What is the ETH? Everything you need to know about the EPF

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The Employee Provident Fund or EPF is a public scheme which is a savings tool for employees. The EPF system promotes the savings of professionals employed in the service sector. Investing in an Employee Provident Fund ensures that you have a good lump sum income available when you retire.

This scheme is operated under the Employees Provident Funds and Miscellaneous Provisions Act 1952, by the Employees Provident Funds Organization (EPFO). This regime extends to all of India with the exception of Jammu and Kashmir.

Under the EPF scheme, an employee must contribute a certain amount of money to the scheme and an equal amount is also contributed by the employer.

Many employees have a lot of confusion regarding their contribution, interest earned and withdrawal options under the EPF plan. Let us dig deep into some of the basics of the EPF diet.

Basics of the EPF scheme

  1. For each employee, there is only one EPF account.
  2. In an emergency, employees can withdraw part of their EPF, but only after one year of work.
  3. According to the law, any company or business that has at least 20 employees is required to register with the Employees Fund provident organization.
  4. The EPF allows the employer and the employee to contribute each month up to 12% of the cost-of-living allowance of each employee to the provident fund and to the base salary of the EPF.
  5. NGO employees pay 10% of the cost of living allowance and the employee’s basic salary to the EPF.

What services does the EPF system offer?

1.UAN

The Universal Account Number (UAN) is a unique number assigned to all eligible employees. Member IDs assigned to different institutions are tied to their UAN. This helps the employee see all members in one place. When an employee joins a new organization or company, they must provide their UAN to the employer so that new PF accounts are linked to their UAN. This UAN number helps to withdraw funds and transfer PF accounts easily.

2. FPE contribution

As we read above, both the employee and employer contribution to the provident fund, it should be noted that the employee 12% of the combined total of base salary, dearness allowance and retention allowance while 8.33% of the employer’s contribution is directed to the employees’ pension plan.

3. FPE interest rate

For the current fiscal year 2021-22, EPFO ​​has proposed an interest rate of 8.1% on provident deposits. It should be noted that the Ministry of Labor and Employment has reduced the interest rate by 40 basis points for the current financial year.

4. Missed call and SMS service

UAN enabled members can easily get their PF account details just by sending an SMS (Format: EPFOHO UAN to 7738299899) or giving a missed call to 011-22901406.

5. EPF member booklet

EPF members can download their EPF passbook on the EPFO ​​member portal to check their account balance, view their account statements and withdrawals from the EPF account.

6. Partial Fund Withdrawals

This provident fund allows partial withdrawals from the fund. Partial withdrawal of funds is allowed in certain cases such as a medical emergency, home loan repayment, home purchase, home renovation, child marriage, or auto.

7. Use EPF services using the UMANG app

Through the UMANG app, employees can access EPFO ​​services. The app enables both employee-centric and employer-centric services. Using this app, users can check their EPF balance, request withdrawals, view EPFO ​​office addresses, and request a life certificate. Several other services such as EPFO ​​offices, complaint status tracking, SMS account details, etc. can also be used using the Umang app. In case of any queries, you can take advantage of the live chat option provided by the organization through the app.

How to withdraw PF money from EPFO?

Users can withdraw their amount online. Here is a step-by-step guide to withdraw money from the EPFO ​​PF:

Step 1: Visit the EPFO ​​website at https://www.epfindia.gov.in/ and enter your UAN number and password.

Step 3: Click on the ‘online services’ tab and choose Complaint (Form-31, 19 & 10C).

Step 4: Enter the last 4 digits of your bank account number and confirm YES.

Step 5: Sign the commitment certificate and then proceed with the online claim.

Step 6: Select the claim you need under the “I want to apply” tab in the drop-down menu.

Step 7: Enter the amount you wish to withdraw and upload the scanned copy of your check.

Step 9: Enter your address and click on Aadhaar OTP.

Step 10: Submit the 4-digit OTP number and click Claim.

Step 11: Once the employer approves the withdrawal request, you will receive the money in your bank account within 15-20 days.

Read also : Tax return guide: everything you need to know about the RTI



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