EMPLOYEES PROVIDENT FUND
WHAT IS EMPLOYEES PROVIDENT FUND
The Employees' Provident Fund (EPF) is a retirement savings fund established in India under the Employees' Provident Fund Act of 1951. The Employees' Provident Fund Organization (EPFO) is in charge of its management. It is overseen by the Indian government's Ministry of Labour and Employment. The EPF provides social security to its members in the form of retirement benefits. It is a contributory fund, wherein both the employer and the employee contribute towards it. The employer contributes 12% of the employees’ basic salary and dearness allowance to the EPF account. The employee can also contribute up to 12% of the basic salary and dearness allowance. The EPF is a long-term savings mechanism and provides a lump sum amount to the employee upon retirement.
Universal Account Number (UAN)
The 12-digit Universal Account Number (UAN) is issued to members of the Employees' Provident Fund Organization (EPFO). This number is a unique identity for each EPFO member and is used as a single point of reference for all EPFO-related transactions. It remains the same for the lifetime of all EPFO members and allows them to keep track of their provident fund contributions, withdrawals, and other transactions. Additionally, the UAN can be used to access multiple accounts linked by a single UAN.
Objectives of EPF India
1. Provide social security to employees by providing financial support to them after retirement.
2. Ensure that the money contributed by the employee and employer are invested in the approved securities and are managed efficiently.
3. Promote and secure the interests of the subscribers through effective administration and investment of the funds in accordance with the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and Employees’ Provident Funds Scheme, 1952.
4. Provide a stable source of income to workers during their retirement, health, and other emergencies.
5. Increase the purchasing power of subscribers through additional benefits such as pension, insurance, and marginal relief.
6. Promote and ensure the welfare of the employees.
7. Develop a sound and secure financial system in India.
8. Collect, collate, and disseminate information to employers and employees in order to foster informed decision-making.
9. Provide guidance, advice, and assistance to employers and employees in relation to the EPF Scheme.
10. Administer and manage the funds in accordance with the Act, the Scheme, and other regulations.
Benefits of EPF
1. Retirement Savings: The EPF is a retirement savings account that allows employees to set aside a portion of their salary each month for their retirement years and earn interest on the same.
2. Tax Benefits: Contributions to the EPF are eligible for tax deductions under the Income Tax Act, 1961, up to an annual limit of ?1.50 lakhs. This makes the EPF a great way to save on taxes while also setting aside money for retirement.
3. Safety: The EPF is managed by the Employees Provident Fund Organization (EPFO), a government organization that provides a safe and secure environment for retirement savings.
4. Flexibility: Employees can choose to withdraw the entire amount or take out a partial withdrawal to meet their financial needs. They can also choose to transfer the balance to another EPF account in case of a job change.
5. Loan Facility: The EPF also provides a loan facility for employees to meet their financial needs. generally, the loan amount is limited to 50% of the entire amount accumulated.
6. Death Benefits: In the event of an employee's death, the EPF provides a lump sum amount to the family of the deceased. This amount
Eligibility to Apply for EPF Advance
Individuals who are active members of the Employees' Provident Fund (EPF) are eligible to apply for EPF advances. The individual must have completed a minimum of three months of membership in the Employees' Provident Fund. The individual must also be employed in an organization that is registered with the Employees' Provident Fund. The individual must have a valid EPF account number and must have submitted the required documents to the EPF office.
How to Transfer EPF Money
1. Log in to your Employees' Provident Fund (EPF) account on the EPFO website.
2. Select the "Transfer Claim" option.
3. Enter the information for the account from which you want to transfer money.
4. Enter the details of the account to which you want to transfer the money.
5. Enter the amount you want to transfer.
6. Submit the form and wait for the transfer to be completed.
7. You will receive a confirmation once the transfer is successful.
Withdrawal Protocols of EPF
1. The Employee Provident Fund (EPF) is a retirement savings scheme provided by the Government of India.
2. To withdraw funds from your EPF account, you must fill out the prescribed withdrawal form (Form 19) and submit it to the EPF office.
3. You must also attach the necessary documents such as your Aadhaar card, PAN card, EPF passbook, and bank account details.
4. Withdrawal of funds from the EPF account is allowed only in certain cases such as marriage, education, medical treatment, housing, or in case of unemployment.
5. The amount that can be withdrawn depends on your age and the number of years of contributions.
6. You must provide proof of the purpose of withdrawal.
7. In case of withdrawal before completion of five years of contribution, a 10% tax will be applicable.
8. The EPF office will process the withdrawal and transfer the funds to your bank account.
9. The EPF office will issue a receipt of the withdrawal and the money will be credited to your bank account in a few days.
Process to Withdraw EPF Money
1. Log into the Employee Provident Fund Organization (EPFO) portal.
2. Go to the ‘Online Services’ tab and click on the ‘Claim (Form-31, 19 & 10C)’ option.
3. Select the option ‘Proceed for Online Claim’.
4. Select the EPF withdrawal claim type. You can select from the options of withdrawal for housing, pension withdrawal, EPF final settlement, and advance withdrawal.
5. Enter the details of your Universal Account Number (UAN) and other personal information.
6. Upload the necessary documents like identity proof, address proof, and bank details.
7. Submit the claim.
8. The EPFO will review the claim and approve or reject it.
9. Once approved, the EPF money will be transferred to your bank account within 10 days.