What is EPF?

While government employees enjoy the Social Security of availing pension, people working in private corporations don't have this option. An employee Provident Fund is a retirement pension scheme that's meant for all salaried staff. The workers Provident Fund Organization of India (EFPO) maintains and oversees the EPF. All corporations that have more than twenty staff are mandated by law to register with the EFPO. The EPF works as a savings scheme for workers wherever a fraction of their remuneration each month is saved. This fund may be availed after you retire or after you are unable to work. This scheme will place your mind comfortable as you may not got to depend upon anyone for your expenses after you no longer work.

 

Benefits of EPF

1. You'll be able to nominate a loved one as your nominee, so they will avail the pension or the corpus within the event of your death

 

2. You get a hard and fast financial gain once you retire, while not having to work

 

3. EPF permits you to take a position more than the basic 12% of your remuneration each month under the provision of Volunteer provident fund

 

4. You furthermore may get insurance cover under EPF

 

5. EPF isn't necessary, though it's powerfully counseled that you simply be part of

 

6. After you withdraw EPF (after 60), you'll be able to avail each EPS and EPF

 

7. You'll be able to withdraw early just in case of an emergency under bound outlined circumstances like job loss, wedding, loan repayment etc

 

8. There's no need to withdraw or open a new EPF as you'll be able to link the previous one and therefore the new one

 

 

What do you want to know about EPF contributions?

• EPF contributions aren't alone taken from your remuneration. Your employer is additionally absolute to build equal contributions to your EPF account on a monthly basis.

 

• Employees should link their Aadhaar number and checking account with their UAN.

 

• You will nominate anybody for your EPF account. In the case of the account holder’s death, the account balance are paid to the nominee.

 

• You will change the nominee by submitting form 2 to your company’s finance department or to the EPFO department.

 

• About 8.33% of your employer’s monthly contribution (up to Rs.1,250) are redirected to the employee Pension scheme (EPS). This can assist you get a monthly pension once you retire and fulfil certain conditions.

 

• No interest are accumulated on the contributions created towards EPS account.

 

• If you opt to quit your employment and withdraw the balance from your EPF account once and for all, you may solely be able to withdraw some of it supported the aim of withdrawal. a number of these valid functions are unemployment, retirement, purchase of land, purchase/construct a house, renovating a house, wedding, education, repaying a home loan, and medical reasons.

 

• In the case of unemployment, withdrawal of EPF may be created before fifty eight years older, with 100% withdrawal once 2 months of resigning from employment. An worker may also withdraw 75% of the EPF balance once one month of resigning from employment, with the balance 25% transferable to a new employer.

 

• If you're a retired person and have worked consecutively for the last ten years, you'll be able to withdraw 100% of the EPS account balance.

 

• In case, you've got not consecutively worked for the last ten years, you'll be able to solely withdraw cash from EPS account in step with the slabs supported your last drawn remuneration as mentioned within the Table ‘D’ below:

 

Number of Years of Service	Eligible Portion of EPS Withdrawal*
1	1.02
2	1.99
3	2.98
4	3.99
5	5.02
6	6.07
7	7.13
8	8.22
9	9.33

 

*Effective from ten June 2008 as declared by the EPFO web site. No matter the last drawn remuneration, the maximum remuneration thought of for this calculation is Rs.15,000. Therefore, if your last drawn remuneration is Rs.42,000 and you've got worked for eight years consecutively, the EPS quantity you'll be able to withdraw is: Rs.15,000*8.22 = Rs.1,23,300

 

• You don’t have to withdraw EPF contributions or close the account after you switch jobs. simply offer your UAN to the new employer and that’s it. The new PF number created by your new employer can still be under your existing UAN.

 

• You should manually transfer the PF account balance from your previous employer to the PF account created by your new employer by filling form 13. As an alternative, you'll be able to fill form 11 so the PF contributions are automatically transferred to the new account.

 

• If your basic remuneration per month is higher than Rs.15,000, you've got the liberty to opt-out of EPF.

 

• You will check your EPF account balance, request for transfer, check claim status, request to withdraw, and lift grievance on-line using the EPFO portal or maybe on the Umang app.

 

 

How to Check PF balance?

Step 1. go to the govt EPF portal

 

Step 2. choose the location (state, regional branch workplace) of your PF office

 

Step 3.Complete the online form complete together with your personal data and therefore the EPFO account number specified in your record

 

Step 4. Submit the form once validating the small print provided

 

Step 5. If all of your records are in place, you may be sent the EPF balance as SMS to your registered mobile

 

Rate of Interest in EPF

The money accumulated within the government EPF trust offers compounded interest. At present, the charge per unit is 8.65%. EPF is under the horizon of a Central Board of Trustees and therefore the government, who decide the charge per unit. They review the charge per unit annually. Opening balance for 2018 – 2017 balance + monthly contributions in 2018+ interest.

 

Variations in EPF Interest Rates up to now

Applicable Financial Year	Interest Rate (per annum)
2019-2020	8.5%
2018-2019	8.65%
2017-2018	8.55%
2016-2017	8.65%
2015-2016	8.8%
2013-2015	8.75%
2012-2013	8.5%
2011-2012	8.25%
2010-2011	9.5%
2005-2010	8.5%
2004-2005	9.5% (Interest: 9% + Golden Jubilee Bonus Interest: 0.5%)
2001-2004	9.5%
2000-2001	April-June 2001: 12% and July 2001 Onwards: 11% (On the monthly running balance)
1989-2000	12%
1988-1987	11.8%
1987-1988	11.5%
1986-1987	11%
1985-1986	10.15%
1984-1985	9.9%
1983-1984	9.15%
1982-1983	8.75%
1981-1982	8.5%
1979-1981	8.25%
1978-1979	8.25% + Bonus: 0.5% (Only for members who did not withdraw money from their EPF account during 1976-1977 and 1977-1978)
1977-1978	8%
1976-1977	7.5%
1975-1976	7%
1974-1975	6.5%
1972-1974	6%
1971-1972	5.8%
1970-1971	5.7%
1969-1970	5.5%
1968-1969	5.25%
1967-1968	5%
1966-1967	4.75%
1965-1966	4.5%
1963-1964	4.25%
1957-1963	4%
1955-1957	3.5%
1952-1955	3%