PRESENTATION ON

EMPLOYEE PROVIDENT FUND

Act - 1952
A STATUTORY BODY UNDER MINISTRY OF LABOUR & EMPLOYEMENT

Web site: www.epfindia.org

EPF Limit increased to Rs. 15000 from Rs. 6500
wef 01.09.2014  
Applicability ---
 From September 1, companies will have to step
up their contributions to the Employees’
Provident Fund Organisation (EPFO). A new
directive, which took effect on September 1,
raises the basic salary limit for PF enrolment to
Rs.15,000 from Rs.6,500, bringing many new
employees under the EPFO umbrella.
Companies have to contribute 12 per cent of
every enrolled employee’s basic salary towards
PF, of which 8.33 per cent goes into a pension
scheme.
Applicability -2
 The minimum pension has also been
hiked to Rs.1,000/month, a
longstanding demand of workers’
representatives in the Employees
Provident Fund Organization (EPFO).
All the revised schemes will be
implemented from September 1.
Applicability -2
 The Gazette notification, dated
August 22, also raised the maximum
assured sum under the Employees’
Deposit Linked Insurance Scheme to
Rs.3 lakh.
BENEFITS TO MEMBERS UNDER EPF SCHEMES

There are 3 major benefits

 Provident Fund Benefits

 Pension Benefits

 Death Benefits
1. Provident Fund benefits

 Employer also contributes to Members PF @ 12%.

 EPFO guarantees the Employer contribution and

credits interest at such rates as determined by the
Central Government. (Present Interest Rate is
9.5%)

 On resignation, the member can settle the account.

i.e., the member gets his PF contribution, Employer
Contribution and Interest.
2. Pension benefits

 Pension to Member

 Pension to Family (on death of member).

 Scheme Certificate

 Withdrawal Benefit
How to get Pension
 Member has to attained the age of 50 years or
more.

 Member has to complete a total service of 10

years or more.

 Member should not get any other EPF Pension.

 Member has to apply in Form-10D at the EPF

Office where Member has last worked through
last Employer.
 If the member wants to draw pension
from a different place, The member have
to furnish appropriate Bank / Post Office
address in the application form.

 Pension is distributed through Post Offices

or through some designated banks only
(eg: Indian Bank, SBI, Indian Overseas
Bank, HDFC Bank, ICICI and UTI Bank)

There Four situations when pension can be

applied for:
1. On superannuation
(Age 58 years or more and
atleast 10years of service)
2. Before superannuation
(Age between 50 and 58 years
and at least ten years of
service)
3. Death of the member
4. Permanent disability
The member can continue in
service while receiving
this pension
On attaining 58 Years of age,
a EPF member cease to
be a member of EPS
automatically
The member should not be in
service
Death while in service or
Death while not in service
Permanently and totally unfit
for the employment which
the member was doing at the
time of such disablement
Scheme Certificate
 This Certificate shows the service & family details of a member

 This is issued if the member has not attained the age

of 58 while leaving an establishment and he applies for this
certificate

 Member can surrender this certificate while joining another

establishment and the service stated in the certificate is
added with the service he is gaining from the new
establishment.

 After attaining the age of 50 or above, the member can apply

for Pension by surrendering this scheme certificate (if total
service is at-least 10 years)

 This is a better choice than Withdrawal Benefit, as a member

dies holding a valid scheme certificate, his family will get
pension (Death when NOT in service)
Withdrawal Benefit
 If not eligible for pension, member may withdraw
the amount accumulated in his pension account.

 The calculation of this amount is based only on (i)

Last average salary and (ii) Service (Not based on
actual amount available in Pension Fund Account)

 No amount is taken from Member to give Pension to

the Member. Employer and Govt. contributes to
Pension fund @8.33% and @1.61% respectively

 EPFO guarantees pension to members, even if the

Employer has not contributed to Pension Fund.
How to settle EPF account
 The Member has to resign or retire from the establishment and
apply for settlement of PF in Form-19. If the exit is before 55
years of age, the member should not work in any covered
establishment for a period of 2 months from the exit date.

 If the member dies, Family members/Nominee have to apply in

Form-20 for settlement of PF (In case of death, apply in From-
10D and Form-5IF for Pension and EDLI also)

How to transfer the account / What to do

if joined in another establishment
 The Member has to apply in From-13(R) through the NEW
Employer at the EPF Office from which transfer is sought
clearly stating New and Old EPF Numbers. Member has to
obtain new EPF Number from the New Employer. New EPF
Number will be allotted by New Employer, not by EPFO.
 Employees' Deposit Linked Insurance
(EDLI) Scheme
 On death of a member, the Family Members or Nominee
(whoever has the entitlement to claim Provident Fund
amount) can claim for EDLI Benefit. Maximum amount
payable is Rs. 60,000/-.

 The nominee(s) have to apply in From-5IF through the

Employer.

 No amount is taken from the Member for this facility.

Employer contributes for this.

 Average PF Balance, salary and service are the factors

considered for the calculation of this amount
Advance/ Withdrawals may be availed for
the following purposes:
•Marriage / Education
Purpose : For the marriage/education of Self & Family
Eligibility : Should Complete atleast 7years of service.
Max Amount : 50% of Emp’e Share
Document : Apply in Form 31 thorough the Employer

•Treatment
Purpose : Treatment of Self, Family (Dependents)
Eligibility : No minimum service required
Max Amount : 6 times of Wages or Full of Emp’e Share
Documents : Apply in Form 31 through the Employer

•Purchase or construction of Dwelling house

Purpose : Purchase or Construction House/Flat
Eligibility : Should complete 5years only in one service.
Max Amount : 36 times of Wages.
Documents : Apply in Form 31 through Employer
•Repayment of Housing Loan
Purpose : Payment of House Loan
Eligibility : Should complete 10years only in one service.
Max Amount : 36 times of Wages
Documents : Apply in Form 31 through the Employer

•Purchase of Plot
Purpose : Purchase of Site/Plot
Eligibility : Should complete 5years only in one service
Max Amount : 24 times of Wages
Documents : Apply in Form 31 through the Employer

•Addition/Alteration of House
Purpose : Repair of house
Eligibility : Should complete 5years only in one service /
Construction of House.
Max Amount : 24 times of Wages
Documents : Apply in Form 31 through the Employer

•Lockout
Purpose : Lockout of Closure of the Establishment
Eligibility : Should be closed for 15days / No wages for 2months.
Max Amount : Total of wages multiplied by no.of months closed
Documents : Apply in Form 31 through the Employer
•Withdrawal Prior to Retirement
Purpose : Withdrawal prior to Retirement
Eligibility : No min service, atleast 54 years of age /
1year before retirement.
Max Amount : 90% of total of both shares
Documents : Certificate from the Emp’r showing the date of
retirement / Apply in Form 31
•Other Advances
Purpose : Advance in Abnormal Conditions
Eligibility : Certificate of damage from appropriate authority
Max Amount : Rs. 5000/- or 50% of member’s own share of
contribution.
Documents : Certificate from Appropriate authority / Form 31.

IMPORTANT:

• The amount of advance/withdrawal is not required to be refunded

under normal circumstances. If the amount is not utilised, the
same should be refunded with penal interest.
By –Gaurav Kumar

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