Administered by the Employees’ Provident Fund Organisation (EPFO) under the EPF Act of 1952, EPF is a retirement savings scheme available to salaried citizens.
The current EPF and voluntary provident fund () interest rate is 8.25%. The scheme functions through joint contributions from both the employer and employee, wherein you receive the lump sum corpus at retirement.
Eligibility for an EPF account includes the mandatory enrolment of salaried individuals with basic pay and dearness allowance of up to ₹15,000. You can also opt for VPF if basic pay and (DA) exceed ₹15,000 per month.
Notably, employee contributions up to ₹1.5 lakh annually are exempt under Section 80C of the old tax regime. Employers’ up to 12% (below ₹7.5 lakh) is exempt under the old and new tax regimes. There is no similar benefit at present under the new tax regime.
Further, for employees, interest on accumulated contribution up to ₹2.5 lakh is tax-free, while interest on the employer’s contribution is tax-free.
Here are some key FAQs answered
Can EPF amounts be attached for liabilities? No, the enjoys protection against attachment by any Court also as per the provisions of section 10 of the EPF & MP Act,1952.
What happens if the employer recovers contribution but doesn’t deposit? The EPFO will invoke penal provisions of the Act to recover the dues from the employer. Complaint can be lodged with Police under section-406/409 of Indian Penal Code by the for action against such employers.
Can an employer deduct employer’s share from employee wages? No. It is not permissible. Any such deduction is a criminal offence.
What is the Universal Account Number? is a 12 digit number allotted to each subscriber by linking it to the member’s currently active PF account number from 31/07/2014 to 30/11/2016. From 12/2016 any new member has to be allotted a UAN linked to the establishment’s code number.
Who allots the Universal Account Number? The number is allotted by EPFO on the request of the Employer and populated in the Employer’s login in the unified portal www.unifiedportal-emp.epfindia.gov.in. The UAN can also be generated by any individual using his/her if his UAN is not already generated.
What can I do in caser of two UANs? You can reach out to the EPFO via email uanepf@epfindia.gov.in and request for the previous UAN to be deactivated. You will have to mention both old and current UAN in the email. You will also need to submit a claim with the body to retrieve funds or transfer it to the current account from the previous UAN.
Who is eligible to get a Scheme Certificate? A member whose service is 10 years or more and not attained the age of 58 years will be mandatorily issued scheme certificate. A member whose service is less than 10 years can avail the to carry forward his pension service, but it is not mandatory for such member.
What are the advantages of taking a Scheme Certificate? It facilitates transfer of Pension Accounts when the employment is changed. Also, if the Holder of Scheme Certificate dies the family will get family pension.
EPFO: How does the grievances redressal work?
- A complainant can lodge their grievance online directly here — using their UAN / Establishment / PPO number.
- You must enter the required details and fill the grievance category and description along with uploading supporting documents.
- Once submitted, the complaint is forwarded to the concerned provident fund office which is linked to its UAN / Establishment / PPO number.
- If you do not have a UAN / Establishment / PPO number your grievance can be registered in the ‘Others’ category by filling details of the particular fund office that is being addressed.
- After successfully lodging the grievance a unique registration number will be generated and sent to your mobile number or on email id. You can track the status or disposal of the grievance through this registration number.
- You can use the portal to add supporting document pertaining to the grievance and the EPFO offices can also ask for more documents and seek further inputs from the .
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