- 1 The Employees’ Provident Fund (EPF) Scheme
The Employees’ Provident Fund (EPF) Scheme
The Employee Provident Fund Scheme India has established in 1952 after Independence by replacing the Employee Provident Fund Ordinance, 1951 scheme.
EPF Scheme has basically Three Bodies the government, employers, and employees. The Board is assisted by the Employees’ Provident Fund Organisation (EPFO) which falls under Ministry of Labour and Employment.
What is Purpose of EPF Scheme?
The Main Purpose of EPF Scheme is of providing for the future of industrial workers after their retirement or for their dependents, in the event of their premature death engaged the attention of the Central Government for a long time.
EPF scheme also helps to promote retirement savings for employees across India. The Employees’ Provident Fund (EPF) is a corpus of funds built by monthly, contributions made by an employee of the particular company and his/her employer. The amount contributed to the fund is based on a fixed rate Based on the Basic Salary of Employees.
Employees earn interest on their EPF balances which will add to their EPF Account. Here Note one thing that the interest earned and the total amount withdrawn at maturity are totally tax-free, Which will make this Scheme very Beneficial for the Employee. After the Person retires He/She will get this Savings, Meanwhile, In some case of Emergency, they can take their EPF Money.
What are the Benefits of EPF Scheme?
There are Many Benefits of EPF Scheme Listed Below.
- Tax-free earnings: The Money that is Deposited in your PF Account get the Interest Decided by Government. The Amount is Tax-Free. Employee Don’t Need to Pay any Tax for their PF Earnings.
- Retirement – At the Time of Retirement Employee gets the Amount Which he/she Saved During his Job.
- Emergencies – The funds are also useful in times of emergencies to meet certain requirements for which premature withdrawals are allowed in certain cases.
- Loss of income – If an employee for some reason cannot work any longer, these funds help tide over the loss of income.
- Long-term savings option: EPF is Good Option for a Long-term Saving Goals and also Tax-free.
- Pension: Along with provident funds, an employer also contributes towards an employee’s pension fund which the employee can eventually use upon retirement.
- Insurance: An employer also contributes towards an employee’s life insurance in the absence of a group cover, thereby ensuring employees are insured.
Calculate Employer’s Contribution to EPF
According to EPF Act, The minimum contribution is now 12% of Rs.15,000 = Rs.1,800 i.e. Rs.1,800 from the employee and Rs.1,800 from the employer. (It was earlier at 12% of Rs.6,500 p.m. = Rs.780).
While the entire contribution from an employee is directed towards his/her provident fund, a part of the employer’s contribution goes towards pension and insurance and also administration costs in the following proportions
12% of salary (basic + DA) total contribution = 8.33% to EPS and 3.67% to EPF
Additionally, 0.5% to EDLI; 1.1% to EPF administration costs and 0.01% to EDLI administration costs. This means the employer’s total contribution is 13.61%
EPF Interest Rate History
|Year/Period||Interest Rate (p.a.)|
|1952 – 1955||3.00%|
|1955 – 1957||3.50%|
|1957 – 1963||3.75%|
|1963 – 1964||4.00%|
|1964 – 1965||4.25%|
|1965 – 1966||4.50%|
|1966 – 1967||4.75%|
|1967 – 1968||5.00%|
|1968 – 1969||5.25%|
|1969 – 1970||5.50%|
|1970 – 1971||5.70%|
|1971 – 1972||5.80%|
|1972 – 1974||6.00%|
|1974 – 1975||6.50%|
|1975 – 1976||7.00%|
|1976 – 1977||7.50%|
|1977 – 1978||8.00%|
|1978 – 1979||8.50%|
|1979 – 1981||8.25%|
|1981 – 1982||8.50%|
|1982 – 1983||8.75%|
|1983 – 1984||9.15%|
|1984 – 1985||9.90%|
|1985 – 1986||10.15%|
|1986 – 1987||11.00%|
|1987 – 1988||11.50%|
|1988 – 1989||11.80%|
|1989 – 2000||12.00%|
|2000 – 2001||12.00% – till June 2001
11.00% – From July 2001
|2001 – 2004||9.50%|
|2004 – 2005||9.50%|
|2005 – 2010||8.50%|
|2010 – 2011||9.50%|
|2011 – 2012||8.25%|
|2012 – 2013||8.50%|
|2013 – 2015||8.75%|
|2015 – 2016||8.8%|
|2016 – 2017||8.65%|
List Of PF Forms
Form 1 Para 27 -> Exemption from Operation of the Scheme
Form 2 Para 33 & 61(1) -> Nomination and Declaration Form for Un-exempted/Exempted Establishment
Form 3 Paras 35 & 42 -> Contribution Cards for unexempted establishments
Form 4 Para 35 and 42 -> Contribution card for employees other than monthly paid employees
Form 10 paragraph 36(2)(a) & (b) -> Return of Members leaving service during the month
Form 11 Para 34 -> Declaration by a person taking up employment in organization with EPF
Form 20 -> Form for claiming PF of a minor/deceased member
Form 19 Para 72(5) -> Form for claiming PF dues
Form 31 -> Application for Advance
Form 10 -> CPF withdrawal form for old citizens- Pension Scheme
Form 10D ->Fund Pension Scheme Application Form
Form CCF -> EPF Composite Claim Form for withdrawal (SOURCE)
How to Transfer EPF Account?
Suppose You are working in One Organization and You left that Organization and Joined New one. At this Time Because of EPF Service, You don’t Need to Open New EPF Account. You can Simply Provide your UAN Number to New Organization and New Employer will Start Transfering your PF Balance through Provided UAN Number.
In this Matter, You Simply Need to do one Process that is Transferring your EPF Account.
Basically, there are Two Methods to Transfer EPF Account 1) Online and 2) Offline.
Transfer EPF Account Online
To transfer EPF Account You need Internet Access. The Process is Easy. Kindly Follow given Steps.
- First Go to the EPFO Portal Website -> http://www.epfindia.com
- In the Portal “FOR EMPLOYEES” Option Listed in Our Services Window.
- After Clicking on the Link New window will Open. In the New, Window choose the option “Online Transfer Claim Portal” (OTCP) or Simply Click Here (This Link Will Redirect you to EPFO SERVICE Portal)
- If You have registered with the site, log-in with the member id; if not register to get log-in details.
- Logging-in entails filling in the document type and number and mobile number (same as the log-in details for the member portals). This will lead to the Online Transfer Claim Application.
- In the Next Step, You have to Request for account transfer under the ‘Claim’ option in the menu.
- Now In that Part A, Part B and Part C of Form 13 – Request for Transfer of Account Form will be displayed.
- Part A – fill in personal details viz. name, mobile number, email id, bank account number and IFS code.
- Part B – fill in details of the old PF account viz. The PF account number and EPF office. Proceed to obtain the following details viz. the employee’s old establishment name and address, the employee’s name, date of birth, joining and exit date, father’s/spouse’s name and the relevant EPF office where the account was held. If the date of birth is not displayed, ensure this detail is updated.
- Part C – similar to Part B, except this pertains to the current PF account details.
- Choose to have the form/claim attested by the current or old employer.
- Get the Pin and at the End accept the declaration. Finally, enter the pin as sent to the provided mobile number to submit the online claim/form for transfer of PF account.
- Print the filled in form, sign, and submit it to the chosen employer for attestation. The chosen employer verifies the form in the portal. Once verified, the EPFO will proceed to transfer the account
Transfer EPF Account offline
In Transferring EPF Account Offline You Need to Fill up Some Forms and Have to Submit the Form at EPF Office. Follow the Procedure to Transfer Your EPF Account Offline.
- In the First Step, an Applicant will have to fill and submit a duly attested Form 13 to his/her past or present employer. The form can be attested by either the past of present employer.
- Then submitted that Form to the regional EPF office relevant to the attesting employer. Along with the Form You need to Provide your Identification Proof like Aadhar Card, PAN Card or Driving Licence Proof. PF contributions from the old account will be transferred to a Trust.
- The old employer will have to submit Annexure K to the relevant Regional Provident Fund Commissioner (RPFC) or Regional EPF office.
- In many cases, though, Annexure K is not submitted which means money cannot be credited by the Trust to the new account. There is no way to track this which led to a large number of transfer cases being stalled. For this reason, claim forms and Annexure K were then digitized to facilitate online EPF transfers.
In Conclusion of this Process, Employee is Secure in Online EPF Account Transfer because He/She can Track the Details while in Offline Transfer Employee Can’t able to Track the Details.
In the Upcoming Post, We will Discuss EPFO Login, UAN Number, UAN Status, UAN Activation and EPFO Balance Check Status.