Madhu.T.K
Industrial Relations And Labour Laws
Kannanmv
Hr & Administration
AK CHANDOK
Epf & Esi Matters
Glidor
Hr Consultant
Pkjain62
Service As Dgm-hr/legal
Manasi.c.shah
Payroll And Labour Law Consultancy
Singaporean
Software Engineer
Deokardeepakawade
Sr. Process Executive
Rach23
E-marketing Executive
+2 Others

Thread Started by #Singaporean

Hi all,
Recently, I received my PF slip and I found that 3.67% basic only contributed by Employer towards my account. When I asked my colleagues, they said that remaining 8.33% will be deposited in EPF(pension fund) and this will not reflected in PF slips.
Can anyone please make me clear, What is the difference between PF and EPF? How can we know our balance of EPF? In what criteria, we can withdraw this money?
Thanks in advance!
7th November 2012 From India, Bangalore
PF and EPF are terms used to denote the same, Employees Provident Fund. Employees Provident Fund has three schemes, viz, Provident Fund, Pension Fund and Employees Deposit Linked Insurance. Towards Provident Fund the employees share of 12% (as also whatever his voluntary contributions is) and 3.67% of the employer's contribution are credited. The remaining portion of 8.33% of employer's share of contribution is credited to the Pension Fund. Since the Pension fund is dealt with separately with a contribution by the Central Govt to it, the balance is not reflected in the contribution card issued to the members. The Contribution statement, therefore, contains only the status of Provident Fund which will include employees share, 3.67% of employer's share and interest for the year.

Provident Fund can be withdrawn when an employee leaves the organisation or on his attaining the age of 58. Pension fund can be withdrawn subject to conditions if the employee has not put in 10 years of service. If he has put in more than 10 years (or at least 9 years and 6 months) he cannot withdraw this fund but will be eligible to get pension on attaining 58 years of age. Reduced pension is also available after 50 years of age.

Regards,

Madhu.T.K
7th November 2012 From India, Kannur
Employee share of 12% and Employer Share of 3.67% is deposited in EPF (Provident Fund)
Employer Share of 8.33% is deposited in EPS (Pension Fund)
PF Account Slip does not include EPS Fund amount.
Hope this resolves your query.
7th November 2012 From India, Thana
Dear Singaporean,

As indicated by Mr.Madhu EPF/ PF contributions are only reflected in the Form 23 and it is maintained by the respective PF offices in the member's account individually. You can simulate this to a savings bank account account held in a Financial institution.

However, unlike the EPF/ PF the pension contribution of 8.33% is maintained as a corpus fund and is not maintained against the member's account. You can simulate this to income tax remittance to the Government of India. You do not get any returns from IT (only refunds if any), but in case of Pension fund the member gets Pension on attaining superannuation if the member is alive or if the member is dead, his nominee gets the benefit.

The employee can choose to withdraw the amount contributed by him to the Pension fund (Corpus) by submitting Form 10C when he joins a new establishment which does not have PF coverage. However, if the employee has completed 10 years of service then he does not have the option of withdrawing the amount from the Pension fund. The PF office gives a Scheme certificate that contains relevant particulars relating to the period of service. This certificate can be produced by the member in the event he joins an establishment subsequently that extends PF coverage or if he continues to serve in an establishment that does not extend PF coverage then he has the option to surrender the scheme certificate to the PF office and opt for Pension once he attains superannuation (58 Years). He may also opt for Pension after attaining 50 years, but the Pension amount will be reduced proportionately.

The Pension calculation is made based on the last drawn service/ 70 X Number of years of completed service. In case the employee possesses a scheme certificate then the service indicated in the scheme certificate is added to the service rendered by the employee in the subsequent establishment (where he was covered under PF) and then the pension amount is worked out.

At the time of settling the Pension account the member is given the option to opt for return of capital (a lumpsum amount is paid) and the remaining is paid as pension to the employee. If he does not exercise the option then pension amount due to him is calculated and paid.

In case of employees who have been member of PF prior to 15th November 1996, the pension is calculated in two folds. One prior to 15th November 1996 and the other after this date as per calculation indicated above. This is because the Pension rules were amended on that date.

Trust the matter is clear

M.V.KANNAN
8th November 2012 From India, Madras
Dear mr kannan, you have given a very good explanation about epf and eps. There is one small correction with respect to date which is 15-11-1995 and not 15-11-96. Thank you
9th November 2012 From India, Coimbatore
The position as stated above is correct but in my view, the option for Return of Capital has been withdrawn . AK Chandok RPFC (Retd.) www.akchandok.com 09988021715
9th November 2012 From India, Chandigarh
Dear S.Ganapathy & Mr.A.K.Chandok, Thank you for the correction. In fact I was of the opinion the option of return of capital is still in vogue. M.V.KANNAN
9th November 2012 From India, Madras
Yes, there are three major amendments took placed in the EPS,1995 the detais there of are as under-

The government of India had issued a Gazette notification (GSR Nos. 688 (E) dated September 26, 2008) incorporating several amendments they are:

1. Amendment to Para 12 (7).

2. Deletion of Para 12 A.

3. Deletion of Para 13.

These amendments have far reaching consequences by way of substantially altering the benefit package of the EPS ’95 to the detriment of the interests of workers.

The first amendment to Para 12 (7) has increased the rate by which the amount of pension is to be reduced in the case of early pension (availed by those who have completed 50 years of age but are below the age of 58) from 3 per cent to 4 per cent. This will result in immediate reduction in the quantum of pension.

If, for example, the eligible pension on completing 58 years of age is Rs 1000 per month and the employee has to exit the job on completion of 50 years of age, either due to resignation, retrenchment, illness or otherwise, he would get an early pension applying a reduction of 3 per cent per year i.e. 24 per cent reduced from the monthly pension and would get Rs 760 per month. This reduction rate has now been enhanced to 4 per cent and in this case the reduction would be 32 per cent or the monthly pension would be Rs 680 only.

The second amendment (deletion of Para 12 A) is altogether eliminating the option available at present for commutation of pension. The existing provision enables a member to commute up to a maximum of one-third of his pension so as to receive hundred times the monthly pension. This facility was made available after three years of commencement of the Pension Scheme i.e. from November 16, 1998 onwards.

If, for example, the eligible pension is Rs 1000 per month and the pensioner opts to commute one-third of his monthly pension the commuted value will be equal to 1/3 x 1000 x 100 = Rs 33,333 and the same will be paid at the time of exercise of option for commutation. The balance pension payable on monthly basis will be Rs 667.

This option for commutation stands totally abolished now with this amendment. The pensioner is thus denied the opportunity to commute one-third of his monthly pension and avail a lump sum amount to meet exigencies like marriage in the family, death of kin, medical expenses etc. The concept of commutation is a universal component of any pension scheme and this has been done away with arbitrarily.

The third amendment (deletion of Para 13) eliminates the existing option available to a member eligible for pension to draw reduced pension and avail a return of capital under any of the three alternatives provided. Unlike the option for commutation, the option for return of capital must be exercised at the time of applying for pension itself.

The three alternatives available were:

i. A pensioner during his lifetime can opt to avail a revised pension of 90 per cent of original pension with return of capital equal to 100 times the original monthly pension payable to the nominee on death of the member.

ii. A pensioner during his lifetime can opt to avail a revised pension of 90 per cent of original monthly pension; the widow of the pensioner can opt to avail a revised pension of 80 per cent of original monthly pension on the death of her husband; the nominee of the pensioner can also exercise this option on the remarriage of the widow; In these case the return of capital will be equal to 90 times the original monthly pension.

iii. A pensioner can opt to avail a fixed pension for a period of 20 years notwithstanding whether the member lives for that period or not. Under this option the member can avail a 87.5 per cent of original monthly pension for 20 years and at the end of 20 years, avail return of capital equal to 100 times the original monthly pension.

All these three alternative options for availing return of capital have now been totally eliminated with these amendments.

pkjain
12th November 2012 From India, Delhi
Hi All,
I know I am reviving a really old thread here, and hope I can still get a response.
If as mentioned by Manasi, the below is true
"Employee share of 12% and Employer Share of 3.67% is deposited in EPF (Provident Fund)
Employer Share of 8.33% is deposited in EPS (Pension Fund)
PF Account Slip does not include EPS Fund amount."
Then what proof do we hold that the organization has actually been depositing 8.33% of the overall 12% into the EPS (Employee Pension Fund)?
Is there some sort of documentation that we should request from the organization in order to understand whether this is being done?
Regards,
Mithran
18th December 2014 From United States
Dear Mithran Now, if you have UAN (Universal Account Number) you can create your account and login - UAN portal of EPFO site, which also show the EPS contribution as well as EPF contribution. PK
29th December 2014 From India, Delhi
Hi, This reference of Pension Fund under EPF. More details how to withdrawal pension fund. Can we withdrawal earlier. Regards, Deepa
21st August 2015 From India, Nashik
Yes, I do have the same question what proof do we hold that the organization has actually been depositing 8.33% of the overall 12% into the EPS
13th January 2016 From India, Hyderabad
As mentioned by PK JAIN, where can we check the EPS contribution ? I have EPFO account, where only EPF contribution is shown
13th January 2016 From India, Hyderabad
To check the contribution, download the passbook through the portal , where you can see everything UAN Member Portal
27th October 2016
#Anonymous
I left my previous company in India 7 months ago and now I am working in gulf country since 5 months, I have UAN number but no adhar card, pls guide me how I withdraw my pf
23rd February 2017 From Saudi Arabia, Jeddah
Both are same..
PF - provident fund
EPF - Employee provident fund
24th August 2017 From India, Jalalpur
Yes, both the PF (Provident Fund) and EPF (Employee Provident Fund) are same. Generally people understand that their are two types of provident fund and include the PPF and EPF its kind, but the fact is their is only one provident fund that also called Employee Provident Fund.
>>If we talk about PPF (Public Provident Fund) then its a kind of account that is offered by Banks and financial institutions. On the other hand PF or EPF is the facility that is benefited by your employer.
>>The minimum amount to open PPF account is Rs.500, while EPF account will be opened by your employer when your salary is below Rs. 15,000.
>>It should be noted that, a time ago, EPF account was not mandated for individuals whose salary is 15k or below 15k, but from saving perspective govt made it mandatory.
>>In PPF the deposit is same as EPF (on monthly basis), the only difference the amount will not be deducted from your salary. You will need out to pay it on your own.
>>In EPF a stipulated amount id deducted from employee's salary and it then added to your EPF account which you can withdrawal at least 10 years later. This amount is decided by the government.
There are numbers of things that define the Employee Provident Fund, even these all can not be described here because EPF is a very large field of investment in itself. If you want to know more about EPF, you may read this: https://www.bajajfinserv.in/insights...know-about-epf
19th December 2018 From India
Both PF and EPF are same i.e. Employee Provident Fund. The deduction (EPS deduction) about which you are saying is actually a part of EPF. Basically there are total 6 contribution amount that got deducted in a certain percentage from your salary. These are as following:
1- 12% of the basic salary + DA + RA
2- 3.67% by your employer
3- 8.33% in EPS (Employees' Pension Scheme)
4- 0.5% in EDLI (Employees Deposit Linked Insurance Scheme)
5- 0.1% as EDLI charges
6- 0.65% Administrative Charges
You may read more about employer contribution to pf in detail at: https://www.bajajfinserv.in/insights...f-contribution
17th January 2019 From India
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