Struggling with PF Arrears? How Instalment Plans Could Be Your Solution

Dear friends, please refer to the attached circular dated 11.2.2014 on the subject.

Thanks

Hi, I worked with my previous company for 20 months. After leaving the company, I applied for EPF. I received my PF, but the amount was not as expected by me. So, I just wanted to know how this is possible.

Hi, I worked with my previous company for 20 months. After leaving the company, I applied for EPF. I received my PF, but the amount was not as expected by me. I just wanted to know how this is possible.

Understanding EPF and EPS Contributions

As per your post, I came to know that you have completed 20 years of service. You must be aware that in EPF, there should be two shares: one is the employee share, which is 12% of the basic salary, and the other is the employer share, which is also 12% but bifurcated into two components (3.67% in EPF and 8.33% in EPS - Employee Pension Scheme). Therefore, the actual figure comes out to be 12% + 3.67% = 15.67% for the EPF component and 8.33% for EPS - Employee Pension Scheme. The rate of interest is also on 15.67% instead of 8.33%.

I think you have received 15.67% + interest but not 8.33% for EPS, which is still within the pension scheme. After 10 years of contribution, the fund diverts to the pension scheme, which you can avail after completing the age of 58 years and/or after rendering 20 years of pensionable service or more. In this case, your pensionable service shall be increased by adding a weightage of 2 years. To avail the benefits, you first have to obtain a scheme certificate from the related EPFO, and only then can further actions be taken.

Regards,

Dear Sumit, You have very well laid out the benefits an employee receives once they leave employment. Only two points need to be mentioned herewith. First, the period of service in question here is 20 months and not 20 years. Secondly, the addition of two years of service is possible only under the provisions of the Employees' Pension Scheme 1995. Therefore, it will come into effect only for those employees who have rendered continuous service of 20 years after its launch on 16.11.1995, i.e., after 16.11.2015 passes by. It's important to note that no period of previous service (i.e., worked under the old Employees' Pension Scheme 1971) is counted for availing this additional two years of service.

Sincerely, Amit Kumar