Employee Provident Fund Organisation (EPFO) is one of the global premier Social Security Organisations, established under the Employees’ Provident Funds & Miscellaneous Provisions Act of 1952. It is a body that promotes employees to save retirement corpus and is governed by the Ministry of Labour and Employment, Government of India.
Employee Provident Fund (EPF) is a retirement benefit scheme where both employee and employer contribute 12% of the employee's basic salary. When the employees retire, they receive a lump sum that includes both the contribution with interest. The EPF interest rate is 8.35% per annum.
Latest Update
The EPFO has increased the auto settlement threshold limit for advance claims from Rs. 1 lakh to Rs. 5 lakh.
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.
Name | Employee Provident Fund Organisation |
Website | epfindia.gov.in |
Founded | 4th March 1952 |
Headquarters | New Delhi |
Owned By | Ministry of Labour and Employment, Government of India |
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.
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.
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
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.
The following are few of the many services offered by the EPFO to it's members:
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.
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.
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.
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.
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.
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.
Members can view their passbook and check their claim status online. Members can also update/modify basic KYC details online.
EPF or Employee Provident Fund is a retirement savings scheme where both the employee and the employer contribute a certain portion of the basic salary to the employee's EPF account. The amount deposited accumulates interest over the period. Post-retirement, the employee can withdraw the retirement corpus from this account which includes the principal contributions from the employee and the employer, and the accumulated interest.
The EPF contributions can be broken down into two parts. Both the employee and the employer contribute 12% 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 12% is further divided as follows:
Particulars | Percentage |
EPF | 3.67% |
EPS | 8.33% |
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.
Use ClearTax EPF Calculator.
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.
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.
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:
The exemption of Aadhaar not mandatory apply to the following:
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:
Read our blog to know the detailed procedure of EPF withdrawal.
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:
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.
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:
By following these steps, you can register your EPF grievance effectively through the EPFO's member portal.
To update KYC details on the e-Sewa portal of the EPFO website, employees can follow these steps:
By following these steps, employees can easily update their KYC details on the e-Sewa portal of the EPFO website.