Employees' Provident Fund (EPF) Benefits
Employees' Provident Fund (EPF) provides three benefits: a lump sum gain at the time of retirement, a monthly pension after retirement, and insurance cover during employment. However, you may enjoy all the benefits only if your employer deposits the amount deducted every month from your salary into the designated PF Trust.
Checking EPF Deposits
To check if all the amounts are deposited on time, you have to visit the EPFO site (https://passbook.epfindia.gov.in/Mem...Book/Login.jsp) and log in with your UAN. Once logged in, you may go through your EPF passbooks available under different links for all the previous employers, unless you have transferred or withdrawn the previous PF amounts. You may also download the passbooks periodically to maintain your vigil.
EPF Implementation
Although the PF amount is deducted monthly from the salary of almost all private sector employees, the implementation of EPF is compulsory for private sector organizations having 20 or more employees. The scheme is compulsory for private sector employees with a monthly basic salary of Rs 15,000 (the figure is revised periodically) or less and optional for employees earning more. The amount of basic salary includes basic wages, retaining allowance, and dearness allowance (DA), including the cash value of any food concession.
Contribution Details
Out of the basic salary, 12 percent is deducted every month as the employee's PF contribution, while the employer makes a matching contribution of 12 percent, and the Central government also contributes 1.16 percent of eligible basic salary. Out of the total deduction of 24 percent (12 percent employee contribution plus 12 percent employer contribution), 15.67 percent goes to EPF, and 8.33 percent (from the employer's contribution part) goes to EPS. Other outgoes include 0.5 percent for employees' deposit linked insurance (EDLI), 0.85 percent for EPF administrative charges, and 0.01 percent for EDLI administration charges.
Passbook Reflections
The passbook will reflect figures of an employee's entire contribution under EPF. The employer's 12 percent matching contribution will be reflected partly under EPF (3.67 percent) and the remaining part to EPS (8.33 percent). Withdrawals, if any, and the interests credited on the contributions will also be reflected in the passbook.
Addressing Non-Compliance
In case you find that the employer has not deposited the PF amount after deducting it from your salary, or deposited it late, or failed to deposit the matching contribution, you may approach the Regional Provident Fund Commissioner (RPFC) of the region your office is situated in to report the matter or file an FIR against them. As per the EPFO guidelines, the employer, apart from depositing the contribution amounts, will also have to deposit interest at 10 percent per year for a delay between 2 and 4 months, 15 percent per year for delay between 4 and 6 months, and 25 percent per year for delay over six months.
From India, Ghaziabad
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256Employees' Provident Fund (EPF) provides three benefits: a lump sum gain at the time of retirement, a monthly pension after retirement, and insurance cover during employment. However, you may enjoy all the benefits only if your employer deposits the amount deducted every month from your salary into the designated PF Trust.
Checking EPF Deposits
To check if all the amounts are deposited on time, you have to visit the EPFO site (https://passbook.epfindia.gov.in/Mem...Book/Login.jsp) and log in with your UAN. Once logged in, you may go through your EPF passbooks available under different links for all the previous employers, unless you have transferred or withdrawn the previous PF amounts. You may also download the passbooks periodically to maintain your vigil.
EPF Implementation
Although the PF amount is deducted monthly from the salary of almost all private sector employees, the implementation of EPF is compulsory for private sector organizations having 20 or more employees. The scheme is compulsory for private sector employees with a monthly basic salary of Rs 15,000 (the figure is revised periodically) or less and optional for employees earning more. The amount of basic salary includes basic wages, retaining allowance, and dearness allowance (DA), including the cash value of any food concession.
Contribution Details
Out of the basic salary, 12 percent is deducted every month as the employee's PF contribution, while the employer makes a matching contribution of 12 percent, and the Central government also contributes 1.16 percent of eligible basic salary. Out of the total deduction of 24 percent (12 percent employee contribution plus 12 percent employer contribution), 15.67 percent goes to EPF, and 8.33 percent (from the employer's contribution part) goes to EPS. Other outgoes include 0.5 percent for employees' deposit linked insurance (EDLI), 0.85 percent for EPF administrative charges, and 0.01 percent for EDLI administration charges.
Passbook Reflections
The passbook will reflect figures of an employee's entire contribution under EPF. The employer's 12 percent matching contribution will be reflected partly under EPF (3.67 percent) and the remaining part to EPS (8.33 percent). Withdrawals, if any, and the interests credited on the contributions will also be reflected in the passbook.
Addressing Non-Compliance
In case you find that the employer has not deposited the PF amount after deducting it from your salary, or deposited it late, or failed to deposit the matching contribution, you may approach the Regional Provident Fund Commissioner (RPFC) of the region your office is situated in to report the matter or file an FIR against them. As per the EPFO guidelines, the employer, apart from depositing the contribution amounts, will also have to deposit interest at 10 percent per year for a delay between 2 and 4 months, 15 percent per year for delay between 4 and 6 months, and 25 percent per year for delay over six months.
From India, Ghaziabad
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Nominations To EPF Account Can Be Added Online: Need Of A Nomination
EPF account is a critical savings account for retirement planning. The interest and contribution will provide healthy growth for your money, making it a good source of income in old age.
Nomination:
The nomination is the process of naming an individual(s) as a nominee or administrator to receive his or her EPF savings upon the member’s death.
Why do you need to make a nomination:
It is always important to nominate a person to your EPF account. Only the nominated person(s) can withdraw your EPF savings in the event of death. If you do not make any nomination for your EPF savings, your dependents might encounter difficulties when staking their claim on your EPF savings.
The Employees’ Provident Fund Organisation (EPFO) launched an e-nomination facility for EPF account holders. In a circular dated 12 September, the fund manager stated that the facility can be availed by members who have linked their Aadhaar and verified it on its “member sewa portal.”
You will need to log into your account on the Sewa portal and check if your UAN (Universal Account Number) is activated to avail the facility. The service also requires you to have your photograph available on the portal.
Members can only nominate his/her family members as per EPFO rules. However, if the member does not have a family, they can nominate only one person. This nomination will become invalid after the member acquires a family.
For those who haven’t nominated anyone, a message will pop up on the screen to file their e-nomination when they log into the portal. The list of members that have not filed nominations is also displayed to the employers on their login page.
Thanks & Regards,
From,
Sumit Kumar Saxena
From India, Ghaziabad
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EPF account is a critical savings account for retirement planning. The interest and contribution will provide healthy growth for your money, making it a good source of income in old age.
Nomination:
The nomination is the process of naming an individual(s) as a nominee or administrator to receive his or her EPF savings upon the member’s death.
Why do you need to make a nomination:
It is always important to nominate a person to your EPF account. Only the nominated person(s) can withdraw your EPF savings in the event of death. If you do not make any nomination for your EPF savings, your dependents might encounter difficulties when staking their claim on your EPF savings.
The Employees’ Provident Fund Organisation (EPFO) launched an e-nomination facility for EPF account holders. In a circular dated 12 September, the fund manager stated that the facility can be availed by members who have linked their Aadhaar and verified it on its “member sewa portal.”
You will need to log into your account on the Sewa portal and check if your UAN (Universal Account Number) is activated to avail the facility. The service also requires you to have your photograph available on the portal.
Members can only nominate his/her family members as per EPFO rules. However, if the member does not have a family, they can nominate only one person. This nomination will become invalid after the member acquires a family.
For those who haven’t nominated anyone, a message will pop up on the screen to file their e-nomination when they log into the portal. The list of members that have not filed nominations is also displayed to the employers on their login page.
Thanks & Regards,
From,
Sumit Kumar Saxena
From India, Ghaziabad
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