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The Employee Provident Fund (EPF) comes under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It is a Retirement benefit scheme under which employees of an organization contribute a portion of their basic pay monthly. The employer also contributes a similar amount for Employees
To whom it is Applicable:
An organization that has more than 20 Employees is mandatorily subjected to EPF Scheme. It is optional for establishments and organizations who has less than 20 Number of employees.
Benefits of Provident Fund:
When EPF is contributed and during the time of retirement a huge amount is accumulated. If someone wishes to withdraw the amount in between their service period, the amount can be withdrawn partially.
Every employee is assigned a UAN number which is called Universal Account Number by the EPF Organization. Employee’s Account is Inter-Linked with UAN number. This is Valid throughout an employee’s life.
Recently it is automated to transfer the account when an employee moves from one organization to another.
The contribution of the employee and the employer is required to contribute 12% of the basic pay for the EPF account.
In 12% of employer contribution, only 3.67% of the contribution goes into your EPF account. The remaining 8.33% of the employer’s contribution is sent to Employee’s Pension Scheme.
EPF account remains active until the amount is being paid by the employer.
Employees can update the new organization with their EPF account details in the EPF Portal.
One can also view, add details, and download a passbook from the portal with the right login credentials.