EPF Scheme 1952

Disclaimer: This document is intended solely for educational purposes. The content herein is subject to change based on evolving finance trends and any relevant rulings by the Government of India. Readers are advised to consult with qualified professionals for specific guidance related to their individual circumstances.

 

Q1. Who can be member of EPFO?

A person who is employed for wages in any kind of work, manual or otherwise, in or in, connection with the work of a establishment covered under the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952, and who gets his wages directly or indirectly from the employer, and includes any person employed by or through a contractor in or in connection with the work of the establishment.

Q2. Who can be a member?

An employee of a covered establishment, if not excluded, is compulsorily a member of the employees’ Provident Funds Scheme. The employer of the establishment himself makes the employee a member by following prescribed procedure. An excluded employee is an employee whose pay at the time of being a member exceeds Rs. 15,000/- per month

Q3. Can a member contribute at a higher rate (above 12%) on a voluntary basis?

Yes.

Q4. What is contribution rate payable for a member?

At present, an employee contributes 12% of the Basic wages + Dearness allowance + Retaining allowance in EPF. The employer also pays 12% of pay out of which 8.33% of pay is diverted to Pension Fund and the rest 3.67% is diverted to EPF.

Q5. Does a member contribute to employees’ Pension Scheme and employees’ Deposit-Linked Insurance Fund Scheme (EDLI)?

No. The employer pays 12% out of which 8.33% is diverted to the Pension Fund. An employer also pays 0.5% of Pay in EDLI Scheme.

Q6. What are the benefits available to EPF members?

1. Advances: A member can take non-refundable advances during service period for various purposes:-

   • Treatment of illnesses of self/family: TB, leprosy, paralysis, cancer, mental derangement heart ailment, pandemic or major surgical operation

   • Marriage of self, daughter, son, brother & sister.

   • Post-matriculation education of son/daughter

   • Withdrawal for purchase of house, flat, dwelling house, addition/alteration of house and repayment of loan for the purpose.

   • Withdrawal within one year before retirement: Upto 90% of total PF balance.

   • Advance on unemployment: Upto 75% of total PF balance.

2. Final settlement: On retirement or two months after ceasing to be an employee.

3. Pension after retirement subject to the eligibility

4. Insurance in case of death while in service.

Q7. What are the other facilities available for a member?

1. Member portal: EPFO provides UAN based online account of member data on EPF website secured with login password.

2. Passbook: for updated balance

3. Online claim filing: A member can file online EPF claims for various benefits through member portal if the EPF account is seeded with Aadhar, PAN & Bank account.

4. Online filing of transfer claim from previous account to new EPF account in case of job change from one covered EPF establishment to another EPF Covered establishment.

5. Modified Declaration form (Form No-11) for automatic transfer of Funds: Members can effect transfer of EPF Fund from previous account to new account without transfer claim if both accounts are linked with UAN and Aadhar seeded.

Q8. Which forms to be filled for claiming benefits?

1. For Final settlement/Withdrawal benefits/Advances: Composite Claim form (Aadhar/non-Aadhar)

2. Scheme certificate: Form 10C

3. For pension: Form 10D

4. For transfer of previous account balance to new account: Form 13

5. For nomination of family members: Form 2

6. Declaration of previous service: form 11

Q9. How to Update Bank account?

A member can update his bank account through a member portal which is then approved by the employer.

Q10. How much time is taken to settle a claim?

As per EPF Scheme, a claim is required to be settled within 20 days.

Q11. What is KYC?

KYC (Know Your Customer) is a member's data updation to improve the services of EPFO for members. These KYC details include PAN, Aadhaar and Bank Account details. 

Q12. What are the benefits of KYC?

Claim can be submitted through online mode without attestation of the employer. A member can view his monthly contribution statement by logging on the UAN portal.

Q13 How do I apply for correction in KYC/members’ details?

In order to update or change in KYC (Know your customer) detail on UAN EPFO portal, a member requires UAN (Universal Account Number). Members can login to EPFO UAN portal and update KYC by uploading necessary documents online. Online request for correction in name, date of birth and gender has been introduced.

Q14. How can I update KYC?

Members can update KYC details online in EPFO’s UAN Portal.

Q15. What is UAN?

UAN (Universal Account Number) is a unique 12 digit number allotted to a member. It is a permanent number and remains valid throughout the life of a member. It does not change with the change of employment. UAN helps in automatic transfer of Funds and PF withdrawals.

Q16. Who can generate UAN and How I can get my UAN?

Your Employer can generate the UAN. In case of change in employment, the previously allotted UAN may be provided to the employer.

Q17. What are the benefits of Aadhaar, PAN & Bank accounts details seeded with UAN ?

1. Member can submit claims through online mode

2. Members can file claims directly without the employer's signature.

Q18. What is an Inoperative Account?

An account is classified as an Inoperative account in which contribution has not been received for 3 years after retirement or permanent migration abroad or in case of death. At present, all accounts will earn interest upto 58 years age of a member.

Q19. How Aadhaar, PAN and Bank Account  is seeded with UAN?

Member can seed through Member portal, after UAN is activated by employer.

Q20. Will my inoperative account earn interest?

No. However, at present, all accounts will earn interest upto 58 years of age..

Q21. What should I do if my account becomes inoperative?

If you are still working in an establishment covered under EPF & MP Act, 1952, you should get the amount transferred into your new account either by online or offline mode. If you have retired then you may withdraw the amount.

Q22. Will my withdrawal be subject to deduction of income tax (TDS)?

In case a member withdraws his EPF and has rendered less than 5 years of service and accumulated amount is more than Rs. 50,000/, TDS shall be applicable on the following rates:-

Q23. How does one file a Nomination form for EPF?

Form No-2 is prescribed under Employees Provident Fund, employees’ Pension Scheme and Employee’s Deposit Link Insurance Scheme for submitting family and nomination details.

Q24. What are the benefits of submitting Form No-2?

In case of a member’s death, the family can get the benefit PF/Pension/Insurance without any delay.

Q25. Is it compulsory to enclose cancelled original cheque with the claim form?

Yes. A cancelled original cheque bearing name of the member, his bank account number and IFS Code of the bank should be printed on the cheque itself.In case, members’s bank account is ‘without cheque-book’ facility, then copy of first page of passbook duly attested by the employer or the bank manager may be enclosed with the claim form.

Q26. Are the payments made through NEFT (National Electronic Funds Transfer)?

All payments are made electronically through NEFT or CBS (Core-Banking Solutions).