Employee Provident Fund (EPF) Overview
The Employee Provident Fund (EPF) is one of the most common forms of investment among salaried individuals. A small part of your salary is invested in EPF, and that amount is matched by your employer every month. The employees' and employers' contributions are maintained by the Employees Provident Fund Organisation (EPFO), under the administrative control of the Ministry of Labour and Employment, Government of India. Here’s all you need to know about the Employee Provident Fund:
Equity Investment
Since the EPF is invested in fixed income alone, it is expected to offer a good rate of return when invested in equities. The EPFO has also started investing in the stock market through exchange-traded funds. The government has approved for 5-15% of EPF money to be invested in the volatile stock market.
Nomination Process
Did you know that you can assign a nominee for the amount of provident fund you’ve been investing every month? The nominee listed in your account will be contacted at the time of death and handed over all your money. The Form 2 provided by the EPFO department will allow you to nominate and update nomination changes.
Employee Pension Scheme (EPS)
12% of your salary every month goes into your provident fund. However, out of the money your employer matches, 8.33% of it or a maximum of Rs 1,250 goes into your provident fund, and the rest into your pension scheme. You are liable for a pension only if you’ve survived 9.5 years of work life and your EPF has been transferred when you changed jobs.
Withdrawal Rules
Did you know that it’s illegal to withdraw your EPF amount when you’re switching jobs? Yes, you can only withdraw your provident fund money if you don’t have a job at the time of withdrawal. You are only supposed to transfer your EPF account when you are changing jobs.
Opting Out of EPF
If your basic salary is more than Rs 15,000, then you have an option to opt out of the employee provident fund. However, you will have to make this choice at the start of your job. If you’ve been a part of the EPFO family even once, then you don’t get the choice of opting out.
Right to Information (RTI)
If there is any kind of information you would like to know about the employee provident fund, all you have to do is access your right to information. You can file an RTI application for any issues regarding your provident fund, be it transfer, withdrawal, or balance enquiry.
From India, Ahmadabad
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34The Employee Provident Fund (EPF) is one of the most common forms of investment among salaried individuals. A small part of your salary is invested in EPF, and that amount is matched by your employer every month. The employees' and employers' contributions are maintained by the Employees Provident Fund Organisation (EPFO), under the administrative control of the Ministry of Labour and Employment, Government of India. Here’s all you need to know about the Employee Provident Fund:
Equity Investment
Since the EPF is invested in fixed income alone, it is expected to offer a good rate of return when invested in equities. The EPFO has also started investing in the stock market through exchange-traded funds. The government has approved for 5-15% of EPF money to be invested in the volatile stock market.
Nomination Process
Did you know that you can assign a nominee for the amount of provident fund you’ve been investing every month? The nominee listed in your account will be contacted at the time of death and handed over all your money. The Form 2 provided by the EPFO department will allow you to nominate and update nomination changes.
Employee Pension Scheme (EPS)
12% of your salary every month goes into your provident fund. However, out of the money your employer matches, 8.33% of it or a maximum of Rs 1,250 goes into your provident fund, and the rest into your pension scheme. You are liable for a pension only if you’ve survived 9.5 years of work life and your EPF has been transferred when you changed jobs.
Withdrawal Rules
Did you know that it’s illegal to withdraw your EPF amount when you’re switching jobs? Yes, you can only withdraw your provident fund money if you don’t have a job at the time of withdrawal. You are only supposed to transfer your EPF account when you are changing jobs.
Opting Out of EPF
If your basic salary is more than Rs 15,000, then you have an option to opt out of the employee provident fund. However, you will have to make this choice at the start of your job. If you’ve been a part of the EPFO family even once, then you don’t get the choice of opting out.
Right to Information (RTI)
If there is any kind of information you would like to know about the employee provident fund, all you have to do is access your right to information. You can file an RTI application for any issues regarding your provident fund, be it transfer, withdrawal, or balance enquiry.
From India, Ahmadabad
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Mr. Sagar,
8.33% goes to the pension fund, not into the provident fund.
From where did you get that 9.5 years?
It's incorrect. If he has worked for 9 years + 240 days (240 days are considered as continuous service as 1 year) or 10 years, then only he will be eligible for a pension.
Please check and reply if I am wrong.
From India, Hyderabad
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8.33% goes to the pension fund, not into the provident fund.
From where did you get that 9.5 years?
It's incorrect. If he has worked for 9 years + 240 days (240 days are considered as continuous service as 1 year) or 10 years, then only he will be eligible for a pension.
Please check and reply if I am wrong.
From India, Hyderabad
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From where did you accrue 9.5 years?
You are eligible for a pension after 10 years of continuous service. If you have worked for 9 years and 240 days, you are still eligible for a pension because 240 days are considered equivalent to 1 year of continuous service.
Please review and confirm if my understanding is incorrect.
From India, Hyderabad
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You are eligible for a pension after 10 years of continuous service. If you have worked for 9 years and 240 days, you are still eligible for a pension because 240 days are considered equivalent to 1 year of continuous service.
Please review and confirm if my understanding is incorrect.
From India, Hyderabad
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EPF-Provident-F und-Calculator. xlsx
BENEFITS UNDER EPF.ppt
Provident Fund - Excluded Employee - Definition.pdf