Establishment of Search
- Conduct an EPFO office search
- Be aware of the status of your claim
- Account Information via SMS
- Account Information Regarding Missed Call
Services to Pensioners
- Access the Passbook
- Jeevan Pramaan Update
Services eKYC
- Seeding Aadhaar
The EPF Scheme's Advantages
EPF is one of the largest and most comprehensive savings plans available to Indian employees. The following are the scheme's primary benefits:
Long-Term Financial Security: Because funds deposited in this account are not easily withdrawn, they help to ensure savings.
Retirement Period: Funds accumulated under this scheme may be used at the employee's retirement. This provides financial security for the retired employee.
Unforeseen circumstances: The employee may use the accumulated funds in the event of an emergency. The employee may elect to prematurely withdraw his or her funds. In certain exceptional circumstances, the scheme allows for such pre-term withdrawals.
Unemployment/Income Loss: If an employee's current job is lost for any reason, these funds may be used to cover expenses.
Employees who resign or quit their jobs are entitled to withdraw 75% of their EPF funds after one month and the remaining 25% after two months of unemployment.
In the event of an employee's death, the collected funds, along with interest, are distributed to the employee's nominee, assisting the family during difficult times.
Employee disability: If the employee is unable to work, he or she may use these funds to assist in getting through a difficult time.
Lay-off: In the event of an employee's sudden layoff or retrenchment from the job, this fund may be used to cover expenses until the employee finds another suitable position.
Pension Scheme: The employer contributes not only to the PF fund but also to the employee's pension, which the employee may use post-retirement.
Insurance Scheme: The act also contains provisions requiring employers to contribute to an employee's life insurance in the absence of group coverage. This programme ensures that employees are adequately insured.
Employees can easily access their PF account via the EPF member portal using their Universal Account Number (UAN). They are capable of transmitting
Employees can easily access their PF account via the EPF member portal using their Universal Account Number (UAN). They can transfer their accounts whenever they change jobs.
FAQs
I voluntarily withdrew a portion of my EPF corpus. Will I continue to earn interest on the amount withdrawn?
No, you will not earn interest on the amount withdrawn. The balance in the EPF account, on the other hand, will continue to earn interest.
How is a unique identifier (UAN) assigned?
When you begin working for a company with more than 20 employees, you automatically become eligible for EPF benefits. EPFO assigns each member a unique 12-digit permanent number known as the Universal Account Number (UAN). All of a member's PF accounts are linked to his UAN. To use the EPF portal's online services, you must link your UAN to your Aadhaar and PAN.
Will I be required to activate my UAN in order to transfer PF online?
Before you can process claims or withdraw funds online, you must activate your UAN by registering at the EPF member portal. You can easily do so by logging into the EPF member portal.
I've changed jobs. Is it necessary for me to obtain a new UAN?
No, the UAN assigned to a member remains constant throughout his or her service. The new employer will open a new PF account that will be linked to the member's UAN.
I've changed employers. Should I withdraw the corpus of my EPF or transfer it?
Transferring funds from your old PF account to a new one is recommended. If you withdraw the funds prior to five years of service, the withdrawal is taxable and should be included in other sources of income when filing your ITR.
I am currently unemployed and in need of financial assistance. Is it possible to withdraw my EPF corpus?
Yes, after one month of unemployment, you may withdraw 75% of your EPF corpus. If you are unable to find work for two consecutive months, you may withdraw the remaining 25% of the fund.
Is it still mandatory for members to link their Aadhaar numbers to their EPF accounts in order to access online services? If not, is it possible to de-link Aadhaar from UAN?
According to the EPFO's recent circular, UIADI has clarified that the EPFO may continue to offer Aadhaar-based authentication services for EPF schemes. Thus, you will be unable to access your EPF online services if you delink your Aadhaar from your UAN for the time being.
Additionally, the circular states that if a member visits the EPFO office to make an offline claim using Aadhaar KYC, the PRO will facilitate Aadhaar seeding on-site in order to submit the EPF claim online.
Additionally, employees whose Aadhaar is seeded with the UAN may be barred from filing offline claims going forward.
Is it tax deductible for both employee and employer contributions to my EPF account?
Contributions to the EPF are tax deductible, but the tax calculations are unique. Employer contributions to your EPF account are not included in your taxable income. As a result, the employer contribution is tax-exempt at the point of origin.
In contrast, the employee's contribution is included in his or her taxable income. However, the employee's contribution is tax deductible up to a maximum of Rs. 1.5 lakh per year under section 80C. Thus, an employee's contribution to the EPF account is tax deductible, but only under section 80C.
Additionally, if you withdraw from your EPF fund prior to five years of contributions, both the employee and employer contributions become taxable.
What percentage of salary is deducted for EPF?
Employees contribute 12% of their salary to the Provident Fund. Additionally, ESIC is deducted from gross salary at a rate of 1.75 percent from employee contributions and 4.75 percent from employer contributions.
What is the maximum amount that can be withdrawn from the EPF?
EPF can be withdrawn only at retirement or in certain emergency situations. After two months of retirement or unemployment, a complete withdrawal is possible. EPFO's new rule allows for the withdrawal of 75% of the EPF corpus after one month of unemployment. After obtaining new employment, the remaining 25% can be transferred to a new EPF account.
What if someone dies naturally or as a result of health problems? Will any of his/her family members be eligible to receive the EPF benefit?
If an EPF subscriber dies, the nominee, legal heir, or guardian in the case of a minor may receive the EPF balance. To do so, he must go to the EPF office and submit all required documents, including a death certificate and an EPF Composite Form. Additionally, a Guardian Certificate is required if the claim is made by a guardian of a minor who is not the natural guardian.
How do I withdraw funds from my Employee Provident Fund?
To withdraw funds, you must have an activated UAN and a registered mobile number. Assuming you meet these requirements, navigate to the EPF Member's Portal and log in using your UAN. Verify that your KYC documents are verified in the 'Manage' section. To begin, navigate to 'Online Services' and select 'Claim' from the drop-down menu that displays all of your personal information. Then, under 'I want to apply for,' select EPF Settlement or EPF Partial Withdrawal and click 'Proceed for Online Claim' to claim your withdrawal.
How do I make an Employee Provident Fund claim?
As previously stated, one must login to the EPF Member's Portal or e-SEWA Portal using their UAN and navigate to 'Online Services' in order to claim and withdraw the fund.
Recent EPF News
Mandatory Aadhaar Seeding for All EPF Accounts-June 1, 2021
As of 1st June 2021, EPFO has announced that all EPF accounts must be seeded with Aadhaar. Employers have been directed to allow ECR (Electronic Challan Cumulative Return) only for accounts seeded with the employee's Aadhaar. This means that if your Aadhaar number is not linked to your EPF account, your employer's contribution will be deducted from your EPF account. This determination was made pursuant to Section 142 of the Social Security Act of 2020.
For fiscal years 2020-21, the EPF interest rate will remain at 8.50 percent – Announced on March 4th, 2021
EPFO announced the EPF rate of interest at 8.50 percent on March 4th, 2021, maintaining the rate from the previous fiscal year 2019-20. In 2019-18, EPFO members earned an interest rate of 8.65 percent on their contributions to the government savings scheme. This year, 6.50 crore subscribers will benefit from this rate of 8.50 percent.
Important: To receive EPF interest, subscribers must ensure that their KYC information is current and accurate according to their PAN and bank records. Due to a KYC mismatch, approximately 40 lakh subscribers' interest payments for the financial year 2019-20 were delayed.
Budget 2021 – Taxation on EPF contributions exceeding Rs. 2.5 lakh
Finance Minister Nirmala Sitharaman announces in her Budget proposal for 1st February 2021 that contributions to EPF exceeding Rs. 2.5 lakh per annum will now be taxed. This will take effect on 1 April 2021, the start of the new fiscal year.
The stated purpose of this new development is to better organise the tax exemptions available to those with a high income.
Interest Rate on EPF Revision for 2019-20: Reduced by 0.15 percent
On 3 March 2020, Union Labour Minister Santosh Gangwar announced the new EPF interest rates. The scheme's interest rate has been reduced by 0.15 percent for the current fiscal year. The interest rate for 2019-20 is 8.50 percent, down from 8.65 percent previously.
"The EPFO's Central Board of Trustees (CBT) meeting held today approved an interest rate of 8.5 percent on EPF deposits for 2019-20," Gangwar states.
In response to persistent worker demands for an increase in EPF interest rates, the directors approved a new percentage that will pay less interest on fund deposits made by salaried employees. Economic slowing and its adverse effect on debt market instruments such as government securities and FDs could be a significant factor in the EPF interest rate cut for the financial year 2019-20. The Indian retirement fund invests 15% in equity and 85% in debt instruments, implying that a decline in debt investments would have harmed the fund's income in 2019-20.
Previously, in 2016-17 and 2018-19, the EPFO offered subscribers an interest rate of 8.65 percent. Additionally, it was 8.8% in 2015-16. Interest of Rs. 54,000 Cr. to be distributed to 6 Cr. EPF Accounts
The Labour Ministry has announced an 8.65 percent interest rate on Employees Provident Funds (EPF) for the fiscal year 2018-19. As a result, the year's interest will be credited to the accounts of approximately 6 Crore EPFO subscribers. The aggregate amount payable to these subscribers will be Rs.54,000 Crore.
The EPF's withdrawal claims for the given year will be settled at the higher rate of 8.65 percent, not 8.55 percent. Interest rates were revised effective February 22, 2019.
Subscribers may access their PF status online through the following channels:
1. Website of the EPFO (www.epfindia.gov.in)
2. Umang Application (available for download from the App Store/Google Play Store).
3. Ignored Call (Number- 011-22901406)
4. SMS Service (Send an SMS to 7738299899 with the subject line EPFOHO UAN>LAN>).
However, it should be noted that only users who have registered on the UAN member portal and activated their UAN number can access the online platforms to check their balance.
Aadhaar Card Is Required for Nominees for EPF Accounts
According to the Employees' Provident Fund Organisation's (EPFO) new rules, submitting the nominee's Aadhaar card number is required for e-nomination of your provident fund account. The newly established e-nomination function on EPFO requires subscribers to not only link their Aadhaar card to their account but also to submit the nominee's Aadhaar card number. Apart from the Aadhaar card number, the nominee/s must provide scanned images, their date of birth, and their mobile number. Submission of the nominee's bank information, on the other hand, is optional.
Latest Amendments to the Employees Provident Fund Act in 2019
The government intends to amend EPF, having prepared a draught bill that would allow employees to transfer funds from EPF (Employee Provident Fund) to NPS (National Pension Scheme). Another proposal is to repeal the existing definition of 'wage' (in the EPF Act) and replace it with the one found in the 2019 Code of Wages. The new wage definition is likely to have an effect on the EPF contributions made by employees earning less than Rs 15,000.