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your EPF passbooks available under different links for all the previous employers, unless you have transferred or withdrawn the previous PF amounts.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.
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.