Provident Fund is a retirement benefit system available to all salaried employees. The Employees Provident Funds and Miscellaneous Act of 1952 govern the Employees Provident Fund (EPF). The Employee’s Provident Fund Organization (EPFO) is in charge of it. The Employees’ Provident Fund Organization (EPFO), one of the largest social security organizations in the world, is a retirement fund that offers Universal Social Security Coverage to all paid employees in India on a required basis. EPF Scheme 1952, Pension Scheme 1995 (EPS), and Insurance Scheme 1976 are the three plans it runs (EDLI).
What is the eligibility for EPF?
EPF registration is required for all businesses with 20 or more employees. EPF can also be received on a voluntary basis for businesses with less than 20 employees. Both the employee and the employer contribute 12% of the employee’s base salary and dearness allowance to the EPF. The current interest rate on EPF deposits is 8.50 percent per annum.The employee gets a lump sum amount on retirement with interest.
For EPF Registration For New Company, one must provide information about one’s firm, as well as information about the company’s owners. One can join the EPF scheme by registering online.
How is the interest on EPF calculated?
Government and the Central Board of Trustees decide on the amount of compound interest to be paid on the amount credited to the employee on April 1st of each year.
Even if the contributions are made monthly, the interest on the contributions is calculated annually. Employees have an opening balance at the start of each year (the amount accumulated till that point).
The actual application to withdraw PF money must be submitted using either the Aadhaar-based new composite claim form or the non-Aadhaar composite claim form. The employee must complete the new composite claim form and submit the PF withdrawal application directly to the regional PF office, without the attestation of an employer. In the case of a non-Aadhaar composite claim form, employees must fill out the form and have it attested by a bank manager, a Gazetted Officer, or a Magistrate before submitting it to the EPFO office in their territory.
How to submit an online claim?
Withdrawal claims can be submitted in two ways: on paper or online.
- To file an online claim for PF withdrawal, you must connect to EPFO’s site using your UAN and password
- Verify KYC data by selecting the ‘Manage’ tab.
- Then go to the ‘Our Services’ tab and select ‘Claim’ from the drop-down menu.
- Select the sort of withdrawal claim you want to file under the ‘I Want to Apply For’ section (full withdrawal, partial withdrawal, or pension withdrawal).
- The PF amount will be credited to the employee’s account within 10 days after the employer has approved it.
The following are some of the benefits of EPF:
- It aids in long-term financial planning.
- There is no need to invest in a single, lump-sum amount. Employees’ salaries are deducted on a regular basis, which allows them to save a significant amount of money over time.
- It may be able to assist an employee financially in the event of an emergency.
- It aids in the saving of money for retirement and the maintenance of a healthy lifestyle.
Pan India Registration can assist you in EPF registration. Contact us to know more: EPF Registration Form For Employer
