The Employee Provident Fund, popularly referred to as PF is the
retirement saving & social security scheme available to all of the salaried
personnels i.e., workers, is backed Indian Government on which fixed interest
is paid.
The employee provident fund is Governed by the Employees Provident Fund Organization
(EPFO), an organization Which comes under the
Ministry of Labour and Employment Govt. of india. It is Established to
administer the regular contribution
Employers and employees in the Provident Fund , PF scheme.
The Employee
Provident Fund Rules:
1. Today, many agencies offer the PF (provident fund) facility. The
Employee Provident Fund (EPF) and Employee Pension Scheme (EPS) are the two
ways of retirement saving schemes offered below the Employees’ Provident Funds
and Miscellaneous Provisions Act, 1952, supposed for the salaried employees.
2. For every employee, it is mandatory to make a contribution in the
direction of EPF and EPS if he's drawing a primary pay of up to Rs 6500. If any
worker is drawing a basic salary over
6501 Rupees monthly, then he can ask for PF deductions from his salary.
3. Both the personnel and employers make contributions of 12% each . 12%
from the basic and dearness allowance from the employee to the provident fund
(PF) account and same amount from the employer’s side. Thus, the total
contribution to the PF is 24% monthly.
4. In the EPF account, whole 12% is contributed From the employee’s side
, at the same time as 3.67% is contributed from the employer” side . The
employer’s remaining contribution of 8.33% is diverted to the Employee’s
Pension Scheme. It is vital to word that if the worker salary exceeds Rs. 6500,
the employer’s contribution closer to EPS is restricted to 8.33% of Rs 6500
(Rs. 541) in that month.
5. Currently, Employee provident fund interest rate is 8.8% annually
(w.e.f/ Feb 2016). The interest rate is decided by central Government with the
considerations of Central Board of Trustees of the EPFO.
6. The EPF also offers the nomination facility. Any EPF holder can
nominate his mother, father, wife/Husband after the demise of Epf holder
However, an employee can't nominate his siblings for EPF.
7. The Employee or worker’s
contribution to the EPF offers Tax benefit under 80 c of income tax act.
8. The following are the EPF withdrawals Rules:
a. A worker/employee can't
withdraw a full EPF amount until he arrives to the age of retirement. In
employee stops working voluntarily or
involuntarily because of any reason other than retirement maximum withdrawal
cannot exceed the aggregate contribution of the employee and the interest
accrued thereon. An employee can withdraw an employer’s portion most effective
after reaching the retirement age.
b.An employee can withdraw only his contribution and the interest
accrued on his contribution when he
resigns from any company. The part of the employer’s contribution can be
withdrawn until the employee attains the retirement age. So, the employee
remains to be the member of the EPF scheme till he attains the age of
retirement.
c.The retirement age has been extended from 55 years to 58 years.
d.An employee can withdraw up to 90% of the EPF amount on accomplishing
the age of 57 years.
e.No tax will be charged on PF withdrawals at the time of retirement.
- Member Passbook
- Member UAN/Online Service (OCS/OTCP)
- OCS / UMANG - FAQs / Eligibility
(170.7KB) - Know Your Claim Status
- EPFiGMS (Register your Grievance)
- Fillable Application Form for COC
- Pensioner's Portal
IMPORTANT LINKS
