[Updated July 2015]
Every Employee in India should have an Employee Provident Fund if He / She has a salary above Rs. 6500/-. If the Employer does not have it, employee has right to ask for EPF in his name. Generally, Employer has to pay the equivalent amount for EPF as much as the employee pays.
The employer shall pay the contribution payable to the EPF, EDLI and Employees’ Pension Fund in respect of the member of the Employees’ Pension Fund employed by him directly by or through a contractor.
The government will continue to contribute 1.16% upto the actual wage of maximum Rs.6500 per month towards Employees’ Pension Scheme. The employer’s share in the Pension Scheme will be Rs.541.
Under Employees’ Deposit-Linked Insurance Scheme the contribution @ 0.50% is required to be paid upto a maximum limit of Rs. 6500.
Who is Eligible for Employee Provident Fund ?
For New Entrants:
- An employee is eligible for membership from the day he joins the company who has enrolled for EPF Scheme
- If an Employer has equal to or more than 20 employees, it is mandatory for him or to join the Employee Provident Fund Scheme.
- If the employee’s emoluments exceed Rs. 6,500/- per month, he has the option to join the Scheme(s) with the consent of employer.
- Declare previous employment details, if any, in Form No. 11 to the employer.
- On becoming a member of the Schemes file details in Form No. 2 ( family particulars/ nominations) through the employer.
- Rate of contribution payable by a member shall be @ 12% of his emoluments.
- A member can contribute statutorily over and above the prescribed rate.
For Existing Members:
- Any change in the family status, such as, –
- marriage of the member.
- additions / deletion in the family.
- Legal adoption of the children.
- Change of nominee, is to be filed in Form No. 2 through the employer.
- In the event the member is holding a Scheme Certificate (under EPS, 95), he should surrender the same to the concerned EPFO office, through his employer.
- A member is entitled to various benefits & facilities such as withdrawals, advances, pensions, death insurance etc.
New Scheme for Dormant Accounts
Did you know that as of the last financial year Rs 26,496 crore of PF money was with the Employees’ Provident Fund Organisation (EPFO) in inoperative accounts. Now, the EPFO has asked field offices to identify the beneficiaries of inoperative PF accounts and settle those by making payments or transferring money to their active accounts. To quicken the process, EPFO has an online helpdesk.
This new facility is meant to help members trace their PF numbers or find the total fund accumulated. The biggest problem with subscribers is that they don’t remember their account numbers, said financial planners.
You just need to login to website www.epfindia.com – Under the section ‘for employees’, click on link ‘Inoperative A/C Helpdesk System’. First, the subscriber needs to key in the problem he or she is facing and then fill details such as the name of the employer, date of joining and leaving the company, personal details and so on. Once these are done, you will receive a reference number. You need to keep this reference number.
The EPFO officers will then get in touch with you to verify. After verification, you will be able to transfer your PF balance into your account.
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