Employee Provident Fund is fund for the workers who works for the state government and also for the central government of india are can get Employee Provident Fund. In this fund some amount of money is transferred into this type of accounts for the best future of the employees and their families.
In this both employee and organization should contribute money every month and it is credited to after retirement of employee with interest provided by bank. ( Employee Provident Fund) It is good financial support and secure policy.
Also Read [ Also Read: Nvsp Portal login]
What are Employee Provident Fund Intrests and Contribute
For all government employee there is a benefit of EPF (Employment Provident Fund) which is provided by provisions act 1952. It will give an assurance of 15000 with consent of Assistant Commissioner and employee.
Under these scheme an employee get deducted 12% from his salary to EPFO (employee provident fund organization). 12% of employee will get 8.33% as pension scheme.
Opening balance of employee is calculated by previous year bal + monthly contributions + total interest
Voluntary provident fund (VPF):
If employee want to save more money than he can contribute money of his salary voluntarily and its produce tax free and it is optional and it’s depend upon his interest.
Also Read EPFO MEMBER E-SEVA PORTAL –UAN LOGIN PROCESS
What is Process to withdraw Employee Provident Fund?
The employee can withdraw his or her EPF balance either partially or fully under certain conditions and for specific purposes. The withdrawal process can be done online or offline.
To withdraw EPF online, the employee needs to follow these steps:
- Log in to the EPFO portal with his or her UAN and password.
- Go to the Online Services section and select Claim (Form-31, 19 & 10C).
- Verify his or her bank account number and KYC details.
- Select the type of withdrawal claim (PF Advance or PF Final Settlement or Pension Withdrawal).
- Therefore Fill in the required details and submit the claim form.
- An OTP will be sent to the registered mobile number for verification.
- After verifying the OTP, the claim will be submitted to the EPFO.
- The claim status can be tracked online or through SMS alerts.
To withdraw EPF offline, the employee needs to follow these steps: - Now Download Form 19 (for PF Final Settlement), Form 10C (for Pension Withdrawal) or Form 31 (for PF Advance) from the EPFO website or obtain it from the nearest EPFO office.
- Fill in the required details and attach the necessary documents, such as Aadhaar card, PAN card, bank passbook, cancelled cheque, etc.
- Submit the form to the employer for verification and attestation.
- The employer will forward the form to the EPFO office within 15 days.
- The claim status can be tracked online or through SMS alerts.
The withdrawal amount will be credited to the employee’s bank account within a few days after approval by the EPFO.
Also Read EPF Claim Process with Form 10C Application Form download
Epf important Notice
If you work for 60 days or 2 months, you can take out 75% of your PF money. PF money is what you save from your salary. You need to ask for it online. It will take 15 to 20 days to get your money. You need to fill a form with your UAN number online. UAN number is a special number for your PF account.
EPF Intrest Rates 2024
- Every year, the government decides how much interest you will get on your EPF money. The government listens to a group of experts from EPFO, who suggest the best rate for you and your employer.
- The interest is added to your EPF money every year, at the end of March. The interest makes your EPF money grow faster over time.
- For this year (2022-23), the government has announced a high interest rate of 8.15% for your EPF money. This means you will get more money from your EPF savings than last year, when the rate was 8.05%.
What are the EPF interest rates?
The EPF interest rates are determined by the EPFO Central Board of Trustees (CBT) every year after consulting with the Ministry of Finance. The interest rates are announced at the end of the financial year and are applicable for the next financial year. The interest rates vary depending on the economic conditions and the performance of the EPF investments.
The EPF interest rate for the financial year 2022-23 is 8.15%, which is lower than the previous year’s rate of 8.50%. This means that for every Rs. 100 deposited in the EPF account, Rs. 8.15 will be added as interest at the end of the year.
The table below shows the historical EPF interest rates since 1952:
| Year | EPF Interest Rate |
|---|---|
| 2021-22 | 8.10% |
| 2020-21 | 8.50% |
| 2019-20 | 8.50% |
| 2018-19 | 8.65% |
| 2017-18 | 8.55% |
| … | … |
What are actual Benefits Of Employee Provident Fund
- EPF is a way to save money from your salary for your future.@Official Website
- You and your employer both put some money in your EPF account every month.
- The government gives you a tax break for saving in EPF. You can save up to Rs 1.5 lakh per year and not pay tax on it.
- The money in your EPF account earns interest. You don’t have to pay tax on the interest either, if you follow some rules.
- Some of the money that your employer puts in your EPF account goes to another account called EPS. This account gives you a monthly income after you retire or stop working.
- If you die while working, your family will get some money from another scheme called EDLI. This money depends on how much you earned and saved in EPF.
- You can take out some or all of the money from your EPF account before you retire, if you need it for some reasons. For example, you can use it for your wedding, education, medical bills, home loan, or buying a house.
- These are the main benefits of EPF:
- Tax saving
- Interest earning
- Pension income
- Insurance cover
- Withdrawal facility
Advantage for employee:
No employee should not wait for retirement age one should claim that in time of working under some of circumstances such as
- Loans on houses
- Purchasing new house
- Educational loan
- Medical loans
- Marriage of children
Main condition to take money is that he should be a member of PF for minimum of 3 years.
How to calculate interest on EPF?
The interest on EPF is calculated on a monthly basis, but credited to the account at the end of the financial year. The interest is calculated on the opening balance of each month, plus any contributions made during that month.
The formula for calculating interest on EPF is:
Interest = (Opening balance + Monthly contribution) x Interest rate / 12
For example, suppose an employee has an opening balance of Rs. 10,000 in his or her EPF account on April 1, 2022, and contributes Rs. 1,000 every month till March 31, 2023. Assuming that the interest rate for 2022-23 is 8.15%, the interest earned for each month will be as follows:
| Month | Opening Balance | Monthly Contribution | Interest Earned |
|---|---|---|---|
| April | Rs. 10,000 | Rs. 1,000 | Rs. (10,000 + 1,000) x 0.0815 / 12 = Rs.74 |
| May | Rs. 11,074 | Rs. 1,000 | Rs. (11,074 + 1,000) x 0.0815 / 12 = Rs. 82 |
| June | Rs. 12,156 | Rs. 1,000 | Rs. (12,156 + 1,000) x 0.0815 / 12 = Rs. 89 |
| … | … | … | … |
| March | Rs. 22,760 | Rs. 1,000 | Rs. (22,760 + 1,000) x 0.0815 / 12 = Rs. 161 |
The total interest earned for the year will be the sum of the monthly interest amounts, which is Rs. 1,224.
The closing balance of the EPF account on March 31, 2023 will be the opening balance plus the total contributions plus the total interest, which is Rs. (10,000 + 12,000 + 1,224) = Rs. 23,224.
How to check Employee Provident Fund balance?
The EPF balance is the amount of money that is available in the employee’s EPF account at any given point of time. The EPF balance consists of the employee’s contribution, the employer’s contribution and the interest earned.
There are various ways to check the EPF balance, such as:
- EPFO portal: The employee can visit the official website of EPFO and log in with his or her Universal Account Number (UAN) and password. The UAN is a unique 12-digit number that is assigned to every EPF member by the EPFO. The UAN can be obtained from the employer or by visiting the UAN portal. After logging in, the employee can view his or her EPF balance and download the passbook.
- EPFO app: The employee can download the official app of EPFO from Google Play Store or App Store and register with his or her UAN and mobile number. The app allows the employee to check his or her EPF balance, download the passbook and raise queries.
- SMS service: The employee can send an SMS to 7738299899 from his or her registered mobile number in the format EPFOHO UAN ENG. The ENG stands for the preferred language of communication, which can be changed to any of the 10 languages supported by EPFO. The employee will receive an SMS with his or her EPF balance and other details.
- Missed call service: The employee can give a missed call to 011-22901406 from his or her registered mobile number and receive an SMS with his or her EPF balance and other details.
What are the tax implications of Employee Provident Fund withdrawal?
The tax implications of EPF withdrawal depend on various factors, such as:
- The duration of service: If the employee has completed five years of continuous service with one or more employers, then the withdrawal amount is tax-free. However, if the employee has not completed five years of service, then the withdrawal amount is taxable as per his or her income tax slab rate. There are some exceptions to this rule, such as termination due to ill health, closure of business, etc.
- The type of withdrawal: If the employee withdraws a part of his or her EPF balance for specific purposes, such as marriage, education, medical treatment, etc., then there is no tax liability. However, if the employee withdraws more
Conditions for availing benefits:
One should possess unique 12digit id and it is same for all employment time which is used for withdrawal of money
Conclusion:
Main aim is in this both employee and organization should contribute money every month and it is credited to after retirement of employee with interest provided by bank. It is a good financial support and secure policy.
Frequently Asked Questions
Q .What is EPF and how does it work?
A .EPF is a savings scheme for employees and employers.
Q .How to check EPF balance online or offline?
A .You can check EPF balance via SMS, missed call, app, or portal.
Q .How to update KYC information for EPF account?
A .You can update KYC information through UAN member portal or app.
Q .How to withdraw EPF money online or offline?
A .You can withdraw EPF money by filing a claim form online or offline.
Q .How to transfer EPF money from one account to another?
A .You can transfer Employee Provident Fund money by using the online transfer claim portal
