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Dear All,

I want to share few things related to EPF which few might know but other's might not be aware of. Hope this would help you be more clear.

1:You can also nominate someone for your EPF- The nominee would be contacted at the time of your death only & handed over the PF Money. If there's not nomination there might be lot of problems in claiming money. One can change or add nominee with form 2 (PFA).

2: You can get Pension in PF: EPF is divided in EPS & EPF where EPF gets 12% contribution from employee + 3.67% contribution of basic from employers. The rest 8.33% (subject to max INR 541) share from employers side goes to the EPS. But there are certain conditions for claim like:

a) can be claimed only after completing 58yrs

b) must have completed at-least 10yrs of service & EPF is not withdrawn (can be transferred).

c) Per month maximum pension cannot exceed Rs.3250.

d) It's a lifelong pension & upon death given to the nominee.

3: No interest is given on EPS (pension part): The compound interest is only paid on the PF part (12%-e/ee share + 3.67% e/er share). The 8.33% which goes to the Pension scheme does not gets the interest but can be withdrawn along-with the PF.

4: Getting 100% EPF might not be possible: The division goes like the employee gets 100% share that's deposited in the PF share i.e-(12%+3.67%) but for EPS there a separate criteria if you have not complete 10yrs of service. For each completed year one is bound to get the n times salary of the last wage drawn subject to max. Rs.6500 pm. Please see the EPS Table D as attachment. The table would be for 9yrs only since after completion of 10yrs you would be liable for the EPS. E.g-If your last drawn salary is 30,000 & have completed 7.5yrs of service then the EPS given would be 6500*7.54= 49010/-only

5: VPF: Employees can increase their share of PF but employers are liable only for 12% only. You're bound to get Compound interest on the increased share of PF as well. Once the PF share is increased by the E/ee cannot be revoked & hence has to continue paying the same amount till the time in the same organization.

6: Withdrawal During Service is Illegal: Not many are aware of this & neither PF department under normal conditions tracks this but the withdrawal of your PF legally can only be done if you do not have job & it's been more than 2 months. As per the EPF rules & records it's illegal to withdraw the EPF if you're serving.

7: Can opt out of EPF: Yes it's possible! If the basic is more than Rs.6500 then one can opt out of EPF and if & only if the employee has never ever been a part of EPF (so basically it applies for newbies only). The employee can tell employer that they do not want the PF to be deducted & have to fill the Form 11 & submit it duly with the employer. Such employee would get all the salary in hand but here the employer is not bound to give you the share that has to be submitted by them to your EPF.

8: Your EPF gives you some life insurance too : A small life cover is provided through EPF as the 0.5% of 6500 from the employers share goes to Employees Deposit Linked Insurance. Though a peanut amount of Rs.60.000 yet everything counts.

9: PF can be drawn at special occasions while Serving: The occasions & the conditions along with are as follows:

a) Marriage or education of self, children or siblings- must have completed min 7yrs of service; maximum amount you can draw is 50% of your contribution; can avail of it three times in your working life; will have to submit the wedding invite or a certified copy of the fee payable.

b) Medical treatment for Self or family (spouse, children, dependent parents) -For major surgical operations or for TB, leprosy, paralysis, cancer, mental or heart ailments; maximum amount can be drawn is 6 times your salary; must show proof of hospitalization for one month or more with leave certificate for that period from your employer.

c) Repay a housing loan for a house in the name of self, spouse or owned jointly: should have completed at least 10 years of service; eligible to withdraw an amount that is up to 36 times your wages.

d) Alterations/repairs to an existing home for house in the name of self, spouse or jointly: need a minimum service of 5 years (10 years for repairs) after the house was built/bought; can draw up to 12 times the wages but only once.

e) Construction or purchase of house or flat/site or plot for self or spouse or joint ownership: should have completed at least 5 years of service; maximum amount you can avail of is 36 times your wages. To buy a site or plot, the amount is 24 times your salary; Can avail it just once during the entire service.

I welcome all if there's anything to be added or edited here so that proper & accurate information could be provided to all.

From India, Chandigarh
Attached Files (Download Requires Membership)
File Type: png EPS-table-D-EPF.png (8.9 KB, 211 views)
Attached Files (Download Requires Membership)
File Type: pdf form2.pdf (16.2 KB, 188 views)


From India, Chennai
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