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Employee Provident Fund

Ankit0

The Employee Provident Fund (EPF) is a statutory retirement savings scheme in India administered by the Employees Provident Fund Organisation (EPFO). It is a mandatory scheme for employers to contribute to for their employees.

Key Features:

  • Retirement Savings: EPF is a long-term savings scheme specifically designed for retirement. Employees and employers contribute a fixed percentage of the employee’s salary, which is typically 12% for both.
  • Tax Advantage: Contributions to EPF are exempt from income tax. Withdrawals from EPF during retirement are also exempt from income tax.
  • Interest on Contributions: EPF contributions earn interest at a fixed rate announced by the EPFO. The interest rate is currently 8.50% for the financial year 2023-24.
  • Minimum Sum Required: Employees who have completed at least five years of service are eligible to withdraw their EPF savings in the form of a lumpsum or annuity. The minimum sum required for withdrawal is Rs. 1 lakh.
  • Voluntary Contributions: Employees can make additional voluntary contributions to their EPF account.
  • Loan Facility: EPF has a loan facility that allows employees to avail loans for various purposes, such as buying a house or meeting medical expenses.
  • Pension Scheme: EPF also offers a pension scheme for employees who have contributed to the fund for at least 20 years.

Eligibility:

  • All employees working in India under a company covered by EPF.
  • Minimum service of five years.

Contribution Rate:

  • Employer and employee contribute 12% of the employee’s salary.
  • The employer’s contribution is made on the employee’s salary up to the limit of 15% of the salary.
  • If the employer contributes more than 12%, the additional contribution is made to the employee’s account as voluntary contributions.

Benefits:

  • Tax- exempted savings for retirement
  • Interest on contributions
  • Minimum sum required for withdrawal is relatively low
  • Loan facility
  • Pension scheme

Additional Notes:

  • EPF is a popular savings scheme among Indian employees.
  • The EPF contribution is a mandatory part of the salary package in most companies.
  • Employees can access their EPF savings anytime, but withdrawals are subject to certain conditions.
  • EPF is a valuable retirement savings scheme that helps.

FAQs

  1. Can I check my PF balance?

    Yes, you can check your Provident Fund (PF) balance online through various methods such as the EPFO portal, the UMANG app, or by sending an SMS or giving a missed call using your registered mobile number that is linked to your UAN (Universal Account Number).

  2. How can I withdraw my PF online?

    To withdraw your PF online, you need to visit the EPFO member portal and log in using your UAN and password. Once logged in, navigate to the “Online Services” section and select “Claim (Form-31, 19 & 10C).” Fill in the necessary details and submit your claim request. The withdrawal process will be initiated after submission.

  3. How can I check my PF balance without a UAN number?

    To check your PF balance without a UAN number, you may need to visit the nearest EPFO office or consult your company’s HR department for assistance. While online methods such as the EPFO portal or the UMANG app typically require your UAN, an in-person approach may help you retrieve your balance without it.

  4. How can I get my UAN number online?

    To retrieve your UAN number online, visit the EPFO portal and click on the option โ€œKnow Your UAN.โ€ You will need to provide details such as your PF member ID, Aadhaar, or PAN. After submitting the required information, you will receive your UAN on your registered mobile number.

Disclaimer

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