Employee Provident Fund (EPF): Grievance, Claim Status, Interest Rate, and Forms

The Employees Provident Fund Organisation (EPFO) is a statutory body under the Ministry of Labour and Employment, Government of India. Established under the EPF & Miscellaneous Provisions Act, 1952, it manages the Employees’ Provident Fund (EPF), a retirement savings scheme where both the employer and employee contribute 12% of the employee’s basic salary. On retirement, employees receive a lump sum amount comprising both contributions and accrued interest. The current EPF interest rate is 8.25% per annum.

EPF Key Highlights

The following table presents the key highlights about EPF scheme and EPFO.

What is EPF?

EPF (Employees’ Provident Fund) is a government-backed retirement savings scheme where both the employer and employee contribute a fixed percentage of the employee’s basic salary to the EPF account. The contributions earn interest over time, helping employees build a retirement corpus. The accumulated amount, including both contributions and interest can be withdrawn upon retirement or under certain conditions.

What is EPFO? 

EPFO or the Employee Provident Fund Organisation is a statutory body created by the Government of India. The administration is managed by the Central Board of Trustees (CBT), Employees’ Provident Fund. The CBT administers three schemes - Employees’ Provident Fund Scheme 1952, Employees’ Pension Scheme (EPS) 1995, and Employees’ Deposit Linked Insurance (EDLI) Scheme 1976. The board is aided by the EPFO, having 147 offices across the country.

Schemes of EPFO

The Act and all its schemes are administered by a tri-partite board called the Central Board of Trustees (EPF). The board comprises representatives of the Government (both Central and State), employers, and employees. The board is chaired by the Ministry of Labour and Employment, Government of India. The Central Board of Trustees (EPF) operates 3 schemes.

1. The Employees’ Provident Funds Scheme, 1952 (EPF)
2. The Employees’ Pension Scheme, 1995 (EPS)
3. The Employees’ Deposit Linked Insurance Scheme, 1976 (EDLI)

The EPFO is an organisation that is established to assist the Central Board of Trustees (EPF) and is under the administrative control of the Ministry of Labour and Employment, Government of India.

Functions of EPFO

EPFO assists the Central Board of Trustees (EPF) in the administration of a provident fund scheme, pension scheme and an insurance scheme for the registered establishments in India and includes employees of such establishments and international workers who are covered.

EPFO’s functioning includes

• Enforcement of the Act across the country (except Jammu and Kashmir)
• Maintenance of individual accounts
• Settlement of claims
• Investment of funds
• Ensuring prompt pension payment
• Updating records

The EPFO’s apex decision-making body is the Central Board of Trustees. EPFO has been taking several measures to simplify the operation of EPF accounts both for employers and employees by adopting IT-enabled tools and techniques. EPFO has undertaken numerous digital initiatives in the recent past.

Overall, the EPFO performs the dual role of being the administration and overseeing the implementation of the Act and also works as a service provider for the covered beneficiaries, i.e. members. EPFO’s website provides access to information and online services.

Services Offered By EPFO

The following are few of the many services offered by the EPFO to it's members:

Universal Account Number

EPFO introduced UAN, which acts as an umbrella for multiple member IDs allotted to an individual by different employers. UAN is a unique 12-digit number assigned to an employee by EPFO. UAN enables the linking of multiple EPF accounts (member IDs) allotted to a single member. Employees are required to activate their UAN at the UAN portal to avail various online services offered by EPFO.

The UAN portal offers a bouquet of services, such as dynamically updated UAN card, updated EPF passbook (including all transfer details), facility to link previous member IDs with the present ID, SMS regarding the credit of contributions in the PF account, and a facility for auto-triggering transfer request on change of employment.  

Online EPF Transfer

While the EPF transfer was possible online earlier under ‘Online Transfer Claim Portal’, with the introduction of UAN, the process of transfer is revised and shifted under the ‘Unified Portal’. This has made EPF transfer from one account to another easy, paper-free, and also hassle-free. Refer to our article on the online EPF transfer process for more information.

Online PF Withdrawal

An employee is allowed to withdraw PF amount if he/she is not employed for 60 days post resigning the previous employment. EPFO has enabled online EPF withdrawal with a simple procedure for UANs linked with Aadhar. Refer to our article on online EPF withdrawal.

PF Payments Online

It is mandatory for all establishments to make EPF payments online. EPFO has a tie-up arrangement with some banks to collect EPFO dues and the participating banks are SBI, PNB, Indian Bank, Union Bank of India, Bank of Baroda, HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank. Refer to our article on PF payment online for more details.

Centralised Software for Generation of Certificate of Coverage for International Workers

EPFO has launched an online form through its centralised software to generate the Certificate of Coverage (CoC) to EPF members working in countries having Social Security Agreements with India.

SMS Service/Alerts and Missed Call Service

The SMS service and missed call service were launched to give better access to the EPF account to the EPF members who have activated their UAN. Members can access details of KYC status, last contribution, total EPF balance by sending an SMS in the format ‘EPFOHO UAN’ followed by the first three characters of their preferred language to 7738299899.

Members can also obtain details by giving a missed call to 011-22901406. SMS alerts are also sent to the members intimating remittance, withdrawals, interest credit, etc. Also, SMS is sent to the employers for non-deposit of dues.

Passbook and Claim Status

Members can view their passbook and check their claim status online. Members can also update/modify basic KYC details online.  

EPF Eligibility

• Employees whose basic pay and dearness allowance is up to Rs. 15,000 is mandatorily required to enroll for EPF account.
• Even if it exceeds Rs. 15,000 at a later point of time the contribution amount will be calculated as a percentage for Rs. 15,000.
• A person whose basic pay and dearness allowance exceeds Rs.15,000, the employee can still opt for voluntary contribution. 

Note: Dearness allowance is only for a government employee, and is not usually provided for employees working in private sector.

EPF Interest Rate

The current EPF interest rate is 8.25%. It is simple to calculate the accumulated interest in an EPF account at the end of a financial year. This interest amount is then added to the contributions made by both the employer and the employee to determine the total balance in the account.

EPF Contribution Details

The EPF contributions can be broken down into two parts. The employee contributes 12% and the employer contribute 13% of the basic salary and dearness allowance monthly to the employee's EPF account. The employee's contribution of 12%, entirely goes to the EPF account. However, the employer's contribution of 13% is further divided as follows:

Illustration

Let us first understand the EPF calculation with an example. Mr A has a salary structure in which his monthly basic pay is Rs. 14,000 and he does not receive dearness allowance as he is not a government employee. Now the PF contribution for employer and employee is as follows:

Employer's contribution amount = 14000 * 13% = Rs.1,820

Employee's Contribution amount = 14000* 12% = Rs. 1,680

EPF Calculator

Let us understand the EPF returns with an example.

Suppose Mr A is contributing Rs. 1,000 every month to PF. Assuming he will be able to contribute the same amount for 15 years, and considering the interest rate of 8.25%, he will receive a maturity amount, Rs.3,59,644.

Use ClearTax EPF Calculator . 

EPF Claim Status

Once a member decides to withdraw their EPF funds, they can log in to the EPFO portal and submit an online request. The member can also track the status of their EPFO claim online through the same portal. 

Alternatively, employees can check the claim status by giving a missed call to 011-22901406 from their registered mobile numbers. The SMS facility or the UMANG app can also be used for checking the EPFO claim status.

To check the PF status, the member needs to provide the following information:

• Employment details
• Extension code (if required)
• Employer's EPF regional office
• Universal Account Number (UAN) 

Read our blog to know the detailed procedure of EPF withdrawal.

EPF Forms

For every activity in EPFO account, right from account opening, transfer, withdrawal and final settlement, there are various forms using which the appropriate compliance or facility can be availed. Below is a list containing various PF forms:

EPF Benefits

Here are the advantages of the EPF scheme:

1. Saving for the future: The EPF scheme enables individuals to save money for the long term.
2. Convenient deductions: Instead of making a large, one-time investment, deductions are made from the employee's monthly salary. This allows for significant savings over an extended period.
3. Financial support in emergencies: The EPF scheme can provide employees with financial assistance during unexpected situations.
4. Retirement savings: By participating in the EPF scheme, individuals can accumulate funds for their retirement, ensuring a comfortable lifestyle in later years.

EPF Taxation & Exemptions

The EPF contributions made by both the employee and employer have various tax benefits. The employee contribution towards EPF can be claimed as a deduction up to Rs. 1.5 lakh under Section 80C in the old tax regime only. The employer's contribution of up to 12% of the basic salary is exempt from tax under both the new and old tax regimes. However, the employer's contribution exceeding Rs. 7.5 lakh is taxable. 

The interest accumulated on the employee's contribution up to Rs. 2.5 lakh is tax-free. However, the interest on contributions above Rs. 2.5 lakh is taxable. Similarly, contributions by the employee over and above Rs. 2.5 lakh is also taxable and not exempt. The interest on the employer's contribution is completely tax-free. Read our EPF Interest Taxation page for more information. 

EPFO New Provident Fund Rules

Recent updates from the Employees' Provident Fund Organisation (EPFO) have introduced significant changes for processing Provident Fund (PF) claims. Here’s a summary of the new rules:

Aadhaar Requirement Changes

• Aadhaar Not Mandatory: The EPFO has announced that Aadhaar is no longer mandatory for few categories of employees to process their PF claims. This change aims to facilitate claim settlements for individuals who may not possess an Aadhaar number, such as international workers, Indians with foreign citizenship, and citizens of Nepal and Bhutan.
• Alternative Verification Documents: For those exempt from the Aadhaar requirement, verification will now be conducted using alternative documents. These can include passports, citizenship certificates, PAN cards, and bank account details. For claims exceeding ₹5 lakh, additional verification by the employer will be necessary.

Specific Exemptions

The exemption of Aadhaar not mandatory apply to the following:

• International Workers: Those who have left India after completing their assignments without obtaining Aadhaar.
• Indian Workers Abroad: Individuals who have permanently migrated and do not have Aadhaar.
• Nepali and Bhutanese Citizens: Employees from these countries working in India but without Aadhaar

Additional Changes to Claim Processing

• Faster Claim Settlements: The EPFO has implemented a multi-location claim settlement facility to expedite the processing of claims nationwide. This change is designed to reduce delays caused by geographical jurisdiction issues.
• Relaxation of Document Requirements: The EPFO has also relaxed the requirement to upload images of cheque leaves or attested bank passbooks for certain eligible cases, which will further streamline the claim process.
• Increase in Auto-Settlement Threshold: The EPFO has increased the auto-settlement threshold limit for advance claims from Rs. 1 lakh to Rs. 5 lakh. 
• Reduction in the time limit for withdrawal: EPF members can withdraw their EPF corpus for housing needs after 3 years of EPF account opening. The previous limit for withdrawal was 5 years from EPF account opening. 
• Increase in withdrawal limit for Housing Purposes: The EPFO has allowed its members to withdraw up to 90% of their EPF corpus. Previously, the withdrawal for housing was limited to 36 months of both employee and employer contributions including including interest.

EPFO Portal Login

The initial step to access the EPFO portal is to activate the Universal Account Number (UAN), which can be easily done on the portal itself.

Once logged in with the UAN, users can perform various activities, including:

• Downloading the UAN card and passbook.
• Checking the status of PF linking.
• Viewing member IDs.
• Tracking the status of PF transfer claims.
• Editing personal details on the EPFO portal.
• Updating KYC information.

Employees can log in to the EPF member portal using their UAN and password, while employers can access the website using their permanent login ID and password.

EPFO Grievance

To assist employees in registering grievances, the EPFO has dedicated a section on their member portal where individuals can fill out a grievance registration form and file complaints. Common grievances faced by employees include issues related to withdrawals, PF settlements, account transfers, pension settlements, and more. If you are new to the EPFO's member portal and wish to register an EPF grievance, follow these steps:

• Visit the EPFO grievance portal.
• Click on the "Register grievance" option located on the top bar.
• Once clicked, the grievance registration form will be displayed.
• Fill in the registration form by providing the following details:
  • Select your status (Employer, employee, EPS pensioner).
  • Enter your PF account number.
  • Specify the location of your regional EPF office.
  • Enter the name and address of your establishment.
  • Provide your personal details, including name, address, pin code, country, phone number, and email ID.
  • Select the appropriate grievance category from the dropdown menu, such as transfer or withdrawal-related issues, pension settlement, etc
• Upload your grievance letter, enter the captcha, and submit your grievance registration.

By following these steps, you can register your EPF grievance effectively through the EPFO's member portal.

EPFO KYC

To update KYC details on the e-Sewa portal of the EPFO website, employees can follow these steps:

• Log in to the EPFO e-Sewa portal.
• Click the ‘Manage KYC’ option.
• Select the type of document you wish to update on the portal, such as PAN, Aadhaar, Ration Card, etc.
• Update the document number and member name as per the document.
• If applicable, update the expiry date of the document.
• Save and submit the changes.
• The employer will review the submitted details and provide approval.
• Once approved, the employee will receive an SMS confirming the employer's approval.

By following these steps, employees can easily update their KYC details on the e-Sewa portal of the EPFO website.