The Employees' Provident Fund (EPF) is a social security scheme for salaried employees in India, managed by the Employees' Provident Fund Organisation (EPFO). It helps individuals save for retirement by ensuring financial stability.

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Why EPF is Important

• Retirement Planning: Provides a financial cushion for post-retirement life.
• Social Security: Covers contingencies like sickness, injury, and unemployment.
• Tax Benefits: Contributions and earned interest are exempt under Section 80C.

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Key Components of EPFO Schemes

• Employees' Provident Fund (EPF):

• Savings account with contributions from both employer and employee (12% of basic salary).

• Employees' Pension Scheme (EPS):

• Provides a monthly pension after retirement.

• Employees' Deposit Linked Insurance Scheme (EDLI):

• Offers life insurance coverage.

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How EPF Works

• Contributions:
• Employee: 12% of basic salary + Dearness Allowance (DA).

• Employer: 12%, split into EPF (3.67%), EPS (8.33%), and EDLI (0.5%).

• Interest Rate:

• Current rate: 8.1% (FY 2021-22), compounded annually.

• Tax Benefits:

• Contributions, interest, and withdrawals after 5 years are tax-exempt.

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Benefits of EPF

• Guaranteed Returns: Backed by the government.
• Emergency Savings: Partial withdrawals allowed for specific needs like medical emergencies, marriage, or education.
• Portability: Unified Account Number (UAN) links multiple PF accounts, making transfers easy.
• Retirement Corpus: Helps employees build a substantial fund over their working years.

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Starting an EPF Account

• Eligibility:
• Mandatory for employees in establishments with 20+ employees.
• Basic salary + DA <15,000/month is automatically eligible.

• Employees earning above15,000 can voluntarily opt in.

• Registration:

• Employer registers with EPFO and provides employees with a UAN (Universal Account Number).
• UAN remains constant across employers.

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Accessing EPF Services Online

• UAN Member Portal:
• Log in at EPFO Portal.

• Services include checking balance, downloading passbooks, and submitting claims.

• Documents Required:

• Identity Proof: PAN, Aadhaar, Voter ID, Passport.
• Address Proof: Utility bills, rental agreement.
• Bank Details: Account number and IFSC code.

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EPF Withdrawal

• Full Withdrawal:
• Allowed after retirement or unemployment for more than 2 months.

• Tax-free if service exceeds 5 years.

• Partial Withdrawal:

• For specific purposes like medical treatment, education, or home purchase.

• Procedure:

• Online: Log in to the UAN portal, select Claim (Form-19, 31, 10C & 10D), and submit.
• Offline: Fill and submit the Composite Claim Form to the jurisdictional EPFO office.

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EPF Transfer

When changing jobs, you can transfer your EPF balance to a new account.

• Eligibility:

• Active UAN linked with Aadhaar and bank account.

• Steps:

• Log in to the UAN portal.
• Select One Member – One EPF Account under Online Services.
• Verify details and submit the request.

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How to Check EPF Balance

• SMS Service:

• Send “EPFOHO UAN” to 7738299899 from your registered number.

• Missed Call:

• Give a missed call to 011-22901406 from your registered number.

• EPFO Portal:

• Log in with UAN to view the passbook.

• Umang App:

• Access EPF passbook, raise claims, and track claim status.

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Opting Out of EPF

• Eligibility:

• Employees earning more than15,000/month can opt out during the initial employment stage.

• Procedure:

• Fill out Form 11 and submit it to the employer.

• Why Avoid Opting Out:

• Lose employer contribution.
• Miss tax benefits and higher interest rates.

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EPS (Employees' Pension Scheme)

• Purpose: Provides a monthly pension post-retirement.
• Contribution: 8.33% of the employer's share goes to EPS.
• Pension Eligibility:
• Minimum 10 years of service.
• Pension starts at age 58 or can be availed early at 50 with reduced benefits.

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EPF and Taxes

• Tax Exemptions:

• Contributions, interest earned, and withdrawals after 5 years are tax-free.

• TDS on Early Withdrawal:

• 10% TDS if PAN is submitted.
• 34.608% if PAN is not submitted.

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How to Claim EPF in Case of Death

• Nominee Claim:

• Submit the death certificate, nominee details, and claim form via the EPFO portal.

• EDLI Benefits:

• Provides a lump sum amount to the nominee, up to7 lakh.

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Common FAQs

• How to find the nearest EPFO office?

• Visit the EPFO website and use the "Locate an EPFO Office" tool.

• When can I withdraw my EPF?

• After retirement, unemployment, or specific purposes like medical treatment or home purchase.

• Is it mandatory for all employers to register with EPFO?

• Yes, for establishments with 20+ employees.

• How is interest calculated on EPF?

• Compounded annually on the monthly closing balance.

• How to track EPF claim status?

• Log in to the UAN portal or use the Umang app to track claim progress.

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