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.
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.