The Employee Provident Fund Organization is the largest organization in the world serving over a million people and maintaining savings of almost 24.77 crore accounts. Over the past many years, EPF has continued to save the money of the employees and is a vast organization in terms of its client base.
The Employee Provident Fund was announced as the Employees’ Provident Funds Ordinance on 15th November 1951. However, it received its actual status in 1952 with the Employees’ Provident Funds Act. Nowadays, the act has been renamed the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952.
Under this scheme, the employees contribute a certain amount from their salaries and the same amount is contributed by their companies too. After retirement, the employee receives a sum total of the amount that he or she contributed and the employer contributed.
The current rate of interest for the financial year 2021-22 is 8.50%. The interest is calculated every month but is deposited at the end of the financial year. The amount of EPF interest is calculated as follows-
The employee can contribute 12% of the basic salary + dearness allowance. If the number of employees in the organization is less than 20 or for Jute, Coir, Beedi, Brick, Guar Gum factories. The employer contributes 8.33 % towards the Employee Pension scheme account of the employee and 3.67 % is added to the employee’s EPF.
The employer also needs to pay a minimum additional charge of around Rs. 500 and in cases of no significant payment, the employer has to pay a fee of Rs. 75. The calculation goes like this:-
Monthwise EPF contribution = employee’s contribution + employer’s contribution
Interest amount = ( Month Wise contribution + interest rate )/12
There is an online registration portal for the access of the EPF account. Also, the employee can track the status of their accounts and also, withdraw or transfer their funds to their current member ID. There is a help desk number over which you can give a missed call to know about your account status.
The online portal of EPFO has developed the ease of doing all the tasks while just sitting at home. The registrations and everything are so simplified as compared to the earlier days when it was such a hard task.
If you are an employer, your UAN number is a rescuer. UAN is a unique code that is assigned to all PF accounts so that they can be checked whenever and wherever required.
Since September 2015, it has been made compulsory that all the establishments pay PF online. This can be facilitated by the employer either directly on the EPFO website or through any authorized bank. At present, EPFO has a tie-up with 10 banks for the collection of EPF dues. These banks are PNB, SBI, Indian Bank, Bank of Baroda, HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank.
All the employees can also check the status and the current balance in their Provident Fund account passbooks using their UAN.
Firstly, the employer needs to furnish certain accurate details, which are as follows:-
Firstly, the employer needs to furnish certain accurate details, which are as follows:-
List of the documents required for the EPF registration:-
EPF can be withdrawn completely or partially. Complete withdrawal is permissible if the employee has retired or has remained unemployed for 2 months in continuation. Partial withdrawal is permissible in certain cases. Give below is the procedure for withdrawal of Provident fund:-
There are five services on the Umang app:-
Employee Centric Services-Employee provident fund scheme is a nationalized mission that aims to support the workforce of our country. Also, the paperless online system has made the process more convenient and up to date with the developing society. This scheme has helped millions of people around the world by giving them the ease of doing business and the ease of living for its members. We, at https://filinglounge.com/, offer various financial services at your one click. We have a team of experienced professionals who are constantly there to support our customers. In case of any inquiry related to EPF registration, kindly visit our website https://filinglounge.com/enquiry.php and fill up the inquiry form. If you are looking for an instant solution, write to us at care@filinglounge.com
No, the employer cannot do so. It is a criminal offense.
The interest is credited every month as soon as the new financial year ends.
No, the employee can only contribute as long as he or she is in service.
No, an employee cannot opt out of the EPF scheme. It is mandatory for all salaried professionals.
It can take almost 20-25 days to get an establishment registered.
No, the employer cannot do so.
The wages paid in a calendar month will be taken to determine the contribution date.
The person whose claim is unsettled can approach the Regional P.F. Commissioner or log a complaint on the website.
In case the member is resigning from service, he or she has to wait for a period of 2 months before withdrawal.
There will be different membership for different establishments.
No, but as soon as he or she ceases to be an apprentice, he or she must be enrolled immediately.
Pension =Pensionable salary(average of last 60 months)x pensionable service/70