EPFO pension hike: The pensioners of the Employees Provident Fund Organisation (EPFO) in Maharashtra protested for a pension hike. The founder president of the Nashik District EPFO Pensioners Federation Raju Desle led the protest. Also, the EPFO pensioners protested to increase the pension amount to Rs 9,000 from the previous amount.
EPFO pension hike: The pensioners of the Employees Provident Fund Organisation (EPFO ) in Maharashtra protested for a pension hike. On Tuesday, EPFO pensioners staged a demonstration outside the local office in Satpur area pressing for their demands.
The founder president of the Nashik District EPFO Pensioners Federation Raju Desle led the protest. The EPFO pensioners protested to increase the pension amount to Rs 9,000 from Rs 1000. As per the protestors, this sum would better reflect their years of contribution.
Additionally, the protestors also demanded essential support including dearness allowance to combat the increasing cost of living, free govt medical services, and inclusion in the food safety act.
EPFO’s private sector employees have long been demanding an increase in their minimum pension, which has remained Rs 1,000 per month since 2014.
EPF members contribute 12 per cent of their basic salary towards the provident fund, and employers match this contribution. 8.33 per cent is allocated to the Employees’ Pension Scheme (EPS) from themployer’s share. On the other hand, 3.67 per cent goes towards the EPF scheme.
EPFO Minimum Pension Increase 2025
A delegation of EPS-95 retirees met Finance Minister Nirmala Sitharaman to press for their long-standing demand of a minimum pension of Rs 7,500 per month plus dearness allowance (DA) before Union Budget 2025 announcement.
The EPS-95 National Agitation Committee however stated that the finance minister assured them that their demands would be considered with sympathy. The pensioners and advocacy groups have criticised the inadequacy of the current pension scheme for several years.
They have argued that the Rs 1,000 monthly pension is insufficient, especially for those who have spent around four decades contributing to the fund. Moreover, with increasing inflation and medical expenses, the pressure is mounting for the government to address these demands.
The Employees’ Provident Fund Organization (EPFO), under the Ministry of Labour and Employment, Government of India, has announced a significant change vide circular No: WSU/E- 49885/1333 dated 28th May, 2024 regarding the mandatory uploading of cheque leaf images for claim processing. The Employees Provident Fund Organisation (EPF) has announced that it has relaxed the requirement of mandatory uploading of the image of cheque leaf, attested bank passbook for certain eligible cases.
EPFO eases the requirement to upload image of a cheque leaf and an attested bank passbook. This move will help to expedite the settlement of claims filed online and reduce the number of claims that are rejected.
Purpose:
This will help to expedite the settlement of claims filed online and reduce the number of claims that are rejected because the image of the cheque leaf/attested bank passbook was not uploaded when the claim was filed online.
Step 2: Satisfy oneself that KYC and service eligibility conditions as mentioned against his UAN are correct and complete.
Step 3: Select the relevant claim.
Step 4: Authenticate using OTP received against the mobile registered with UIDAI to complete the online claim submission.
“According to the EPFO circular dated May 28, 2024, “With a view to facilitate the speedy settlement of claims filed online and to reduce the rejection of claims due to the reason of non-uploading of the image of cheque leaf/ attested bank passbook while filing claims online, it has been decided with the approval of the CPFC to relax the requirement of mandatory uploading of the image of cheque leaf/ attested bank passbook for certain eligible cases based on certain validations which include Online Verification of the Bank KYC by concerned Bank/NPCI, Verification of Bank KYC by the employer using DSC, Seeded Aadhaar Number verified by UIDAI among others.”
In all such cases, the following message is displayed in the last part of the PDF of the claim.
This new relaxation has been deployed in the Field Office application on 09/05/2024 and an email notification on this had also been sent to all ZOs on 13/May/2024.
The claims being eligible for this relaxation would be soon color coded for ease of identification of such claims by the Dealing Hands to prevent any inadvertent returning of such claims due to the reason of NON uploading of the image of the cheque leaf/bank passbook, alone.
Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.
The Central Government had launched Employees’ Pension Scheme, 1995 in exercise of the powers conferred by Section 6A of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952). The EPS’95 scheme applies to all the employees of factories and other establishments to which the Employees Provident Funds and Miscellaneous Provisions Act, 1952 applies. Employee Pension Scheme (EPS) came into force on 16th November 1995.
The government has, for the first time, started providing a minimum pension of Rs 1,000 per month to the pensioners under EPS, 1995 from September 1, 2014 by providing additional budgetary support keeping the widespread demands although there is no provision in the Scheme for budgetary support
Eligibility Criteria:
He should be a member of EPFO.
For availing the pension benefits under the EPS 95 Pension scheme the employee must serve a minimum of 10 years in service.
The age of retirement is 58 years.
Member can also withdraw his/her EPS at a reduced rate from the age of 50 years
If an employee has completed less than 10 years of service. but more than 6 months’ service, then he/she can withdraw the EPS amount on being unemployed for more than two months
A member’s family also becomes eligible for Pension benefits in case of death of the member while in service.
Benefits:
1.EPFO has certain benefits, which are payable to orphans as per the EPS 95 scheme as mentioned below in brief.
Pension amount is 75 per cent of monthly widow pension, with minimum of Rs 750 per month, each for two orphans at a time
The pension will be paid till 25 years of age
The pension will be paid lifelong if the person is suffering from any disability
2. Benefit provided in case of death of an employee, who was a member of the scheme at the time of death – Benefit amount 20 times of the wages. Maximum benefit of 6 lakh.
3. Pension to nominee for entire life paid on death of member, in case there is no family, as defined under EPS’ 95.
4. In case a member is not able to remain in service for 10 years before attaining the age of 58 years, he can withdraw the complete sum at the age of 58 years. It is worth mentioning here that he will not get the monthly pension benefits after retirement.
5. Lifelong pension equal to monthly widow pension paid to dependent father or motheron death of member, provided there is no family or nominee of member.
Note: In case of any details and query, the EPFO members can login to the official website of EPFO at www.epfindia.gov.in
Latest News: The RSS-affiliate trade union BhartiyaMazdoorSangh has urged the government to increase the minimum pension under the Employees Pension Scheme, 1995 to Rs 5,000 a month and link the Ayushman Bharat medical schemes to all EPS-95 pensioners while exempting senior citizens from income tax. The current minimum monthly pension under the EPS 95 is Rs 1,000.
“Ayushman Bharat medical scheme should be extended all EPS 95 pensioners and any hike in minimum pension in EPS 95 should be universal hike to all 65 lakh pensioners,” it said.
How to Check Your EPS Amount
A member can check the amount accumulated in his Employees’ Pension Scheme (EPS) account in his EPF Passbook. The last column in the passbook shows the EPS contribution deposited by the employer every month in the account of the member. The passbook can be downloaded from the EPF Passbook portal after logging into the account using UAN and password.
How is EPS 95 Pension Calculated?
The monthly pension amount an employee receives depends on the pensionable service of the employee and pensionable salary.
Here is the formula for calculating any member employee’s monthly pension income:
Member’s Monthly Pension = (Pensionable salary x Pensionable Service)/70
Pensionable Salary
It is the average monthly salary that an employee receives in the last 60 months before they decide to exit the Employees’ Pension Scheme. This is as per the judgement of the Supreme Court on November 4th 2022. Earlier, it was the average monthly salary of the last 12 months of the employee’s participation in the scheme.
Pensionable Service
This refers to the total number of years for which contributions were made to the EPS account. According to the law, pensionable service must be rounded off to the nearest year. This means that in case you serve for 6 months or more, then it will be treated as a year. If it is less than 6 months, the year will not be counted. If you superannuate at the age of 58 years and have served for more than 20 years, then your service tenure will be increased by 2 years.
Employees who are eligible for EPS pension can avail a number of benefits. Let us take a look at them:
Pension From the Age of 58
An EPS member becomes eligible for a pension from the age of 58 as soon as they retire. However, to become eligible for getting a pension, they need to compulsorily contribute for 10 years before turning 58. After retirement, they will receive an EPS pension scheme certificate. This certificate is a must for filling up form 10D to withdraw monthly pension.
Pension in Case of Disability
In case a member of EPS becomes disabled completely as well as permanently, then they will receive a monthly pension. This is irrespective of whether they have served for the pensionable period or not. This member will receive a pension starting from the date of permanent disability and for their entire life.
The employer must deposit funds in this person’s EPS account for at least a month to become eligible for a pension. However, the employee will have to undergo a medical test to prove the fact that they are unfit for the job that they did before becoming disabled.
Pension in Case of Employee’s Death
An EPS member’s family will receive family pension benefits in case of death of the employee under 3 circumstances:
If a member completes 10 years of service and dies before the age of 58 years.
In case a member dies after they start receiving a monthly pension.
If a member dies while still serving and the employer has at least once deposited funds into their EPS account.
Withdrawal Facility Before Becoming Eligible for Monthly Pension
In case a member of EPS is unable to remain in service for 10 years due to some reason and reaches the age of 58, they can withdraw the entire some they have invested by filling up form 10C. However, in this case, they will not receive any monthly pension.
Disclaimer:Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.
PF, or Provident Fund, is a contribution-based savings scheme where both the employee and the employer contribute to create a monetary fund to cater to post-retirement necessities. The corpus created can be accessed or withdrawn by the employee subject to certain Provident Fund withdrawal rules.
The Employee Provident Fund in India is administered by a statutory body, Employees’ Provident Fund Organisation, offering a financial backup for Indian residents employed in the organised sector.
Reasons
Eligibility
Withdrawal Limit
Housing Loan for construction or addition of house/purchase of site/flat
Minimum 60 months of service
Up to to 36 months of his/her basic along with DA/ the total of employee and employer shares with interest/ the total cost of the house
Marriage of self/son/daughter/brother/sister or for post matriculation education of children
Partial withdrawal from EPF accounts is permitted in the case of an emergency such as medical emergency, house purchase or construction, and higher education. Partial withdrawal is subject to limits depending on the reason. The account holder can request online for partial withdrawal.
The EPF corpus can be withdrawn if a person faces unemployment before retirement due to lock-down or retrenchment.
The EPF subscriber has to declare unemployment in order to withdraw the EPF amount.
As per the new rule, EPFO allows withdrawal of 75% of the EPF corpus after 1 month of unemployment. The remaining 25% can be transferred to a new EPF account after gaining new employment.
As per the old rule, 100% EPF withdrawal is allowed after 2 months of unemployment.
Tax is deducted at source on premature withdrawal of the EPF corpus. However, if the entire amount is less than Rs.50,000, then TDS is not applicable. Keep in mind, if an employee provides PAN with the application, the applicable TDS rate is 10%. Otherwise, it is 30% plus tax. Form 15H/15G is a declaration form, which states that a person’s total income is not taxable and thus, TDS is avoidable.
An employee does not have to await approval from the employer for EPF withdrawal anymore. It can be done directly from the EPFO, provided the employee’s UAN and Aadhaar are linked, and the employer has approved it. EPF withdrawal status can be checked online.
Steps for EPF Withdrawal Online
Employees can make a PF withdrawal claim on the EPFO member portal by following the steps mentioned below. As already mentioned, if the employee has seeded his/her Aadhaar card details with one’s UAN account, they do not require the attestation of their employer to make a PF withdrawal.
Step 1: Visit the EPFO member portal.
Step 2: Choose the ‘For Employees’ option under the ‘Our Services’ tab.
Step 3: On the new webpage click on the ‘Member UAN/Online Service (OCS/OTCP)’ option under the ‘Services’ tab of the ‘For Employees’ page.
Step 4: This will redirect you to a new webpage. Log in to the portal using your UAN, password, and the Captcha code.
Step 5: Click on the ‘KYC’ option under the ‘Manage’ tab.
Step 6: You will be redirected to a new webpage. Scroll down to the bottom of the page to find the ‘Digitally Approved KYC’ section and check your KYC details. Ensure the details are correct.
Step 7: Click on the ‘Online Service’ tab from the top menu to proceed with the withdrawal if all the KYC details are correct.
Step 8: Click on the ‘CLAIM (FORM-31, 19 & 10C)’ option from the drop-down menu.
Step 9: You will be redirected to a new webpage with an automatically generated ‘ONLINE CLAIM (FORM 31, 19 & 10C)’ form.
Step 10: You will be required to enter the Last 4 digits of your registered bank account number and verify the same.
Step 11: After the verification of the bank account, a ‘Certificate of Undertaking’ will be generated. Click ‘Yes’ on the certificate pop-up to proceed.
Step 12: Click on the ‘Proceed for Online Claim’ option when prompted.
Step 13: For online fund withdrawal, select the ‘PF ADVANCE (FORM – 31)’ option from the drop-down menu provided next to the ‘I want to apply for’ option.
Step 14: A reason for a claim has to be selected from the drop-down options provided next to the ‘Purpose for which advance is required’ option. The fields provided for the address of the employee and the amount for an advance are also required to be filled in.
Step 15: Click on the checkbox at the end of the page and submit your withdrawal application.
Step 16: You might be required to upload certain scanned documents (depending on the nature of the withdrawal).
Step 17: Once the employer approves the withdrawal request, the withdrawal amount will be withdrawn from the EPF account and will be deposited to the respective bank account. Once the claim has been settled, you will receive an SMS notification on your registered mobile number.
Steps to Enter Exit Date and Withdraw Your PF Easily
If the withdrawal of your Provident Fund (PF) is delayed, then it may happen due to the exit date not being mentioned. Hence, in order to avoid this, The Employees’ Provident Fund Organisation (EPFO) has come up with a facility in the Unified Portal where the employee can enter the date of exit from the previous employer by himself. Previously, only the employer could enter the exit date, but now even employees can enter the date of exit.
You can change the exit date by logging in to the UAN portal using your Unified Account Number (UAN) and password. However, you must check whether the exit date is mentioned by clicking on ‘Service History‘ under ‘View‘ on the top panel.
Given below are the steps you will have to follow in order to enter the Exit Date:
Step 2: On the top panel, click on ‘Manage’ and click on ‘Mark Exit’ located under it
Step 3: From the drop-down option choose the employer
Step 4: You will be directed to a new page where you will have to enter your date of birth, date of joining, and date of exit. Mention the date of exit as the one mentioned in your resignation letter if your exit date is before the 15th day of the month
register a Grievance?
Step 1: You will have to go to the EPFO Grievance Management System and click on ‘Register Grievance‘.
Step 3: You will need to choose your status from the drop-down option.
Step 4: Next, you will have to key in your PF number, your establishment, the address of establishment, the name of the complainant, contact details, grievance details, etc. You can then enter the captcha code and click ‘Submit‘.
Types of EPFO Grievances
You can register a grievance when you face issues associated with:
Return of cheque or misplacement of cheque
Scheme certificate (10C)
Transfer of your PF accumulations (F-13)
Settlement of your pension (10-D)
Provision of PF balance or PF slip
Others
Criteria for PF Withdrawal
1. When an employee is still under service
If he/she wishes to take an advance from the PF account, the composite claim form (Aadhaar/Non-Aadhaar) has to be submitted.
If he/she wishes to finance his/her LIC policy through the PF account, Form 14 has to be submitted.
If he/she has crossed 58 years of age and wishes to claim the pension fund.
Form 10D should be applied for a monthly pension if 10 years of eligible service has been completed.
The composite claim form (Aadhaar/Non-Aadhaar) should be submitted if 10 years of eligible service has not been completed.
2. When an employee switches the job
And wishes to transfer EPF account, Form 13 should be applied
When an employee leaves an establishment and doesn’t join another
He/she can make a PF and pension fund claim using the composite claim form (Aadhar/Non-Aadhar)
Is above the age of 58 years, and has completed 10 years of eligible service, he/she can make a PF claim using the composite claim form (Aadhaar/Non-Aadhaar) and a pension claim using Form 10D
3. When an employee leaves an establishment due to a physical disability
He/she can make a PF claim using a composite claim form (Aadhaar/Non-Aadhaar).
He/she can make a pension claim using Form 10D.
Is above the age of 58 years and has not completed 10 years of eligible service, he/she can make the PF and pension claim using the composite claim form (Aadhaar/Non-Aadhaar).
4. When an employee is deceased while in service
Before the age of 58 years while still in service, the nominee/heir/beneficiary can apply for the PF settlement using Form 20, monthly pension using Form 10D, and EDLI (Employees’ Deposit Linked Insurance) amount using Form 5IF.
After the age of 58 years and having completed 10 years of eligible service, the nominee/heir/beneficiary can claim the PF using Form 20, the pension using Form 10D, and the EDLI amount using Form 5IF.
After the age of 58 years and had not completed 10 years of eligible service, the nominee/heir/beneficiary can make the PF settlement using Form 20, withdraw the pension using the composite claim form (Aadhaar/Non-Aadhaar), and claim the EDLI amount using Form 5IF.
5. When an employee is deceased
Before the age of 58 years, the nominee/heir/beneficiary may claim the PF amount through Form 20, and the pension amount through Form 10D.
After the age of 58 years and having completed 10 years of eligible service, the nominee/heir/beneficiary can claim the PF amount using Form 20, and the pension amount using Form 10D.
After the age of 58 years and had not completed 10 years of eligible service at the age of 58 years, the nominee, heir or beneficiary can apply for a final PF settlement using Form 20 and for the pension fund using the composite claim form (Aadhaar/Non-Aadhaar).
Reasons for PF Withdrawal
The situations under which you can go ahead and withdraw money from your EPF while you are still working
Medical Treatment
Marriage purposes
Construction of house or purchase of property
Repaying the existing home loan
Education purposes
Alterations or repairs for your house
1. Medical Treatment
IYou can withdraw money from your EPF account to meet the financial requirements of a medical treatment, provided it meets the following conditions:
Any major surgery in a particular hospital
The hospitalisation period is more than a month
The individual is suffering from Tuberculosis, Leprosy, Cancer, Mental Derangement, Paralysis, heart problems, etc. and is on leave that has been granted by the employer for the mentioned illness
You can actually withdraw the money in EPF at any given time during the period of your service. It is not needed that you to have completed a specific number of years in the organisation to claim that money. You can always draw the money for treatment purposes, even if you have completed one or two years in your present organisation.
You must also remember that the maximum amount that can be availed by you is your six months’ salary. This amount may not be very big, but it will offer you some help that you might need in a crisis situation. Not only can this advantage be taken anytime, but also, it can be enjoyed as many times as you want. Thus, your PF will save you for sure.
Certain documents must be provided by you along with Form 31
The doctor must certify that hospitalisation for a period of one month is required in this case. Also, if there is a requirement for surgery, that must also be stated by the doctor in that certificate
2. Marriage Purposes
Money from your EPF can be withdrawn for an occasion like marriage in case you have already completed seven years of your service life. You can use up to 50 % of the amount that is there in your EPF account, and you can enjoy this advantage for a maximum of three times. So, let us consider that you have around INR 5 lacs in your EPF account. However, you must not calculate the entire amount when you wish to withdraw it for your marriage purposes. Just your own contribution towards EPF along with the interest accumulated on it is supposed to be calculated by you. Applicable cases are as follows.
Your own wedding
Wedding of your child
Wedding of your sibling
3. Construction of house or purchase of property
You can withdraw some money from the EPF when you are planning to purchase a house or construct a house. However, you must understand a few rules first.
The land or house that you wish to purchase must be on your name, your spouse’s name or jointly in both your names. Any other combination will not be allowed
You must have completed a period of 5 years in your service
The maximum amount that you can avail from your EPF account is 24 times your monthly salary
If the property that you intend to purchase is in question, then it should first become free from all related disputes. The property must be a registered one and proof of registration must also be provided.
4. Repaying the existing home loan
If you have taken a home loan and wish to prepay it, then you may withdraw some amount from your EPF. But to avail this benefit you must have completed ten years of your service. However, you can only avail this advantage once in your entire lifetime. Also, you can either use the EPF for purchasing a house or property or for repayment of your present home loan. You cannot avail money for both of them.
The property for which you are making the payment must be in your name, your spouse’s name or jointly held by both of you. Many people have joint home loans with their siblings or parents. In such cases, you will not be able to avail this particular benefit. An amount equivalent to 36 times your monthly salary can be availed from the EPF for the repayment of the existing home loan.
5. Education purposes
Some money from your EPF can be withdrawn for educational purposes. This advantage can be availed only for post matriculation educational expenditures. This means, if you admit your daughter or son to any university or college then you will be able to draw money from the EPF account. You must complete seven years of your service before you can avail this benefit.
6. Alteration or Repairs of your house
After several years of staying in a house, you might think that it needs some repairs. Some alterations can also be an option that will make things convenient for you. But this is a costly affair and could very well burn a hole in your pocket. You can avail some money from the EPF for this purpose. But first you need to know some rules.
You can withdraw and enjoy a maximum of 12 times your monthly salary
From the date of construction, the house that you wish to repair must be at least five years old
You must have completed a period of ten years in your service life
This particular facility can be availed only once in an entire lifetime
The house that you wish you repair must be under your name, your spouse’s name or jointly under both of your names
Other reasons for Withdrawing Money from EPF
If the member has reached the age of retirement.
If they have been unemployed for a duration of more than 60 days or two months.
If they wish to move permanently abroad.
If a female employee is resigning due to reasons such as pregnancy, childbirth, getting married, etc.
Limits of EPF Partial Withdrawal
Employees can make withdrawals based on the below-listed circumstances. Listed below are the withdrawal purpose, the minimum service requirement to be eligible to make the withdrawal, the PF withdrawal limit and the relations for whom the employee can make the withdrawal.
PF withdrawal reason
Minimum service
PF Withdrawal Limit
Relations
House Construction or purchase of plot
5 years
24 times the monthly salary for purchasing/36 times the monthly salary for purchase and construction, or the cost of the property or the total of employee and employer’s shares with the interest amount, whichever is less
The Central Government had launched Employees’ Provident Fund (EPF) which is a retirement benefit scheme maintained by the Employees’ Provident Fund Organization (EPFO). The employee and the employer contribute to the EPF scheme on monthly basis in equal proportions of 12% of the basic salary and dearness allowance as mentioned under the provision of the law. The Indian government has approved this scheme for salaried employees.
The Employees’ Provident Fund (EPF) gives an easy access to EPF loan facility, allowing PF account holders to swiftly withdraw money from their savings when needed. Employees / PF account holders can withdraw some money from their PF accounts and use it as a personal loan. But it is not like the typical personal loan where the person has to repay the amount to the bank, the loan is non-refundable.
Monthly contribution of 24% as mentioned above (equally contributed by employer & employee both @ 12%) makes the employee eligible to avail the loan facility or withdraw funds from PF account after the thorough verification process conducted by the EPFO. It is imperative to note that EPFO usually considers loans as withdrawal instead of an advance.
How to get a loan against the provident fund?
For getting a loan against the PF an employee has to apply for it on the official portal of EPFO. The step-by-step process is as follows.
Login on the member interface of the EPFO unified portal using your credentials — Universal Account Number (UAN) allotted by EPFO and password.
Click on Manage > KYC and check that your KYC details are correct.
After login, go to the claims section under online services and verify your account details by entering the last four digits of your bank account number and confirm it by clicking on ‘proceed for online claims’.
Click on the drop-down menu and select Advances/Form 31 and then select the purpose of withdrawal; enter the amount you require and upload a scanned copy of your cancelled cheque followed by your address and other details that are required.
Lastly, verify the process via Aadhaar authentication by providing the OTP received by you and submitting the request for a loan.
The loan amount will be credited within 15 to 20 days after employer approves the withdrawal request.
PF loans do not have an interest rate but a specific cost to pay.
Documents required to avail of an EPF loan
Aadhaar card for verification
Cancelled cheque to verify bank details
Form 19 for PF final settlement
Form 31 for PF partial withdrawal
Form 10-C: It is required for pension withdrawal benefit.
Please note the additional requirements:
Universal Account Number (UAN) must be activated
The mobile number used to activate the UAN should be active for receiving OTP
Your Aadhaar Card details should have been seeded in the EPFO database.
OTP based facility must be availed for verifying eKYC from UIDAI while submitting the claim.
Bank account details and IFSC code should be seeded in the EPFO database.
How to check the Status of EPF Advance Claim
Step 1: Visit the EPFO website.
Step 2: Go to the “Services” tab and click “For Employees”.
Step 3: Go to the “Services” section and click on “Know Your Claim Status”.
Step 4: Enter your UAN and password to login.
Step 5: Provide your EPF account number, establishment code and state of your PF office and check the status of your claim.
The govt. has made several rules, to comply with to get the loans sanctioned, to prevent frequent withdrawals from PF contributions so that it can serve its basic purpose of accumulating savings for the retirement of employees.
Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.
The Employees’ Provident Fund Organisation (EPFO) has released an Excel utility-based calculator to estimate dues that one must pay from their EPF balance or their own savings if necessary.
Employees can now determine how much they must contribute in order to obtain a higher pension from the Employees’ Pension Scheme (EPS).
The EPFO higher pension application deadline has been extended by an additional 15 days to July 11, 2023.
How to download EPFO’s Excel calculator for higher pension
Employees must know their EPF plan enrollment date in order to utilise this calculator. If joining the EPF system later than November 1995, the employee must enter the wage amount starting on that date.
Step 2: Click on “ Pension on Higher Salary: Exercise of Joint Option under Para 11(3) and Para 11(4) of EPS 1995 on or before July 11, 2023.
Step 3: Click on Calculator for estimating due for Pension on Higher Wages Step 4: Read the disclaimer and click on ‘Download Calculator’
There are 5 sections which contain details of Wage Entry, Calculation sheet (to be paid by member), Summary under different sheets.
According to the EPFO website disclaimer, “The dues calculated through the calculator is a ball park estimate. Actual dues calculated on the basis of records by the concerned Regional Office of EPFO will be authentic.”
How to use EPFO’s Excel calculator Employees must have ready access to all of their paychecks dating back to the day they joined the EPS scheme before utilising this calculator. This is so that the employee can manually enter his or her monthly wage information into the calculator. According to the EPF laws, the base pay and any dearness allowance are regarded as “salaries” for the purposes of calculating monthly contributions to the EPS and EPF accounts.
Thus, an employee must manually enter basic salary data into the Excel calculator using information from your pay slips. After entering the information, the calculator automatically does additional computations. Additionally, the excel-based tool will determine the entire interest accrued on this unpaid contribution until March 31, 2023, using the historical EPF interest application for the relevant months. If the employee’s EPF account has a sufficient balance, both of these sums will be collected and paid to the EPS account.
The summary of the total amount that will be transferred from the EPF account, along with the interest, to the EPS account is displayed on the third tab of the Excel calculator. Its headings are total wages, difference of contribution, interest and total.
Note that the amount deposited in the EPF account until March 31, 2023, will be calculated by the Excel calculator till FY 2022–2023 only. Depending on the date of the payment, it displays the total amount that must be paid till FY 2022–23 as well as the additional amount that must be paid for the current fiscal year (2023–24). Also, note that depending on the amount placed in the EPS account, the amount due for the current fiscal year may change.
The Employees Provident Fund Organisation (EPFO) has released fresh details for scrutiny of information and wage details submitted by the employee and employer for higher pension.
In a circular dated 23rd April 2023, the EPFO said that the applications and joint options for higher pension will be examined by the field office. In case the requirements are complete, the wage details submitted by employers will be verified with the data available with the field offices. In case of data mismatch, employees and employers will be given a one-month time to provide complete information.
“Applications/Joint options will be examined by Field. In case, the requirements are complete, the wage details submitted by the employers will be verified with the data available with the field offices,” the EPFO said.
“The cases where FO details and employers’ details match, the dues will be calculated and an order will be passed by APFC/RPFC-II/RPFC-I for depositing/transferring the dues. The cases where there is a mismatch, the same will be informed to the employer and the employee/pensioner by APFC/RPFC-II. They will be given a time of one month to complete the information,” it added.
When application is not approved by the employer
The EPFO said that in case the submitted application form/join option is not approved by the employer, before any rejection, “an opportunity will be given to the employer for providing any additional proof or evidence or correct any mistakes/errors (including those made by employees/pensioners). Such Opportunity will be for a period of one month and under intimation to the employees/pensioners.”
When submitted information is erroneous
The EPFO further said that in cases where the submitted information is not complete or seems erroneous or any information in application/joint option for needs correction request or not found eligible, “APFC/RPFC-II will seek information from the employers under information to employees/pensioners within one month.
If complete information is received, the case will be processed. However, if the complete information is not received then the APFC/RPFC-II/RPFC-I will pass the order on merit, the EPFO said.
Grievance Redressal
Applicants can register any grievance related to higher pension applications on EPFiGMS after submission of the request form and payment of due contributions, if any.
“The registration of such grievances shall be under specified category of higher pension with reference to Supreme Court judgement dated 01.11.2022. All such grievances shall be monitored by the Office in-Charge of Regional Office and Zonal Office,” the EPFO said.
Employees’ Provident Fund (abbreviated as EPF) is a popular retirement savings scheme for all employees in India – either on a mandatory or a voluntary basis. It falls under the aegis of the Employees Provident Fund Organisation (EPFO), a statutory body. It periodically reviews the PF withdrawal rules to make the process more seamless and improve the experience of its million+ subscribers. Typically, online PF withdrawal could take up to 3 working days and the offline process could take up to 20 working days. Let us now look at the rules for 2023.
EPF Withdrawal Rules 2023
Planning to withdraw a portion of your PF corpus? Well, here are some basic rules you need to be aware of:
You cannot withdraw your PF funds, fully or partially, until the time you are employed.
You can withdraw up to 75% of your funds if you are unemployed for at least one month and the remaining balance if you are unemployed for two months or more.
If you are planning to withdraw ₹50,000 or more from your corpus within 5 years of opening your EPF account, the withdrawal will attract a TDS of 10% (provided you have a valid PAN card in India) or 30% (if you don’t have a PAN card).
You can avoid TDS deduction by producing Form 15H or Form 15G.
You could get a loan against your PF savings, provided you have been in continuous service for a specified number of years.
You don’t need to withdraw the balance from your old PF account to your new one when you change jobs. The money can be transferred, provided your Universal Account Number (UAN) is active and you have submitted the relevant forms.
You can withdraw your full PF balance if you have been unemployed for at least 2 months or if the joining date for your new job is more than 2 months after your last working day at your previous organisation.
Probable Reasons for PF Withdrawal
You can withdraw PF, provided you satisfy some conditions. Here are some reasons for which you can withdraw your PF funds:
1. For Educational Purposes
A PF account holder can withdraw up to 50% of their total contribution to their Employee Provident Fund (only the employee’s contribution). You can use this amount to pay for the education of your children after class 10 as well as for your own higher education.
2. For Medical Treatment
The period of hospitalisation must exceed a month.
You must be admitted to the hospital for any major surgery.
The individual should be on a leave approved by the employer for a disease, such as cancer, tuberculosis, paralysis, leprosy, a heart problem, or mental issues, etc.
You can withdraw this money at any time during your service period. For this, you do not need to complete a number of years of service in your present organisation. The maximum amount that you can withdraw is your six months’ salary. This amount can be used for medical treatment of self or family.
3. For Repaying Existing Debt
You can withdraw an amount equivalent to 12 times your monthly salary from your EPF to repay your existing home loan. However, you will have to complete 5 years of continuous service in order to be eligible.
The amount can be used to repay your present home loan or purchase a property or house. In order to avail the loan, the house must be in your name, your spouse’s name, or owned jointly. This benefit cannot be availed if this is not the case.
4. During Unemployment
Any PF account holder can withdraw 75% of the accumulated amount if they have been unemployed for more than a month after relinquishing employment. If the unemployment period exceeds 2 months, the remaining 25% can also be withdrawn.
Some other reasons for withdrawal might be:
If the member reached the age of retirement.
If a female employee is resigning to get married, or for pregnancy or childbirth.
If the individual is planning to move abroad permanently.
Only a year is left before retirement.
Due to natural calamities or cuts in electricity in the establishment or for investing in Varishtha Pension Bima Yojana.
5. For Marriage
You can opt to withdraw money from your EPF account to meet the necessary expenses for your wedding, wedding of a child, or wedding of a sibling. However, you can avail this benefit if you have completed at least seven years of continuous service. Up to 50% of the amount you have contributed towards your EPF account, and the interest accumulated can be utilised for a maximum of three times.
6. For Renovating Your House
The age of the house must be at least 5 years.
You can withdraw up to 12 months’ basic wage plus dearness allowance or an employee’s share with interest, whichever is lower.
You must have completed 5 years of continuous service.
The house that you wish to renovate must be in your name or your spouse’s name or jointly owned.
You can avail this facility only once in your lifetime.
7. For Construction or Purchase of a House
To opt for this facility, you must have completed at least 5 years of continuous service.
The house or land that you are purchasing must be in your name, your spouse’s name, or both. Any other combination is not permitted.
You can withdraw basic salary plus dearness allowance for up to 24 months.
There should be no legal disputes for the property in question. Further, you must provide proof of registration of the property to avail the benefits.
8. For Specially-Abled Individuals
According to PF withdrawal rules 2023, specially-abled account holders are eligible to withdraw 6 months’ basic salary and dearness allowance or the employee’s share of contribution along with interest, whichever is lower, to pay for their equipment.
Steps for EPF Withdrawal Online
Step 1: Visit the EPFO member portal.
Step 2: Choose the “For Employees” option under the “Our Services” tab.
Step 3: On the new webpage click on the “Member UAN/Online Service (OCS/OTCP)” option under the “Services” tab of the “For Employees” page.
Step 4: This will redirect you to a new webpage. Log in to the portal using your UAN, password, and the Captcha code.
Step 5: Click on the “KYC” option under the “Manage” tab.
Step 6: You will be redirected to a new webpage. Scroll down to the bottom of the page to find the “Digitally Approved KYC” section and check your KYC details. Ensure the details are correct.
Step 7: Click on the “Online Service” tab from the top menu to proceed with the withdrawal if all the KYC details are correct.
Step 8: Click on the “CLAIM (FORM-31, 19 & 10C)” option from the drop down menu.
Step 9: You will be redirected to a new webpage with an automatically generated “ONLINE CLAIM (FORM 31, 19 & 10C)” form.
Step 10: You will be required to enter the Last 4 digits of your registered bank account number and verify the same.
Step 11: After the verification of the bank account, a “Certificate of Undertaking” will be generated. Click “Yes” on the certificate pop-up to proceed.
Step 12: Click on the “Proceed for Online Claim” option when prompted.
Step 13: For online fund withdrawal, select the “PF ADVANCE (FORM – 31)” option from the drop-down menu provided next to the “I want to apply for” option.
Step 14: A reason for claim has to be selected from the drop-down options provided next to the “Purpose for which advance is required” option. The fields provided for the address of the employee and the amount for advance is also required to be filled up.
Step 15: Click on the checkbox at the end of the page and submit your withdrawal application.
Step 16: You might be required to upload certain scanned documents (depends on the nature of withdrawal).
Step 17: Once the employer approves the withdrawal request, the withdrawal amount will be withdrawn from the EPF account and will be deposited to the respective bank account. Once the claim has been settled, you will receive an SMS notification on your registered mobile number.
The Employees’ Provident Fund Organization (EPFO) is a scheme for salaried people that offers pension benefits after a specified amount of service. Thus, according EPFO regulations, 12 per cent of an employee’s basic income is deposited in EPFO, of which 8.33 per cent is set aside for the pension account and 3.67 per cent for the Employees’ Provident Fund (EPF).However, what happens if an employee leaves their job or takes a break mid-way? Do they lose out on their pension entitlement?
EPFO rules state that an employee’s job tenure is taken into account, even if they take a break mid-way. In other words, if a person rejoins their job after a gap of a few years, their previous years of service will be added to their current tenure. To avail of the pension scheme of EPF, an employee must have worked for a minimum of 10 years. If an employee changes companies, their Unique Account Number (UAN) remains the same and the duration of their total job tenure is calculated by removing any gaps in between.
Let’s take an example: If an individual works for a company for 7 years and takes a one-year break, followed by another 4 years of work, their total job tenure will be considered as 11 years. In this scenario, the employee will be entitled to EPF pension benefits. Moreover, if a person works for 9.5 years, they are eligible for a 6-month grace period, which is equivalent to 10 years, as per the rules of EPFO.
The EPFO scheme is an important financial instrument for salaried individuals, as it ensures pension benefits after retirement. It is important to note that the job tenure requirement for pension eligibility is a crucial aspect that every EPFO subscriber should be aware of. So, if you are an EPFO subscriber and have taken a break from your job, you can still avail of the pension scheme by ensuring a total job tenure of 10 years or more.
Employees’ Provident Fund Organization (EPFO) has begun the process of depositing interest into Employees’ Provident Fund (EPF) accounts. EPFO has assured subscribers that the full interest will be credited and there will be no loss. EPF subscribers may soon see the interest reflected in their accounts. To check whether the interest has been credited, subscribers can access their passbook, which displays details of their provident fund balance, online from EPFO’s website.
interest will be credited in full as it accrues and there will be no loss of interest. The clarification from EPFO comes after the Finance Ministry addressed concerns about the non-credit of interest in EPF accounts in October. According to the ministry, there was no loss of interest for any EPFO subscriber as of October 5 and the interest was being credited to all EPF accounts, but it may not be reflected in statements due to a software upgrade being implemented by EPFO to attribute the change in tax incidence.
The Central Board of Trustees (CBT), which is responsible for setting the interest rate for EPF accounts, announced an interest rate of 8.1% for the financial year 2021-22 in March. This rate will be deposited in EPF accounts when it is credited to the members. Interest is normally calculated on a monthly basis in EPF accounts, but it is credited at the end of the financial year. The transferred interest is added to the next month’s balance and then compounded to calculate interest on that month’s balance. All EPFO customers can expect to receive good news soon.
check the balance and interest in your Employees’ Provident Fund (EPF) account with the Employees’ Provident Fund Organization (EPFO), follow these steps:
Employees Provident Fund Organisation (EPFO) has issued a circular on December 29, 2022, to comply with the Supreme Court’s direction on higher pension for eligible employees. The circular issued lays down the eligibility conditions for employees to get higher pension and how they can apply for it online.
Who is eligible to receive higher pension as per EPFO?
As per the circular, only those employees are eligible who contributed to higher wages as mandated under the Employees’ Provident Fund (EPF) Scheme and have exercised their option for higher pension prior to their retirement but their request was explicitly denied by the EPFO.
Hence, the following pensioners can apply for higher pension: a) The pensioners who as employees had contributed on salary exceeding the then prevalent wage ceiling of Rs 5,000 or Rs 6,500; and
b) Exercised joint option under the Employees’ Pension Scheme (EPS) of the pre-amendment scheme while being members of EPS-95, and c) Their exercise of such option was declined by the EPFO.
Who are not eligible for a higher pension from EPFO?
The circular has explicitly clarified that certain employees will not be eligible for higher pension after the Supreme Court order dated November 4, 2022:
The employees who had retired prior to September 1, 2014, without exercising any option under paragraph 11(3) of the pre-amendment scheme have already exited from the membership thereof. (Therefore) They would not be entitled to the benefit of this judgement.
The employees who have retired before September 1, 2014, upon exercising option under paragraph 11(3) of the 1995 scheme shall be covered by the provisions of paragraph 11(3) of the pension scheme as it stood prior to the amendment of 2014.
How eligible pensioners can apply for higher pension The eligible pensioners are required to visit their concerned regional EPFO office along with a duly-filled-in application form and specified documents to apply for a higher pension.
The process of applying for a higher pension at the regional EPFO office is as follows: A) The request will be made in such form and manner as may be specified by the commissioner B) The application form for validation will contain the disclaimer as ordered in the aforesaid government notification C) In case of share requiring adjustment from provident fund to pension fund and if any, re-deposit to the fund, the explicit consent of the pensioner will be given in the application form.
D) In case of transfer of funds from exempted provident fund trust to pension fund of EPFO, an undertaking of the trustee shall be submitted. The undertaking shall be to the effect that due contribution along with interest-upto the date of payment, will be deposited within the specified period.
Further circulars will be issued in regard with how required amount will be deposited for higher pension, says the circular dated December 29, 2022.
Documents required to apply for higher pension
A pensioner is required to submit the following documents for evidence and further processing: a) Proof of joint option under Para 26(6) of the EPF scheme duly verified by the employer; and b) Proof of joint option under the proviso to erstwhile Para 11(3) duly verified by the employer; and c) Proof of remittance in provident fund account on higher wages exceeding the prevalent wage ceiling of Rs 5,000/Rs 6,500; and d) Proof of remittance in pension fund on higher wages exceeding the prevalent wage ceiling of Rs 5,000/Rs 6,500, if any, and e) Written refusal of APFC or any other higher authority of EPFO to such request/remittance.
What will happen once the application form is submitted According to the circular, once the eligible pensioner submits the application form, the EPFO authority i.e., the Regional PF commissioner will deal with it as follows:
Each application will be registered and digitally logged. The receipt number will be provided to the applicant.
The application will land into employer’s login whose verification with e-sign will be essential for further processing.
RPFC will cause each application to be converted into e-file, as far as, possible.
The concerned dealing assistant will examine the papers including the note on receipt of due amount in the pension fund, and mark the case to the section supervisor/account officer.
The concerned SS/AO will mark out any discrepancies and send it with the rule position to AFPC/RPFC-II who after due examination will put the case to Officer-in charge of Regional Office.
The Officer in-charge shall examine each case of pension on higher salary and dispose it by passing a speaking order that shall be intimated to the applicant through e-mail/post. Efforts will be made to intimate them through telephone/SMS.
If an applicant has any grievance, then a complaint can be raised on EPFiGMS after submission of his request form and payment of due contribution, if any.
Employees Provident Fund Organisation (EPFO) has issued a circular on December 29, 2022, to comply with the Supreme Court’s direction on higher pension for eligible employees. The circular issued lays down the eligibility conditions for employees to get higher pension and how they can apply for it online.
Who is eligible to receive higher pension as per EPFO?
As per the circular, only those employees are eligible who contributed to higher wages as mandated under the Employees’ Provident Fund (EPF) Scheme and have exercised their option for higher pension prior to their retirement but their request was explicitly denied by the EPFO.
Hence, the following pensioners can apply for higher pension: a) The pensioners who as employees had contributed on salary exceeding the then prevalent wage ceiling of Rs 5,000 or Rs 6,500; and
b) Exercised joint option under the Employees’ Pension Scheme (EPS) of the pre-amendment scheme while being members of EPS-95, and c) Their exercise of such option was declined by the EPFO.
Who are not eligible for a higher pension from EPFO?
The circular has explicitly clarified that certain employees will not be eligible for higher pension after the Supreme Court order dated November 4, 2022:
The employees who had retired prior to September 1, 2014, without exercising any option under paragraph 11(3) of the pre-amendment scheme have already exited from the membership thereof. (Therefore) They would not be entitled to the benefit of this judgement.
The employees who have retired before September 1, 2014, upon exercising option under paragraph 11(3) of the 1995 scheme shall be covered by the provisions of paragraph 11(3) of the pension scheme as it stood prior to the amendment of 2014.
How eligible pensioners can apply for higher pension The eligible pensioners are required to visit their concerned regional EPFO office along with a duly-filled-in application form and specified documents to apply for a higher pension.
The process of applying for a higher pension at the regional EPFO office is as follows: A) The request will be made in such form and manner as may be specified by the commissioner B) The application form for validation will contain the disclaimer as ordered in the aforesaid government notification C) In case of share requiring adjustment from provident fund to pension fund and if any, re-deposit to the fund, the explicit consent of the pensioner will be given in the application form.
D) In case of transfer of funds from exempted provident fund trust to pension fund of EPFO, an undertaking of the trustee shall be submitted. The undertaking shall be to the effect that due contribution along with interest-upto the date of payment, will be deposited within the specified period.
Further circulars will be issued in regard with how required amount will be deposited for higher pension, says the circular dated December 29, 2022.
Documents required to apply for higher pension
A pensioner is required to submit the following documents for evidence and further processing: a) Proof of joint option under Para 26(6) of the EPF scheme duly verified by the employer; and b) Proof of joint option under the proviso to erstwhile Para 11(3) duly verified by the employer; and c) Proof of remittance in provident fund account on higher wages exceeding the prevalent wage ceiling of Rs 5,000/Rs 6,500; and d) Proof of remittance in pension fund on higher wages exceeding the prevalent wage ceiling of Rs 5,000/Rs 6,500, if any, and e) Written refusal of APFC or any other higher authority of EPFO to such request/remittance.
What will happen once the application form is submitted According to the circular, once the eligible pensioner submits the application form, the EPFO authority i.e., the Regional PF commissioner will deal with it as follows:
Each application will be registered and digitally logged. The receipt number will be provided to the applicant.
The application will land into employer’s login whose verification with e-sign will be essential for further processing.
RPFC will cause each application to be converted into e-file, as far as, possible.
The concerned dealing assistant will examine the papers including the note on receipt of due amount in the pension fund, and mark the case to the section supervisor/account officer.
The concerned SS/AO will mark out any discrepancies and send it with the rule position to AFPC/RPFC-II who after due examination will put the case to Officer-in charge of Regional Office.
The Officer in-charge shall examine each case of pension on higher salary and dispose it by passing a speaking order that shall be intimated to the applicant through e-mail/post. Efforts will be made to intimate them through telephone/SMS.
If an applicant has any grievance, then a complaint can be raised on EPFiGMS after submission of his request form and payment of due contribution, if any.
Good news for employees. A high-level committee has proposed to increase the salary limit under the Employees’ Provident Fund Organization (EPFO). The committee has said that the salary limit should be increased from the existing Rs 15,000 to Rs 21,000 per month. The committee says that the government is considering it and it can be implemented from back date.
Who will get benefit?
If this proposal is implemented then about 7.5 lakh additional workers will be benefitted as they will also be covered under the scheme and will also adjust for the increase in wages as last amended in 2014. As per the Economic Times report, a senior government official said, “If this suggestion is accepted by the Central Board of Trustees of the EPFO, it will give relief to employers who are willing to immediately bear any additional financial burden.” are reluctant to do so.
Relief to the government exchequer
Actually, the employers had demanded this increase citing the deteriorating budget due to the outbreak of Corona epidemic. If the proposal is approved, then the exchequer will also get relief, as the central government currently pays about Rs 6,750 crore every year for the Employees’ Pension Scheme of EPFO. Let us tell you that the government contributes 1.16 percent of the total basic salary of EPFO subscribers for this scheme.
KE Raghunathan, who is on the Central Board of Trustees of EPFO, said that there is a general consensus within the EPFO that the same norms should be followed for providing social security under both EPFO and ESIC. The difference in norms under both the schemes should not deprive the workers of their social security benefits.
What are the rules regarding EPS now? When we start a job and become a member of EPF, then at the same time we also become a member of EPS. The employee gives 12% of his salary in EPF, the same amount is also given by his company, but a part of it 8.33 percent also goes to EPS. As we mentioned above that at present the maximum pensionable salary is only 15 thousand rupees, that means every month the pension share is maximum (8.33% of 15,000) Rs 1250.
Even when the employee retires, the maximum salary for calculating the pension is considered to be Rs 15 thousand, according to this, the maximum pension an employee can get under EPS is Rs 7,500.
This is how pension is calculated
One thing must be noted that if you have started contributing to EPS before September 1, 2014, then the maximum limit of monthly salary for pension contribution for you will be Rs.6500. If you have joined EPS after September 1, 2014, then the maximum salary limit will be 15,000. Now see how pension is calculated.
The Employees’ Provident Fund Organisation rolled out new norms for taxation and deductions on the employees’ retirement accounts. The statutory body directed that tax deducted at source (TDS) will be levied on the date of the credit of interest on PF accounts if they are not in final settlement or transfers.
The body introduced a new tax structure on PF contributions exceeding Rs 2.5 lakh for private-sector employees, while keeping the limit for government employees at Rs 5 lakh. Exceeding the limit will attract TDS in case of PF final settlement, transfer claims on transfer from exempted establishments to EPFO, and vice versa.
However, taxpayers must know that not everyone would have to pay TDS. As per EPFO guidelines, a TDS amounting to Rs 5,000 will have no deductions for Indian residents, however, the member’s individual tax Liability towards his total tax shall remain.
Moreover, if an employee has linked their PF account with a valid Permanent Account Number (PAN), the TDS rate will be 10 per cent. If not, the TDS rate would be 20 per cent. Notably, an individual can claim a TDS return by filing forms 26 Q and 27 Q of the Income Tax.
If someone fails to file a TDS return, they will be fined Rs 200 each day during which the failure continues, with the amount of fees not going beyond the amount of TDS.
So, to not pay double the amount of TDS, individuals must link their PF account with PAN. Here’s how:
Step 1: Visit your EPFO UAN Member e-Seva Portal and log in using your UAN number along with your password.
Step 2: Once logged in, click on the ‘Manage’ section available on the main menu.
Step 3: Under the ‘Manage’ section, click on KYC. You will be directed to a page with options to add your personal information such as bank account, PAN, Aadhaar, passport, driving license, election card, ration card, and national population register.
Step 4: Select the PAN section and add your unique PAN number.
Step 5: If your name and number match with the IT department records, your PAN is verified automatically. your PAN and PF account are linked, you can find the PAN info in your ‘Member Profile’ table.
The new rules concerning TDS structure are applicable to government and private sector employees on their contributions for the previous year 2021-22 and subsequent previous years. TDS is the same for international workers as it is for Indian workers.
The Central Government had launched Employees’ Pension Scheme, 1995 in exercise of the powers conferred by Section 6A of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952). The EPS’95 scheme applies to all the employees of factories and other establishments to which the Employees Provident Funds and Miscellaneous Provisions Act, 1952 applies. Employee Pension Scheme (EPS) came into force on 16th November 1995.
Key Amendments made from time to time:
The Employees Provident Fund Organisation (EPFO) has over the period of time, modified / updated / issues many of its policies which members have to follow:
1) Increase in wage ceiling from Rs. 6500/- to Rs.15000 per month from 01.09.2014.
2) Provision of a minimum pension of Rs. 1000 per month to the pensioners under EPS, 1995 from 01.09.2014 by providing additional budgetary support wherever the pension was falling short of Rs.1000 as per pre-defined formula for calculation of pension.
3) Restoration of normal pension after completion of fifteen years from the date of such commutation, in respect of those members who availed the benefit of commutation of pension under the erstwhile paragraph 12A of the EPS, 1995, on or before 25.09.2008 vide notification G.S.R.132(E) dated 20.02.2020.
4) An individual who joined the Employees’ Provident Fund (EPF) scheme, after September 1, 2014, cannot open an Employees’ Pension Scheme (EPS) account if his/her monthly salary exceeds Rs 15,000.
5) As per the current rules of EPF scheme, an employee contributes 12% of his monthly salary to the EPF scheme and an employer matches this contribution.
6) As per the current rules of EPF scheme, an employee contributes 12% of his monthly salary to the EPF scheme and an employer matches this contribution.
7) Out of the total 24% contribution (Employee’s 12% + Employer’s 12%), employee’s 12% and employer’s 3.67% goes into the EPF account and the balance 8.67% goes into the EPS account.
8) The insurance benefit under the EDLI has been increased by 20% in addition to the existing admissible benefits.
9) The retirement body increased the maximum assurance benefit under the Employees’ Deposit Linked Insurance (EDLI) scheme to Rs 7 lakh from Rs 6 lakh. “Enhanced social security is sought to be provided to the workers without any additional cost to the employer.
10) EPFO has updated many of its schemes:
· These include PF-Aadhaar linking,
· maintenance of two PF accounts for some employees,
· rise in insurance benefit under EDLI scheme and
· adding a nominee to the employee’s PF account among others.
Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.
From April 1, the existing PF account can be divided into two parts, which will also be taxed. According to the rules, there will be no tax on contribution up to Rs 2.5 lakh in PF account. Interest earned on contributions above this will be taxed.
GST e-Invoicing
The Central Board of Indirect Taxes and Customs has reduced the turnover limit for issuance of e-invoice under GST to Rs 20 crore. Earlier this limit was Rs 50 crore. The new rules of GST are coming into effect from April 1.
Mutual Funds
You will not be able to make payments for investments in mutual funds by cheque, bank draft or any other physical medium. Mutual fund transaction aggregation portal MF Utilities (MFU) is discontinuing cheque-demand draft payment facility with effect from March 31. To invest in mutual funds from April 1, payment will have to be made through UPI or net banking.
Post Office Rules
The rules of post office are about to change. The interest earned on the Post Office Monthly Income Scheme, Senior Citizen Savings Account and Term Deposit Account will be credited directly to the account. Interest will no longer be available in cash. Therefore, from April 1, a savings account or bank account will have to be opened in the post office.
Shock to Home Buyers
First time home buyers will not get the benefit of 80EEA from April 1. In Budget-2021, the tax exemption under this section was extended till March 31. According to this, if the value of the house is less than 45 lakhs, then you can claim tax exemption of up to 1.50 lakhs on home loan interest payment. Now this facility will not be available.
Special FD Scheme
For senior citizens; SBI, ICICI Bank, Bank of Baroda, HDFC Bank had started a special fixed deposit (FD) scheme in Corona period. Senior citizens get more benefit in this. However, HDFC Bank and Bank of Baroda may discontinue this scheme from April 1.
Cryptocurrency Tax
From April 1, the tax rules on cryptocurrencies may also change. The Finance Minister had said that all virtual digital assets or crypto assets will be taxed at 30%. Apart from this, whenever someone sells a crypto asset, TDS will be deducted at one percent of its sale.
Axis Bank and PNB
Axis Bank have increased the minimum balance limit in savings account from Rs 10,000 to Rs 12,000. The bank has also changed the stipulated limit of free cash withdrawal to four times or Rs 1.5 lakh. On the other hand, PNB is implementing the Positive Pay System (PPS) rule from April 4. Under this, verification will be necessary for cheque of Rs 10 lakh and above.
The biggest changes that are going to happen from April 1, 2022, the most important is the tax on PF account. Actually, the Central Board of Direct Taxes (CBDT) has decided to implement the Income-tax (25th Amendment) Rule 2021. That is, a cap of tax free contribution up to Rs 2.5 lakh is being imposed in the EPF account. If the contribution is made above this, then the interest income will be taxed. At the same time, the limit of tax free contribution to GPF of government employees is Rs 5 lakh per annum.
The Employees’ Provident Fund Organisation (EPFO) earlier this month announced an interest rate of 8.1% on EPF or employee provident fund accumulations in members’ accounts for the 2021-22 fiscal, down from 8.5% in the previous year. The interest on EPF was fully tax free in the hands of provident fund contributors till changes were introduced in the Budget 2021, effective from 1st April, 2021. The interest accrued on EPF contribution beyond a particular threshold will be taxable.
For the sake of calculation, separate accounts within the provident fund account shall be maintained starting 2021-2022 and all subsequent years for taxable contribution and non-taxable contribution made by a person, say tax experts. Or in other words, the provident fund office or the employee PF trust, will maintain two accounts for this purpose: One with contribution within the threshold and the other (second) for contribution over the threshold.
How new income tax rules on EPF interest will apply:
1) According to the new rules, any interest credited to provident fund account of an employee shall be tax free only for contribution up to 2.50 lakh every year and any interest on employee’s contribution over 2.50 lakh shall be taxed in the hands of the employee year after year. In case the employer does not contribute to the provident fund of the employee, then the threshold applicable will be ₹5 lakh of employee’s contribution, says tax expert Balwant Jain.
2) The ₹5 lakh limit covers around 93% of the people who are EPFO subscribers and they will continue to get assured tax-free interest, according to the interest rate announced by EPFO every year.
3) The employer contributes 12% of basic salary plus dearness allowance to EPF and deducts another 12% from the employee’s salary; 8.33% of the employer contribution goes to Employees Pension Scheme (EPS) which earns no interest.
4) “Please note it is the interest on excess contribution which will become taxable and not the contribution itself. The excess contribution cannot be taxed as the contribution is made by the employee from his salary which already gets taxed,” Mr Jain added.
5) As far as balance standing to the credit of an employee as on 31st March 2021 is concerned, interest on this non-taxable account will continue to remain tax free.
6) It is interest on the second account (taxable) which will be taxed every year.
7) For the second account (taxable), it is not only for the year of contribution but also for all the subsequent years that the interest will become taxable, says Mr Jain.
EPFO tweeted, ‘If an EPF member wants to change the existing EPF or EPS nomination, then he can file a new nomination. The new EPF or EPS enrollment will supersede the previous enrollment.
There visit the ‘Services’ section and the ‘Employees’ category.
Benefits of EPF e-nomination
EPF e-nomination helps eligible family members to make online payment of PF, Pension, Employees Deposit Linked Insurance Scheme (EDLI) up to Rs 7 lakh.
Anyone can update the nomination at any time. A mandatory update is needed after marriage.
For this you can file documents yourself. No documents or approvals are required from the employers.
Lastly, you have to go to – Member UAN/ Online Service.
A pension of Rs 1,000 is not enough for the subscribers of Employees’ Provident Fund Organization (EPFO). It needs to be increased. A committee of Parliament on Tuesday said that giving Rs 1,000 as minimum monthly pension to subscribers under EPFO’s pension scheme is too low. In such a situation, it is necessary that the Ministry of Labor takes forward the proposal to increase the pension amount.
Parliament’s Standing Committee on Labor in its report tabled in Parliament on Demands for Grants 2022-23 said that the monthly pension of Rs 1,000 fixed eight years ago is now too low. There are many reasons for this. Inflation has increased continuously in eight years, according to which the monthly pension should also increase. Earlier, the committee in its report had also recommended that the minimum monthly pension for members/ widow/ widow pensioners be increased to Rs. 2,000. Necessary annual budgetary provision should be made for this. However, the finance ministry had not agreed to increase the minimum monthly pension from Rs 1,000.
The two-day meeting of the Central Board of Trustees (CBT) of Employees’ Provident Fund Organization (EPFO) began in Guwahati on Friday. A major decision has been taken on Saturday after a thorough deliberation in the meeting. The interest rate on deposits in EPF has been changed and it has been reduced from 8.5 to 8.1 percent.
Income From PF Contribution Above Rs 2.5 Lakh Limit to be Taxable From April 1
Union Government has now changed the income tax laws and will be implementing a new one starting from 1st of April.
The new income tax rule will include a threshold limit of Rs. 2.5 lakh on tax free contributions for non-government employees and Rs. 5 lakh for Government employees.
The new rule of tax-free contributions will be helpful for taxpayers to calculate their taxes and will also help in splitting taxable and non-taxable contributions.
EPFO members should file e-nomination for EPS to provide Social Security to their families. The scheme is provided by the Employees’ Provident Fund Organisation (EPFO) and ensures that employees receive a pension once they attain the age of 58 years old.
Latest Update:
EPFOin a tweet has said that the account holders will be able to add nominees through the e-nomination facility even after 31 December as well. (There is no due date as earlier it was 31.12.2021)
According to EFPO, one should file e-Nomination because it helps in getting Provident Fund (PF), Pension (EPS) and Insurance (EDLI) benefits easily member’s death and also facilitate nominee to file online claims.
Please follow these quick Steps:
Step 1 Visit EPFO website >>Click on Services >> For Employees Click ‘Member UAN/Online Service (OCS/OTCP).
Step 2 Login with UAN and Password. If password forget, please reset password.
Step 3 Select E—Nomination under ‘Manage Tab.
Step 4 Provide details Tab will appear on the screen. Click ‘Save ‘.
Step 5 Click ‘Yes’ to update Family Declaration.
Step 6: Click Add Family Details. (More Than one nominee can be added)
Step 7 Click ‘Nomination Details to declare the total amount of share. Click ‘Save EPF Nomination’.
Step 8 Check ‘E-sign’ to generate OTP. Submit ‘OTP’ send on 8 mobile numbers linked with Aadhaar e-nomination is now registered with EPFO. After e-nomination, no need to send any document to the employer or ex-employer.
Kindly note:
An EPFO subscriber can submit EPF, EPS nomination digitally by logging in at the EPFO website — www.epfindia.gov.in
Employees who are enrolled in the EPF scheme will automatically be enrolled in the EPS scheme.
The EPS balance can be checked on the EPFO portal with the help of the Universal Account Number (UAN).
Benefit of the EPS is paid to the employee and in his or her absence, to the family of the employee.
An employee is entitled to receive pension only after completion of minimum 10 years of eligible service.
Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.
The Central Government had launched Employees’ Pension Scheme, 1995 in exercise of the powers conferred by Section 6A of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952). The EPS’95 scheme applies to all the employees of factories and other establishments to which the Employees Provident Funds and Miscellaneous Provisions Act, 1952 applies. Employee Pension Scheme (EPS) came into force on 16th November 1995.
The government has, for the first time, started providing a minimum pension of Rs 1,000 per month to the pensioners under EPS, 1995 from September 1, 2014 by providing additional budgetary support keeping the widespread demands although there is no provision in the Scheme for budgetary support
Eligibility Criteria:
He should be a member of EPFO.
For availing the pension benefits under the EPS 95 Pension scheme the employee must serve a minimum of 10 years in service.
The age of retirement is 58 years.
Member can also withdraw his/her EPS at a reduced rate from the age of 50 years
If an employee has completed less than 10 years of service. but more than 6 months’ service, then he/she can withdraw the EPS amount on being unemployed for more than two months
A member’s family also becomes eligible for Pension benefits in case of death of the member while in service.
Benefits:
1.EPFO has certain benefits, which are payable to orphans as per the EPS 95 scheme as mentioned below in brief.
Pension amount is 75 per cent of monthly widow pension, with minimum of Rs 750 per month, each for two orphans at a time
The pension will be paid till 25 years of age
The pension will be paid lifelong if the person is suffering from any disability
2. Benefit provided in case of death of an employee, who was a member of the scheme at the time of death – Benefit amount 20 times of the wages. Maximum benefit of 6 lakh.
3. Pension to nominee for entire life paid on death of member, in case there is no family, as defined under EPS’ 95.
4. In case a member is not able to remain in service for 10 years before attaining the age of 58 years, he can withdraw the complete sum at the age of 58 years. It is worth mentioning here that he will not get the monthly pension benefits after retirement.
5. Lifelong pension equal to monthly widow pension paid to dependent father or motheron death of member, provided there is no family or nominee of member.
Note: In case of any details and query, the EPFO members can login to the official website of EPFO at www.epfindia.gov.in
Latest News: The RSS-affiliate trade union BhartiyaMazdoorSangh has urged the government to increase the minimum pension under the Employees Pension Scheme, 1995 to Rs 5,000 a month and link the Ayushman Bharat medical schemes to all EPS-95 pensioners while exempting senior citizens from income tax. The current minimum monthly pension under the EPS 95 is Rs 1,000.
“Ayushman Bharat medical scheme should be extended all EPS 95 pensioners and any hike in minimum pension in EPS 95 should be universal hike to all 65 lakh pensioners,” it said.
How to Check Your EPS Amount
A member can check the amount accumulated in his Employees’ Pension Scheme (EPS) account in his EPF Passbook. The last column in the passbook shows the EPS contribution deposited by the employer every month in the account of the member. The passbook can be downloaded from the EPF Passbook portal after logging into the account using UAN and password.
Disclaimer:Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.
One small mistake and your hard earned money can get stuck. This is often the case with EPF. Due to non-updation of KYC in the year 2021, there were problems in transferring interest money to more than 60 lakh EPF accounts. In any such situation, you will not be able to withdraw EPF money. Therefore, it is important that the records recorded in EPFO are completely correct and keep updating it from time to time.
Facility to change date of birth
Recently, EPFO has also given the facility to change the date of birth in one of its circulars. If your date of birth is wrong in the EPF records, then there is no need to worry. Now you can update it sitting at home. Employees’ Provident Fund Organization (EPFO) has shared this information with all its subscribers. Let us know how the birth date can be updated in the EPF record.
How to Update DOB in EPFO Records
If the difference in your date of birth is less than 3 years, then in that case you will have to submit your Aadhaar or e-Aadhaar on the EPFO Unified Member Portal. At the same time, if the difference in your date of birth is more than 3 years, then in that case you will have to provide some separate documents along with Aadhaar or e-Aadhaar on EPFO Unified Member Portal (UAN). Their list is given below.
These documents will be necessary
Any school or education related certificate.
Registrar Birth Certificate.
Passport.
Certificate based on service records of Central or State Government entities.
Reliable documents issued by any government department such as driving license, ESIC card.
Medical certificate of civil surgeon after examining the member.
Submit your application on UAN portal
The request to correct your date of birth will have to be submitted online on the EPFO Unified Member Portal. For this, you can go to this link, https://unifiedportal-mem.epfindia.gov.in/memberinterface/ Let us tell you that there is a big facility available to people receiving Provident Fund or PF salary. Every month 12 percent of the basic salary of the employees is deposited in the Provident fund account. The same amount is also deposited in the employee’s account on behalf of the company.
It is necessary to make a nominee
It is important for the Employees’ Provident Fund (EPF) account holder to nominate a person for his/ her account. With this, in case of your death, the nominee of your account can easily claim the amount in the PF account. It is important to ensure that your family members (who are usually nominees) can easily claim your EPF corpus.
Sub:- Mandatory activation of Multi-Factor Authentication-Req.
Sir/Madarn,
It is informed that, with immediate effect, installation of 2 Factor Authentication (2FA) has been made mandatory by NIC for using the email id on “@epfindia.gov.in” domain.
All users availing the email services from NIC (i.e. @epfindia.gov.in) need to use 2 Factor Authentication (2FA) to access their email account. Users will not be able to access their email through the Web Interface w.e.f. Thursday, 23rd Dec 2021 unless “Kavach App” is installed.
Therefore, all users are requested to install “Kavach App” on their access devices (phone/laptop/desktop) immediately.
Please ensure that the device in which the “Kavach Application” is installed should always be available with the user, as the user has to accept the notification received on the “Kavach Application” for enabling access to the email account.
Steps to download and install 2FA application “Kavach” is attached. The attached document gives the detailed step wise process for installing the Kavach “Application” on mobile/laptop and desktop.
This makes it very important that correct mobile number is linked with your email Id. For changing the mobile number, you have to send an email from official email Id to webadmin-epfo@nic.in intimating your email Id, name, designation, date of retirement, and new mobile number. This mobile number should not be already linked with 2 email Ids.
A process for allowing your PA/PS to access your email is also given in the attached document. However, the PA/PS should be having email ID on @epfindia.gov.in domain which means that he/she should be an employee of the organizations.
Important points:-
1. Link correct mobile number with your email Id.
2. You can allow maximum two employee to access your email.
3. With one mobile number maximum two email IDs are permitted.
4. With one email Ids maximum three devices may be added.
Sub:- Mandatory activation of Multi-Factor Authentication-Req.
Sir/Madarn,
It is informed that, with immediate effect, installation of 2 Factor Authentication (2FA) has been made mandatory by NIC for using the email id on “@epfindia.gov.in” domain.
All users availing the email services from NIC (i.e. @epfindia.gov.in) need to use 2 Factor Authentication (2FA) to access their email account. Users will not be able to access their email through the Web Interface w.e.f. Thursday, 23rd Dec 2021 unless “Kavach App” is installed.
Therefore, all users are requested to install “Kavach App” on their access devices (phone/laptop/desktop) immediately.
Please ensure that the device in which the “Kavach Application” is installed should always be available with the user, as the user has to accept the notification received on the “Kavach Application” for enabling access to the email account.
Steps to download and install 2FA application “Kavach” is attached. The attached document gives the detailed step wise process for installing the Kavach “Application” on mobile/laptop and desktop.
This makes it very important that correct mobile number is linked with your email Id. For changing the mobile number, you have to send an email from official email Id to webadmin-epfo@nic.in intimating your email Id, name, designation, date of retirement, and new mobile number. This mobile number should not be already linked with 2 email Ids.
A process for allowing your PA/PS to access your email is also given in the attached document. However, the PA/PS should be having email ID on @epfindia.gov.in domain which means that he/she should be an employee of the organizations.
Important points:-
1. Link correct mobile number with your email Id.
2. You can allow maximum two employee to access your email.
3. With one mobile number maximum two email IDs are permitted.
4. With one email Ids maximum three devices may be added.
Employees’ Provident Fund Organization (EPFO), India Ministry of Labour & Employment, Government of India has issued circular No. WSU/15(1)2019/ATR/529 dated 15th June, 2021 regarding Mandatory seeding of Aadhar Number for filing of ECR-Reg. in order to provide relief amid the COVID-19 pandemic.to to PF Account holders.
Relaxation:
EPFO has extended the last date to seed the Aadhaar number with the universal account number (UAN) for filing electronic challan-cum-returns till September 1, 2021.The revised date will now be Sept 1, 2021 instead of June 1, 2021.
Key Highlights:
1. The EPFO had decided to make Aadhaar seeding compulsory after a labour ministry notification in this regard.
2. A notification was issued by the labour ministry on May 3, 2021, which mandated the ministry and bodies working under it to seek Aadhaar number from the beneficiaries under the Social Security Code.
3. Section 142 of the Code on Social Security, 2020, has been brought into force, with effect from 03.05.2021.
4. Section 142 of Social Security Code provides for establishing the identity of an employee or an unorganized worker or any other person through Aadhaar number for seeking benefits and availing services under the Code.
5. This will give more time to employers to link their employees Aadhaar number with PF accounts or UAN.
6. According to the Authority, electronic challan-cum-returns (ECR) will be allowed to be filed only for those members whose Aadhaar numbers are seeded and verified with the UANs with effect from June 1, 2021.
6. It is mandatory to seed the Aadhaar number with the UAN while filing ECRs.
7. UAN:The UAN (universal account number)is basically a 12-digit account number allotted by the Employee Provident Fund Organisation to every employee where the EPF deposits are being made.
8. Purpose of UAN:The UAN makes the process of operating PF account services such as availing withdrawal, PF loans, or checking the EPF balance easier and convenient for the account holders.
Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.
Important news for EPFO subscribers. The organization has changed a rule, which can be difficult for the employed. Actually, the organization has made it necessary to link the Universal Account Number (UAN) of the PF account with the Aadhaar card. For this, EPFO has made changes in section 142 of the Social Security Code 2020. This has changed the Electronic Challan cum Return (ECR) filing protocol.
EPFO said in its recent tweet that after June 1, 2021, the employer will be able to file ECR of the same employee whose UAN will be linked to Aadhaar. Those whose Aadhaar is not updated, their ECR will be filled separately. He can later link the employee’s UAN with Aadhaar. But everyone has to do it as soon as possible.
How Will Aadhar Update
It is the responsibility of the company management to update the Aadhaar of the employee. EPFO has given notification about this many times. If Aadhaar is not linked, the employee will see the same amount in the PF account, which comes from his salary and dearness allowance.
An investment fund where contribution is by employees, employers, and (sometimes) the state, out of which a lump sum is provided to each employee on retirement as their retirement benefit.
Let us analyses the change in situation in Budget 2021.
Provident fund after Covid-19 has left many employees in problems due to introduction of tax that is made applicable in the interest areas where earlier they were free from any taxability.
The changes can be depicted as follows
Areas that decide the PF Calculation:
Employees Salary.
Based on their own contributions.
Interest earned above 2.5 Lakhs will be taxed as per one slab, as similar to interest on bank deposits. Thus this leads to rise in employee taxability issues, post Covid.
The percentage of Employees Salary for PF is 12% and so if your basic salary increases by 1.75 laks per annum, then chances of taxability arises.
In case of own contributions which employee’s do for tax free returns also ensures that the total Interest amount shall not exceed 2.5 lakhs per annum.
Tax escaping chances in employee salary case is that, if the amount is diverted to NPS, then it would not be taxed.
The PF rules have impacted for an employee in different direction.
