Basics of Employee Provident Fund: EPF, EPS, EDLIS

Employee Provident Fund (EPF) is one of the main platforms of savings in India for nearly all people working in Private sector Organizations. This article is about what is Employee Provident Fund(EPF), Employee Pension Scheme(EPS), Employees Deposit Linked Insurance Scheme (EDLIS), how the contributions are calculated based on basic salary and dearness allowance, what are the EPF interest rate, how much would one save in EPF, how would one know about the amount accumulated in PF.

Overview of Employee Provident Fund

What is Employee Provident Fund?

A provident fund is created with a purpose of providing financial security and stability to elderly people. Generally one contributes in these funds when one starts as employee, the contributions are made on a regular basis (monthly in most cases).  It’s purpose is to help employees save a fraction of their salary every month, to be used in an event that the employee is temporarily or no longer fit to work or at retirement.  The investments made by a number of people / employees are pooled together and invested by a trust.

Employee Provident Fund (EPF) is implemented by the Employees Provident Fund Organisation (EPFO) of India. An establishment with 20 or more workers working in any one of the 180+ industries ( given here) should register with EPFO. Typically 12% of the Basic, DA, and cash value of food allowances has to be contributed to the EPF account. EPFO is a statutory body of the Indian Government under Labour and Employment Ministry. It is one of the largest social security organisations in the world in terms of members and volume of financial transactions undertaken.

EPFO logo

EPFO logo

Till Oct 2014 every employee had a  Provident Fund (PF) account number which was associated with the employer. Change of job meant another Provident Fund number. It involved transferring from one account number to another. Multiple account numbers have been a major area of concern as a majority of grievances of employees are related to transfer of funds from one account number to another. To address this problem EPFO has launched a Universal Account Number (UAN) driven Member Portal ,http://uanmembers.epfoservices.in, to provide a number of facilities to its members through a single window. Member has to activate his registration to avail various facilities such as UAN card download, member passbook download, updation of KYC information, listing all his member ids to UAN, file and view transfer claim. Our article UAN or Universal Account Number and Registration of UAN and FAQ on UAN number and Change of Job explain it in detail

EPF,  EPS, EDLIS

The Constitution of India under “Directive Principles of State Policy” provides that the State shall within the limits of its economic capacity make effective provision for securing the right to work, to education and to public assistance in cases of unemployment, old-age, sickness & disablement and undeserved want.

The EPF & MP Act, 1952 was enacted by Parliament and came into force with effect from 4th March,1952. A series of legislative interventions were made in this direction, including the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952. Presently, the following three schemes are in operation under the Acts:( Click on the link if interested in reading the acts which are in pdf format)

1. Employees’ Provident Fund Scheme, (EPS)1952
2. Employees’ Deposit Linked Insurance Scheme,(EDILS) 1976
3. Employees’ Pension Scheme, 1995 (replacing the Employees’ Family Pension Scheme, 1971)(EPS)

Employees’ Pension Scheme (EPS) of 1995 offers pension on disablement, widow pension, and pension for nominees. EPS program replaced the Family Pension Scheme (FPS). It is financed by diverting 8.33 percent of employer’s monthly contribution from the EPF(restricted to 8.33% of 6500 or Rs 541. From Sep 1 2014 salary limit has been increased to Rs 15,000 so Rs 1250 per month) and government’s contribution of 1.17 percent of the worker’s monthly wages.

The purpose of the scheme is to provide for
1) Superannuation Pension:Member who has rendered eligible service of 20 years and retires on attaining the age of 58 years.
2) Retiring Pension:member who has rendered eligible service of 20 years and retires or otherwise ceases to be in employment before attaining the age of 58 years.
3) Permanent Total Disablement Pension
4) Short service Pension: Member has to render eligible service of 10 years and more but less than 20 years.

Employees Deposit Linked Insurance Scheme (EDLIS)
Under the EDLI scheme life insurance cover is provided to the PF members. The cost of the scheme is borne by the employer but as the amount of life coverage under this statutory scheme is very low (a maximum amount of Rs. 60,000), usually employers opt out of the EDLI scheme by going for group insurance scheme which usually provides higher coverage to employees without any increase in cost to the employer.

EPF, EPS and EDLIS are calculated on Basic salary,Dearness allowances(DA), cash value of food concession and retaining allowances if any.Most of the organizations  follow Basic+ DA Method.

Retaining allowances means an allowance payable for the time being to an employee of any factory or other establishment during any period in which the establishment is not working, for retaining his services.

Table below gives the rates of contribution of EPF, EPS, EDLI, Admin charges in India.

Scheme NameEmployee contributionEmployer contribution
Employee provident fund12%3.67%
Employees’ Pension scheme08.33%
Employees Deposit linked insurance00.5%(capped at a maximum of Rs 15,000)
EPF Administrative  charges00.85% (From Jan 2015)  1.1% (Earlier)
PF Admin account1.1%
EDLIS Administrative charges00.01%

In industries like beedi, jute, guar gum factories, coir industry (other than spinning sector) the Employee contribution is 10% while employer’s contribution is 1.67%.

Employees drawing basic salary upto Rs 15000(From Sep 1 2014 salary limit has been increased to Rs 15,000  before it was Rs 6500) have to compulsory contribute to the Provident fund and employees drawing above Rs 6501/- have an option to become member of the Provident Fund. It is beneficial for employees who draw salary above Rs 15001(Before Sep 1 2014 minimum was Rs 6501) to become member of Provident Fund as it is deducted from the salary before it is deposited on bank or given hence compulsorily saving happens. Employee’s contribution is matched by Employer’s contribution(till 12%) so extra money and it is helpful for tax purpose too. The employer contribution is exempt from tax and employee’s contribution is taxable but eligible for deduction under section 80C of Income tax Act.

Those who started job after 1 Sep 2014 and earning more than 15,000  Rs in basic and DA will not be contributing to the EPS or Pension scheme.

From 10 Feb 2016 one is not allowed to withdraw Employer share of EPF contribution and retirement age has been change to 58 years. Our article Changes in EPF Withdrawal Rules from 10 Feb 2016 discusses it in detail.

Q.Which form has to be filled while becoming member of provident fund?

To become a member of the Employee Provident Fund one has to fill Form 11 and Nomination Form. For more details check out EPFI webpage  for Employees. Sample images of the Form 11 and Form 2(front and back) are given below. Click on the image to enlarge.

Form 11

Form 11

Form 2 Front

Form 2 Front

Form 2 back

Form 2 back

Calculation of Employees Provident Fund Contributions

Basic salary of Rs 3500

Let us calculate the contribution of an employee who is getting a basic salary of Rs 3500.

Contribution TowardsCalculationAmount
EPF Employees share3500 x 12%420
EPS Employer share3500 x 8.33%292
EPF employer share3500 x 3.67%128
EDLI charges3500 x 0.5%18
EPF Admin charges3500 x 1.1%39
EDLI Admin charges3500 x 0.01%0.35 ( round up to Rs 1/-)

Basic salary above Rs 15,000 (Before Sep 1 2014 limit was Rs 6500)

In such cases companies uses different method for calculation as per their  pay roll policy. Consider an employee getting a basic salary of 20000. We can calculate it in different ways but EPS is calculated only up to 15000( was Rs 6500 before 1 Sep 2014) that means the maximum amount is fixed to Rs 1250( Before Sep 1 2014 it was 541.00). The three methods mentioned below are based on the above example.

Method-1

If company consider total basic salary above the limit fixed 15,000(6500.00 before 1 Sep 2014) for PF calculation. Employer has decided to contribute on total basic salary which is 12 % on 20,000.00 equal to 2400.00. EPS Share is fixed to 1250. Balance (2400-1250) goes to EPF account  1150.00. You may be thinking that, what about 3.67%?,

Contribution TowardsCalculationAmount
EPF Employees share20000 x 12%2400
EPS Employer share15000 x 8.33%1250
EPF employer share20000 x 12% (-) 12501150
EDLI charges20000 x 0.5%220
EPF Admin charges20000 x 1.1%220
EDLI Admin charges20000 x 0.01%2

Method -2

Some companies follows the below method in which employee share is calculated on 20000 and employer share is calculated on up limit Rs 15000

Contribution TowardsCalculationAmount
EPF Employees share20000 x 12%2400
EPS Employer share15000 x 8.33%1250
EPF employer share15000 x 3.67%550.50
EDLI charges15000 x 0.5%75
EPF Admin charges15000 x 1.1%165
EDLI Admin charges15000 x 0.01%1.5

Method-3

Some companies calculate both employer and employee shares on 15000 (Rs 6500 before  Sep 2014)  in spite of higher basic salary than 15000(Rs 6500 before  Sep 2014)

Contribution TowardsCalculationAmount
EPF Employees share15000 x 12%1880
EPS Employer share15000 x 8.33%1249.5(rounded to 1250)
EPF employer share15000 x 3.67%555.5 (rounded to 555)
EDLI charges15000 x 0.5%75
EPF Admin charges15000 x 1.1%165
EDLI Admin charges15000 x 0.01%1.5

Ref:caclubindia.com

Q. What is the interest on the PF accumulations ?

A : Compound interest as declared by Central Govt. is paid on the amount standing to the credit of an employee as on 1st April every year.

Q.  How does EPF total amount, interest calculated?

At the beginning of each year there would be opening balance, the amount accumulated till then. Contribution is made monthly but interest is calculated yearly. One gets interest on opening balance and monthly contribution. So for next year the new opening balance would be: old opening balance + contribution throughout the year + interest on the (old opening balance + contribution)

To see the calculation for each year in above example click on the image below. You can also play with EPF calculator here.

EPF amount calculation

EPF calculation

Q. What is the EPF Interest Rate?

The EPF interest rate of India is decided by the central government with the consultation of Central Board of trustees. In the past several decades, the interest rate has ranged from 8-12 % of the balances maintained in the fund.  The EPF interest rate notification is available on the official website of EPF India on an annual basis. The same is communicated through major dailies in all cities. To see Interest rate over the years from 1952 please click the image to enlarge.

EPF interest years since 1952-53

EPF interest years since 1952-53

Q. How much would one save by investing in EPF?

Let’s say Swayam starts with a basic salary of Rs. 20,000. Every year, on an average, he gets a 5% increment. He started at 25 years and worked till 60 years so his working life is, 35 years. He contributes 12% of his basic salary towards PF which is matched equally by one’s company, (EPF contribution is 3.67%, EPS 8.67%).

In this case, over the course of 35 years of his working life, his  total contribution is Rs. 26.01 Lakhs. Of course, his company makes a contribution of Rs. 7.955 Lakhs, total contribution of Rs 33.967 lakh. And this amount grows into – Rs. 1.38 Crores at the time of his retirement!

EPF how much

EPF Benefit

(Image courtesy Livemint)

Q. Can I voluntary contribute more than the statutory limit to EPF?

You can contribute additional amount (over and above 12%) to Provident Fund by depositing VPF (Voluntary Provident Fund). However, employer is not bound to do a matching contribution.The employer is liable to pay contribution only on 6500/15000 whatever is the basic salary. This is called voluntary contribution and a Joint Declaration Form needs to be filled up where the employer and the employee both have to give a declaration as to the rate at which PF would be deducted. Our article Voluntary Provident Fund explains it in detail.

How to check EPF balance?

EPFO has been using technology to turn into a more professional and nimble organisation. Now you can check your EPF balance through SMS, see your passbook. It has introduced online facility for transferring the balance to a new account.  Going forward, all members will have a Universal Account Number(UAN) which will be portable across employers and cities. UANs have already been allotted to active contributors to the EPF

You can check your EPF balance through various ways. Our article How to get information about EPF balance : Annual Statement, SMS, E-Passbook explains the various methods of getting EPF balance in detail.

  • Annual Statement : EPFO used to send an annual statement through the employer to the employee which gives details about the PF accumulations. It is wide slip of paper. The statement contains details like, Opening balance, amount contributed during the year, withdrawal during the year, interest earned and the closing balance in the PF account.
  • EPF balance by SMS From July  2011 one can check the EPF Account balance online.
    • Go to  http://epfindia.com/site_en/KYEPFB.php www.epfindia.com/MembBal.html. Select EPFO Office
    • Enter PF Account Number which is in the format : EPFO Office Code/Establishment Code(Max. 7 Digits)/Extension(Max. 3 digits)/Account Number (Max 7 digit) (PF Account Number may not have Extension code, in that case leave it blank).
    • Enter your Mobile and Name, Accept Terms and condition and Submit.
    • You will get SMS alert from EPFO : EE amount : Rs XXXXX and ER amount Rs:XXXXX as on <Today’s Date>(Account updated upto Date).
    • Sequence of steps is shown in the images below. Click on image to enlarge.

      EPF Know your balance instructions

      Know your balance Instructions

      Select PF office

      Select PF office

      EPF Select PF Office Code

      EPF Select PF Office Code

      EPF Enter account Number

      EPF Enter account Number

      You will get SMS alert from EPFO : EE amount : Rs XXXXX and ER amount Rs:XXXXX as on <Today’s Date>(Account updated upto Date).

      EE = Employee Contribution and ER = Employer Contribution on date(shown in Account updated date) mentioned in your SMS. It does not show current balance of PF  Account as on Today

  • EPF Passbook : On 30 Nov 2012 EPFO launched e-passbook facility. The online EPF or EPF ePassbook is an online version of the employee’s provident fund account. You need to register at  members.epfoservices.in to get the passbook. Note it takes time for registration to become active. You will get an SMS when you would be able to download the passbook. It shows information in detail, opening balance, contribution every month from employee and employer, how employer contribution is being split into PF and EPS. Withdrawals if any that has been made from the EPF account.
  • EPF passbook with UAN

    The UAN is a 12-digit number allotted to each Employee Provident Fund member  by the Employee Provident Fund  Organization(EPFO) which gives him control of his EPF account and minimises the role of employer. UAN number activation started in Oct 2014. You can download the EPF passbook if you have activated your UAN number. Our article UAN or Universal Account Number and Registration of UAN talks about how to register for UAN. 

  • EPF and Mobile You can also view it through the Mobile App launched by EPFO in Sep 2015, as explained in our article EPFO Mobile App , SMS Service and Missed Call : Employee Provident Fund

Withdrawal and Transfer of EPF

Q. At the time of change of Job what happens to EPF? Can one withdraw the entire amount?
A: 
Yes, legally it is mandatory to transfer EPF Account at the time of job change. But, people generally don’t do it; instead of transferring, they withdraw the amount. From 10 Feb 2016 You cannot withdraw Employer contribution to EPF before 58 years. Our article Changes in EPF Withdrawal Rules from 10 Feb 2016 discusses it in detail.

In case of EPS, if the service period is less than 10 years, you’ve option to either withdraw your corpus or get it transferred by obtaining a ‘Scheme Certificate’. Once, the service period crosses 10 years, the withdrawal option ceases.

Q Are there in any tax implications, if I withdraw the EPF balance before 5 years?
A: In case you are a member of recognized provident fund it depends on if contribution is over 5 years or not, including transfers from different companies.  If you withdraw before completing a period of 5 years, then all your previous years income gets recomputed as if the fund was unrecognized from the very beginning  (i.e., the tax benefits you received on your own contribution u/s 80C/88 in earlier years will get forfeited) and further the employer contribution and interest received will be added to your current income subject to relief under section 89.

Q. What is TDS on EPF withdrawal? What is Form 15G?

  • Provident fund withdrawal is before five years of completion of service attracts tax deducted at source (TDS) at 10 per cent from Jun 1 2015.
  • TDS will be deducted at 34 per cent if one does not submit PAN.
  • Exemption from TDS has been given to subscribers with no taxable income, provided they submit 15G/15H form. To avoid the levy of TDS, 15H (for senior citizens) or Form No. 15G (other than senior citizens) can be submitted, provided the provident fund amount payable is up to  basic exemption limit which for AY 2016-17 is 2,50,000 and Rs 3,00,000 for senior citizens respectively.
  • Our article  How to Fill Form 15G? How to Fill Form 15H? explains how to fill the form 15G/15H in detail.

Q Are there in any tax implications, if I withdraw the EPF balance after 5 years?

No if you withdraw after 5 years of total contribution to EPF(which includes multiple jobs) then your EPF withdrawal becomes tax free. Show it as exempt income in Income tax return.

Q. Can I withdraw from EPF while working?

EPF scheme allows partial withdrawals for the purpose of marriage/illness/higher education/house construction etc.

Q How to transfer EPF? 

Ideally, you should initiate the process of transferring your EPF balance as soon as you join your new organization and are allotted a new PF account number. From Oct 2014 most of employees have been alloted Universal account number or UAN , a 12-digit number by the Employee Provident Fund  Organization(EPFO) which gives him control of his EPF account and minimises the role of employer. Universal Account Number (UAN) Member Portal (www.uanmembers.epfoservices.in) was launched in September 2014. This portal offers lot of facilities to employees or EPF members. But, EPF Online Transfer Claim is still not available. For time-being you have to submit online EPF Transfer claims through http://epfindia.com/Employee_OTCP.html or  Click on Online Transfer Claim link ar EPF website http://memberclaims.epfoservices.in/ .

Employee Pension Scheme

Q: When can an employee start receiving a Pension?
A: 
A employee can start receiving the pension under EPS only after rendering a minimum service of 10 years and attaining the age of 58/50 years.However, no pension is payable before the age of 50 years and early pension after 50 years but before the age of 58 years is subject to discounting factor @ 4% (w.e.f. 26.09.2008) for every year falling short of 58 years. In case of death / disablement, the above restrictions doesn’t apply.

Q: How long the pension is available?
A: Lifelong pension is available to the member and upon his death members of the family are entitled for the pension.

Q: What is the formula for calculating the monthly pension?
A:Under Employees’ Pension Scheme, the monthly retiring pension is decided on the basis of ‘Pensionable Service’ and ‘Pensionable Salary’ and is worked out as follows

Monthly pension=( Pensionable salary*Pensionable service)/70

Pensionable Salary is arrived at by considering the average contributing salary immediately preceding 12 months from the date of exit from the scheme, normally this would be limited to Rs 6,500 p.m. unless certain enhanced contributions are made by the employer with permission. Pensionable Service is the service in years rendered by the member for which contributions have been received maximum cannot exceed 35 years

Q: What is the maximum amount of Pension available under EPS?
A:  The government has also fixed monthly pension benefit at Rs 1,000 from the financial year 2014-15 . Those who started job after 1 Sep 2014 and earning more than 15,000  Rs in basic and DA will not be contributing to the Pension scheme. Before Sep 1 2014 it was Based on a maximum employment period of 35 years, and maximum contribution of Rs 6500, the maximum amount of pension as per the Pension formula would be = 6500 * 35)/70 = Rs 3,250 per month or  Rs. 39,000(3250 * 12) per year.

Q. Is the Monthly Pension paid under EPS just?

The amount of pension is meager. If one would have invested Rs 541 in a recurring deposit at the rate of 8% for 35 years one would get 12,49,263 as maturity amount. If this maturity amount is put in buying the Pension plan say LIC’s Jeevan Akshay VI and put the above amount Rs 12,49,263 in the premium calculator of LIC with option as Annuity payable for life, one would get montly pension of Rs 10,150 which is much more than Rs 3250.

Related Articles:

In this article we covered about EPF, EPS, the calculation etc. In the next article we shall cover about how to withdraw or transfer from EPF, EPS. Difference between EPF and PPF? If you find something missing or incorrect please let us know, we shall correct is As Soon As Possible(ASAP). Hope you found this article helpful. What are you thoughts on EPF? Does it make sense to contribute to EPF?

Pin It

222 Responses to Basics of Employee Provident Fund: EPF, EPS, EDLIS

  1. R. J. Shah says:

    Is the scheme EPS 1995 applicable to State Govt. employees? Is there any contribution from Govt . employees towards
    EPS 1995?

  2. faheem says:

    hi

    myself worked in a organisation for 5 months only , i got to know that ,we are eligible to apply pf only if we complete 6 months only , can anyone suggest me on this

    • Yes what you heard is correct. You have to work for minimum 6 months to get the withdrawal benefits from EPFO. But there is a catch.
      for Employee contribution there is no limit of minimum period to be worked. but for Employer contribution to Pension you must work minimum 6 months.
      So you can withdraw your contribution to EPF.
      You can transfer both to new job as well.

  3. Komal says:

    I am not able to submit query on this site. It is showing me javascript not enabled. Although, the same is enabled. Also, the Toll free number – 1800118005 is not getting through

  4. Pintu says:

    My Father was working in a company since 1990 but due to some reasons he has to quit job in 2011.When I check EPF balance it shows account inoperative ,so what he should do to withdraw all the money.

  5. K MURALI MOHAN RAJAU says:

    if i take early retirement means at the age of 55,original retirement age is 58,what is the procedure whether employer can accept, if accepts what are benefits we loose.

    one employee can have two or more pension ids,if employer allots like that PF department can accept or take any action against for such act

  6. AGNI says:

    How much money I will get if I close my EPF account in this condition?
    can you please help?

    Employees Contribution= 44746
    Employer’s Contribution= 13079
    pension is = 26451

  7. Gunasekar says:

    hello friends,

    Kindly advice me on below.
    I like to withdraw PF balance on my current working organisation, Is possible ?
    HOW ?

    Thanks in advance

  8. hari kishan k says:

    HI,

    I HAD BEEN READING ALL THE ABOVE QUERIES AND YOUR REPLIES, GREAT YOU TAKEN TIME IN ANSWERING THE QUERIES.

    MY QUERY IS I HAD STARTED WORKING IN THE PRESENT ORGANISATION SINCE AUG’2007 AND QUITTING THIS JOB BY 30TH JUNE’16. IT DOES NOT COMPLETE 10 YEARS OF SERVICE, HENCE I WILL NOT QUALIFY FOR PENSION. PRIOR TO THIS ORGANISATION I WORKED WITH ANOTHER COMPANY FROM APR’06 TO AUG’07 -WHERE I HAD WITHDRAWN MY EPF, I HAVE NO IDEA OF EPS WHETHER COMPLETELY PAID TO ME NOT REGARDING PREVIOUS ORGANISATION.

    SECONDLY – WHAT IS THE POSITION OF EPS AMOUNT OF THE PRESENT ORGANISATION.

    i’M PLANNING TO START UP MY OWN BUSINESS WHEREIN I WILL NOT GET ANY FUTURE CONTRIBUTIONS FOR PF.

    PLEASE CLARIFY.

  9. Sachin Kumar Roy says:

    Sir,
    All your Articles are awesome(Padh k Maza aa Jata hai :-).I cordially wanna thank you for such an helpful article.
    Keep posting….

  10. vishnu says:

    Hello Friend,

    PF Total Amount Rs. 1,15,621. From April 2011 to July 2013 – Full time employee, after Aug 2013 to till date working as freelancer. I recently submitted PF documents in the month of April 2016 2nd week.Received less amount Rs.12,300. Kindly advice.

    • bemoneyaware says:

      Did you ask your employer for break up?
      PF means what : EPF or EPS too?
      Which forms did you fill Form 19 and/or Form 10C?

  11. Biji Thomas says:

    Kindly let me know the effective date of implementation of the latest rules of EDLI scheme which has been raised from Rs. 3.60 lakh to Rs. 6 lakh.

    Has the notification been issued by the government for the latest changes in the EDLI scheme? If yes, then kindly provide me the link to the notification.

    • bemoneyaware says:

      We could not find notification. But found 2 documents on EPF webpage which mentions it.
      newsletter Oct 2015(pdf)
      Agenda for Meeting
      Hope it helps

  12. vishal says:

    Please verify, if this is correct?

    If employee is eligible for PF now as their Basic salary + DA < 15000, but later after increment, if their basic + DA has exceeded 15000, then PF will still be continued as its registered and employee is still working in the organization and both the employee and employer contribution will be deducted from employee salary only.

  13. JayaKrishna says:

    Does this restriction of withdrawing of employee share + interest apply for advance amount for house construction/land purchase(advance withdrawal)?

  14. Abhijit Banerjee says:

    I am a Defence contractor. Of late Military Engineer Services ( MES) is asking for EPF account to compete in E- Tendering. EPE document to be uploaded for completion of tender application. Our job is not of regular nature. Half of the year we remain without any work. More over we are not principle employer and our nature of jobs do not permit to keel labour permanently.Time is passing out we are unable to participate in tender.
    Kindly advicew the future course of action.

  15. jayakrishna says:

    very good article

  16. shivakumar Bm says:

    hi sir,
    im working in last 8 years my PF also dedecting
    my qustion is last Apr-1st-16 my pf Balence checked its showing is updated till Feb-16.yasterday checked the balcence is showing only Mar-2105 with interst.
    so i can draw my pf upto 2015 March or not pls tell me

    regards
    shiva kumar BM

  17. Gaurav says:

    Hi,

    My basic salary is above 15000, however my employer is deducting both PF contributions on 15000/-, I am asking them to restructure my salary and do PF contribution on actual basic salary (both the contributions), this way my employer’s PF will also be increased and i will save on tax on that part. will there be addition on admin charges, if my emplyer’s contribution goes up and will that be ok that I bear any additional admin charges on account of increased employer’s contribution?

  18. Richa says:

    Hi,

    I have below query please guide me.
    Can person opt out of PF having basic salary above 15k? What is the declaration filled? If the person was previously in PF.

    PF is not deducted now by new employer is it correct.

    After resigning this job where no PF was deducted will there be problem in registering in PF again after a gap of year in new company.

    regards.
    Richa

    • bemoneyaware says:

      one has to opt out of Provident Fund in the start of his job. If a person has been part of EPF even once in his life, then he can’t opt out of it.
      If he fulfills the condition in form 11 – that is he has starting salary of over 15000 basic + da and he does not have any existing pf account! he can opt out of pf.
      However, he can not ask the company to pay him the employers contribution to him

  19. Anand says:

    Hi,

    I had a query regarding EPF. I had worked for about 4 years and have about 3.2 lakhs in my EPF account (employee and employer contribution included).

    I had two queries,

    1) Govt has recently proposed to divert money lying in unclaimed EPF accounts towards senior citizen’s welfare fund. I have not made any contributions in last 4 years as I’m presently unemployed. So will my EPF account be treated as unclaimed?

    2) Can I withdraw it fully and will it be taxed? If yes, approx how much would I need to pay as tax?

    • bemoneyaware says:

      1. Your EPF account is termed as inoperative as there has been no contribution for last 3 years.
      2. Yes you can withdraw full as the Govt has postponed not being able to withdraw employers contribution till 1st May. As you have contributed towards EPF for less than 5 years entire amount is taxable under various sections.
      The aggregate of employer’s contribution to PF and interest earned thereon will be taxable as salary.

      Further, to the extent of the deduction claimed by you under section 80C of the Income-tax Act, 1961, on your own contribution to the recognized PF shall be taxed as salary.

      Also, the interest earned on your own contribution to PF shall be taxed as “income from other sources”. The tax rate would depend on your applicable income slab in each of the FY(s) during which the PF contributions were made. Further, the surcharge (as applicable) and education cess, shall be applicable, for each of the FYs will also be payable in addition to the basic income tax.

      You would be entitled to avail relief under section 89.

      Tax will be deducted at source at 10% if the taxable PF amount is more than Rs. 30,000 and provided the Permanent Account Number (PAN) of the individual is available. If PAN is not available, then tax would be deducted at maximum marginal rate.

      • Anand says:

        Hi thanks for the clarification… My main concern as of now is – if I do not withdrawalw my epf will government divert it to senior citizens welfare fund? I had read in news tat those accounts which are unclaimed for over 7 yrs will be diverted… Since I’ve not contributed for last 4 yrs my acc is unclaimed for 4 years only nd thus will not be touched by govt? Please do clarify this…. I want to withdraw only if the epf is expected to be diverted…

        • bemoneyaware says:

          There is no imminent danger. But you might have to claim your EPF.
          Details of scheme announced are as follows:
          According to a Finance Ministry notification on March 18, deposits, unclaimed for over seven years, of EPF, PPF and small saving schemes such as Post Office Savings Accounts, Post Office Recurring Deposit Accounts and National Savings Certificates subscribers will be diverted towards setting up a Senior Citizens’ Welfare Fund. According to the rules, the concerned government office “shall try to contact” every account holder of the unclaimed deposits through written notice, e-mail or telephone at least two times in 60 days before transferring the amount to the Senior Citizens’ Welfare Fund.

          The EPF board had, earlier this week, rolled back a 2011 decision to stop interest credits on inoperative PF accounts. Now, while such accounts will continue to get interest credits, the entire balance could be lost to the Senior Citizens’ Fund after seven years of inactivity, though it’s not clear how this will be implemented.

          Legal experts are also skeptical. “The rules, notified on March 16, by the Finance Ministry need to be placed before both Houses of the Parliament. Also, there will be no immediate danger (to people’s savings) as the rule says a list of unclaimed inoperative accounts has to be prepared by the ministries concerned by September 30 and prior intimation of at least 60 days is required. Anyway, the EPF Act doesn’t contemplate any diversion of PF dues for other purposes,” said labour law advocate and International Labour Organisation consultant Ramapriya Gopalakrishnan.

  20. Dinkar says:

    Dear Sir

    With my Previous Employer1 I see I have 30000 Rs as Pension Fund (EPS) and I have served 4.5 Years and I am able to manage transfer my PF amount

    With my Previous Employer 2, I see I have 15000 Rs as Pension Fund (EPS) and I have served 3.5 Years and I am able to manage transfer my Pf amount

    With Current Employer 3, I see I have 15000 as Pension Fund (EPS) and I am serving 1.5 Years

    Overall I see 60000 Rs for 9 years of Service Length. Can I withdraw 60 K from EPS without Withdrawing EPF or when can I withdraw this 60K

    Kindly let me know

    Thanks
    Dinkar

    • bemoneyaware says:

      You can withdraw from EPS when your combined years of service is less than 10 years. After than you get Scheme Certificate which you need to submit when you turn 58 to withdraw the pension
      You can withdraw EPS from each of the account.

  21. EKANT PURI says:

    Thanks! I was looking for this only… Thanks a lot.

  22. ABHISHEK JAIN says:

    Hi,
    EPF has deducted TDS by mistake from my my final settlement though I have competed my 5 years. Can you please advise how can I get refunded.

  23. hari jakhar says:

    I hari join a firm march-08 and resigen jun-16 and join a new mnc firm june-16 to till now and I transfer my previous pf in new pf no.can I know that I can take benefit of eps scheme complete both service 10+ year.
    thanks

  24. Abhishek Iyer says:

    Dear Sir,
    I Have Been Working With An Organisation For Last 11 Years. Out Of 11 Years I Have Been Based On A Foreign Location (Singapore) For The Last 5 Years- The Country I Am Currently Based In Doesnt Have Social Security Agreement With India.

    As Per My Contract For Foreign Deputation My EPF Is To Continue In India. My Monthly Basic Salary Is USD 5000/ Month.

    My Question Is – What Should Be My Employers And My Contribution To EPF India ?
    What Basic Salary Should Be Used For Calculation To Determine Contribution.I Have No Salary Component Paid In India – And I Do Not Pay Any Income Tax In India.

    My Contract Has The Following Wording Regarding Pension- \” Company Will Maintain Your Indian Pension Contribution

  25. rishikesh says:

    Dear Sir,

    i am working ad a designer under contract basis.i have doubt in my pf account

    in my EPF account, i downloaded my accounts details. in that it has mentioned employee share , employer share , and pension contribution.

    here the doubt is employee share = employer share + pension contribution ? (or) all amounts are separate amount ?

    kindly clarify my doubt.. please…

    Rishikesh

  26. jaimin patel says:

    Dear Sir/Madam,

    I have query about Pension Contribution so request you to pls give me clarification of this query.
    What is Pension Contribution.

    Thanks in advance Your response is greatly appreciated.

    Regards,
    Jaimin Patel
    9909948293

    • bemoneyaware says:

      Patel bhai shall try to answer.
      In EPF a part of your salary(12%) gets deducted . Employer pays Rs 1250 (since Oct 2014, before that was Rs 650) for pension fund and rest in EPF.
      When you retire at age of 58(changed from 10 Feb 2016) you can apply to EPS for pension. The pension amount will not be big min of Rs 1000

  27. Pawan says:

    Can i opt out of EPS ? Max pention we can received is approx. 3500 pm which is very low also i am not receiving any interest on EPS amt. So if i can out out of EPS atleast i can earn interest on the that portion same as i earn it on EPF

  28. kavin says:

    when i receive ans for my qus

  29. Payel says:

    Sir, I m leaving my job from a PVT organization after 6 years.Now I m not joining other company and want to withdraw EPS.what is the procedure.I know my UIN.

  30. Tanay says:

    hello sir,

    i am working in a pvt. ltd. company.from my salary pf deducted monthly INR 2400 but my company is not provide me any type of documents related to pf and not monthly pf slip.how can i confirm that through my salary deducted amount is originally pf. They have not given me any pf account number.

    please suggest me how can i check my pf balance.

    • bemoneyaware says:

      Sad to hear that. The company should provide you with a provident account number.
      In Form 16 issued there should be amount mentioned for PF deduction.
      Talk to your friends and colleagues. Try to get more information whether it is a EPFO trust or not etc.
      You can check for your company or establishment at http://search.epfoservices.in/est_search.php
      If you find anything foul play straight approach your Regional Provident Fund Office(RPFC) to check and can lodge a complaint if necessary.
      Best of luck. Do keep us updated.

  31. amit jain says:

    my retirement in feb 2018. my present salary is 16000/- p.m. my date of joining in company is 1-7-1980. what is my expected pension? please send calculation sheet with new formula.

  32. CA says:

    Correct me if I am wrong,I guess the amounts in your examples are not calculated correctly.

    Also, let me know whether PF Admin charges are 0.85% or 1.10% of basic as your table states both.

  33. CA says:

    Request you to publish a similar article ( with definitions and examples) on other employee benefits payables such as ESI, Bonus, Gratuity and Leave Encashment.

  34. Gauri says:

    Recently,one of my friend transferred PF online.In the Passbook the PF fund is reflecting but not the Pension fund.Could,anyone guide in this regard.

  35. Peeyush says:

    Hi,
    I was checking my member passbook in EPF website and not finding interest calculation as per the excel file you have given in your blogs. So need to understand if there is any thing wrong…

    My passbook says…

    OB Int. Updated upto 31/03/2010 Deposit – employee share Rs x, Employer Share Rs Y
    Total Cont from 042010 to 032011 – Deposit – employee share Rs A, Employer share Rs B

    Int. Updated upto 31/03/2011 Deposit – employee share Rs L, employer Share Rs M

    EPF interest rate in 2010-11 was 9.5%

    So this L should be equal to (x+A)*9.5%
    And M should be equal to (Y+B) *9.5%

    But L and M values are less and not as per this calculation…

    Any idea, what is the issue and if this is not correct, then where I can report this for correction ??

    Thanks a lot for your help.

  36. Shadab says:

    Hi ,

    I am going to join new organization from next month and I want to withdraw my EPF amount . So in this case I have to open a new account in new organization or can I use same account ?

    Also my new organization is contributing X amount toward my EPF in that case I have to pay 12 % of my basic salary or It will be X less ?

    • bemoneyaware says:

      Short ans: New organization will get EPFO to generate another member id for you. Your UAN number will not change.
      To withdraw from EPF theoretically one should be unemployed for 2 months and if one withdraws before 5 years one would have to pay tax.
      As EPF is for retirement purpose and to use power of compounding it is strongly recommended that you transfer your EPF rather than withdrawing.

      Lets understand difference between Member ID and UAN from our article UAN or Universal Account Number and Registration of UAN
      What is Member ID?
      Employer submits the EPF(Employee Provident Fund) money to the EPFO (Employee Provident Fund Office) on behalf of the employee. This includes both the employee contribution, employer contribution, Employee Pension scheme. Member Id or Member Identification Numbers is the number given by EPFO to allow the employer to submit EPF money of employee. It’s like Employer opens an EPF account for its employee and contributes to that account every month. Member ID is the account number of employee in the EPFO. When the employee changes the job then the new employer will open a new account number for it’s employee in EPFO. So a new Member ID will be allotted to employee. Member ID is same as PF number earlier. So you would have as many Member ID’s as the number of employers contributing on your behalf to EPFO.

      Member ID or PF Account Number is in the format given below. PF Account Number may not have Extension code. Ex: For someone who works in Bangalore the code can be BG/BNG/012345//789.

      What is Universal account number or UAN?

      The UAN is a 12-digit number allotted to each Employee Provident Fund member by the Employee Provident Fund Organization(EPFO) which gives him control of his EPF account and minimises the role of employer

      How does Member ID differ from UAN number?
      An employee will have one UAN or Universal Account number, which as the name implies will remain the same. It will maintain all your Member Ids. Its like you can have multiple Saving Bank account but all these are tied to your one Permanent Account Number or PAN. So when you change your job and the new employer, if contributing to EPF, gives you a new Member ID. This new Member ID has to be linked to your UAN number.

  37. K.Singh says:

    Hi sir,

    before 2 month government also change EDLI contribution rate, So, please update me about new amendment about EDLI contribution rate. please help me ASAP.

    • bemoneyaware says:

      Sir we could not find the new contribution rate. From what we know It is still 0.5%.
      Could you please help us out by telling us where did you get info from?

  38. abhishek says:

    Hello,

    I worked in India until Jun 2011 having less than 5 years of service in India.
    After Jun 2011, I have become NRI and working abroad. Could clarify my below points.

    1. Am I still earning interest on my PF?
    2. Can I withfdraw my EPF and EPS ?
    3. Is there any tax implecation in my case?

    Thanks,
    Abhishek

    • bemoneyaware says:

      Hope you are getting a great exposure.
      1. 3 years after last contribution in EPF , the account stops earning. After Jun 2014 your EPF account has stopped earning interest.
      2. Yes you can.
      3. Yes it is taxable. Withdrawal of the accumulated balance from a recognized PF is taxable if the employee has not rendered continuous service for five years or more to the employer. While computing the continuous service of five years, the period of previous employment is also included, if the accumulated balance maintained with the old employer is transferred to the PF account of the new employer. We understand that you have rendered service for four years. Assuming that this was your first job or you have not transferred PF balance, if any, from the previous employer, if you withdraw your PF, it shall be taxable in the year of receipt.

  39. Ram, says:

    Hi, I have a query regarding delaying of withdrawal from EPF even after 60 years of age. I find the 8.7% tax free interest for EPF quite attractive for the debt portion of my portfolio. Even if the interest rate goes down in future, it is likely to be market competitive. Is continuing to work and having EPF contributions going the only way to keep the EPF account active and earning interest? Can I work for 3 months every 3 years to keep the EPF account active for ever? I understand that 3 years of no contribution makes the EPF account inactive and interest accrual stops.

  40. Ajit Chougule says:

    please help
    about rec amount Empee share+Empyer Share+Pension fund = rec amount in my account ???
    plz help or SMS 98881035947
    pls do the needful as soon as posible i am waiting for your replay…

    • bemoneyaware says:

      You would receive Employee share+Employer Share+Pension fund +Interest till date of withdrawal on EPF amount(Employee + Employer share).
      TDS will be deducted at the rate of 10 percent if you have withdrawn before 5 years and not submitted form 15G.
      Please note EPF withdrawal before 5 years is taxable.

  41. C CANDAMURTHY says:

    I have joined in my organisation in Mar 2009 and my EPF contribution was collected from me from October 2010 after getting a self declaration from me to deduct the employee share from my salary. In this case is there any difficulty in getting back the claim on resignation/retirement as the date of enrolment Mar 2009 differs from EPF contribution date October 2010.

    • bemoneyaware says:

      Date of enrolment in EPF would be considered for EPF purposes. Date of joining compnay would be considered for gratuity purpose

  42. Ravi says:

    I worked in Company1 and quit job after completing 5 years and i got PF settlement.

    Joined company2 and generated with new PF number.
    Kindly can you please clarify whether my Pension fund will be accommodated with the previous EPS account as the PF/EPS number are different.

    Soon I will be joining company3 whether the current EPS will be accommodated with the previous 2 companies EPS.

    Thanks,
    Ravi

  43. Vikash says:

    My PF Balance are as follows:

    Employee Share : 15186 Rs/-

    Employer Share: 4651 Rs/-

    Pension contribution: 10518 Rs/-

    I want to know what is Employer share?

    Do my company is taking 4651 Rs/- from me (or) company is giving the amount to me?

    Another question is, I have Pension contribution amount as 10518 Rs/- .

    How much will get for the above pension amount per month?

  44. Gaurav says:

    hi,

    I’m working in a company. i have some question about my pf and ESIC :
    basic: 10,010.00
    conyenace : 591.00
    supplementry allowance : 800.00
    Gross: 11,401.00

    so please tell me, my employee contribution & employer contribution with details.

    • bemoneyaware says:

      EPF, EPS and EDLIS are calculated on Basic salary,Dearness allowances(DA), cash value of food concession and retaining allowances if any.Most of the organizations follow Basic+ DA Method.
      If you have UAN number you can download UAN passbook to see the exact amount. There are many ways of calculation. According to one way calculation are shown below
      EPF Employees share 10,010 x 12% =1201.2
      EPS Employer share 1250 per month
      EPF employer share 10,010 x 3.67 % or 550.50 Rs
      EDLI charges 10,010 x 0.5%
      EPF Admin charges 10,010 x 1.1%
      EDLI Admin charges 10,010 x 0.01%

  45. Orson says:

    Can we withdraw EPS amount like EPF.
    I have completed 10.5 Yrs of service in my current company.

  46. nice article thanks for sharing with us.

  47. PRAJAPATI PAYAL URMILKUMAR says:

    HELLO SIR / MADAM

    I AM PAYAL,RECENTLY I PASSED OUT MBA IN HR BUT IN PRACTICAL LIFE MEANS IN A COMPANY AND CORPORATE LIFE AS A HR HOW TO MAKE ALL CALCULATION RELATED TO SALARY SLEEP AND EPS,EPF,I HAVE NO KNOWLWDGE ABOUT THAT SO PLZ HELP ME

    SIR / MADAM GIVE ME SOME INFORMATION AND DATA RELATED TO HR WHO USE IN MY CAREERS SO PLZ GIVE ME DAT.PPLZ MAIL ME.

    MY EMAIL ID IS [email protected]

    THANKS & REGARDS

    PAYAL PRAJAPATI
    AHMEDABAD

  48. Akshith says:

    I worked at a company for 4 years 5 months, now that i have resigned from that firm and i am having hard time calculating how much EPF amount i will get.
    Below stated are the amount details i received via SMS from EPF website

    EE Amount: 42,598
    ER Amount: 13,146

    I just need a idea about how much i will receive. Please provide a approx amount.

    • bemoneyaware says:

      You would receive EE(Employee Amount) + ER(Emploryer) amount + Interest on these amount +EPS.
      If you have UAN number and activated it you can check the amount in your passbook too.
      Appox amount ~60K for EPF (Employee and Employer) + ~4-5K for EPS
      Please note that as you are withdrawing in less than 5 years of service EPF withdrawal will be taxable.
      We recommend that you transfer your EPF account to your new job!

      • Akshith says:

        Thank You, By means of taxable how much amount i will lose? I am starting my own business and i have submitted forms for withdrawing PF. How many days it will take to process the withdrawal request?

  49. manjula Shrivastava says:

    Mine is a typical may be rare case
    I am a senior citizen 15 Jan 1947 born retired from Central Govt and presently getting pension around 31,000 PM.
    After retirement at the age of 60+, I started Technical consultancy services with the group of retired technical people above 60 years of age all pensioners getting pension more than limit of EPF ie 15000.All consultants were part time ,freelancers and were booked for 4 to 5 days at an average.
    Last month I applied on line to get EPF NO under 1(4) and mentioned effective date of Dec 2007.Unfortunately I got allotted the Number and now being asked to pay all chages wef Dec 2007.I,in the application I have shown ONE Full time employee ie SELF.

    1. Whether people above 60 years of age are eligible for starting PF and pension contribution?
    2. Whether part time freelancer technical consultants working 4-5 days a month at an average and being paid piece meal basis are eligible for PF contribution?
    3. Whether my propitiatory is eligible for EPF Registration?

    Pl advice what to do in the present circumstances?

    SECONDLY

    Unfortunately while applying ON LINE I have mentioned the date of Applicability Act as 15.12.2007 as a Single full time employee.Whter I can be exepted for paying Contribution due to may age and if all I am to pay how much amount I will be required to pay as administrative charges and Inspection charges etc.

    • bemoneyaware says:

      Great to read about you. Good work and keep it up.
      1. There is no bar of any kind for contributing towards other social security schemes run by the Employees’ Provident Fund Organisation (EPFO)–Employees’ Provident Fund Scheme 1952 and Employees’ Deposit Linked Insurance Scheme 1976. For EPS the age limit is 60 years.
      2. Contract employees are eligibly for PF contribution.
      3. You can check webpage on EPF employer registration for more details. We don’t have information on it.

  50. Antony iruduya Raj says:

    Pf amont balance

  51. viky says:

    hi, i want to know the amount which am going to get after re-leaving the job is the sum up of employee share and employer share ?? anyone can help

  52. C BASHEER AHAMAD KHAN says:

    please guide me to transfer my pf account to other new pf account which is created by my new company.

  53. vinay says:

    Hi,
    I worked with a company I for 1 year and three months during which I had PF account. Then I was unemployed for 2 months. Then I worked for company II for 4 years and again I had PF account. I got UAN and PF money got transferred from Company I. Now I joined company III, but here there is no PF (less than 20 people). I have following questions.

    1. If I withdraw PF now will it be taxable (because of two months gap in between)?
    2. Is it possible for me keep account alive by paying PF myself? If so how much should I pay? will I get tax benefit for that?
    3. What will happen if I neither withdraw nor I pay myself? Will I get interest for amount already there?

    Could you please guide me?

    • bemoneyaware says:

      1. EPF withdrawal becomes taxable when contribution to it is less than 5 years. You have worked for 1 year three months in 1 company and 4 years.
      2. No you cannot contribute to EPF. It would earn interest for next 3 years and then become dormant.
      3. If you are planning or thinking of moving or after sometime your company may start EPF then don’t withdraw from it.You have 3 years to make a decision.

  54. Raja says:

    I am manpower supplyer , I want to add new employee in epf so pf challan what is needed to fill the service tax. What is the connectivity deposite pf challan & service tax.

  55. Rahul says:

    You have given 3 methods of PF deduction.
    Is it not that as per govt. rules only method-3 is correct?

  56. E KRISHNAMOORTHY says:

    Mine is old story which is not able to get the solution for past 10 years. My PF account is KN/BN/19353/762 when I was shifted my job from Bangalore to Chennai by 2006, I had been asked to submit the PF transferring form in my new company (New PF account no: TN/49115/628 till now). After six to eight months i have checked with the present company for transferring the amount, but it has not been done. So i decided to cancel the PF account and filled the cancellation form in bangalore during 2006 december. After a month (2007 Jan) I got letter from Employers provident fund organization Bangalore, saying that my account has already been transfer to TN/49115/628. Actually it was not transferred till now and I was walking Chennai to Bangalore almost 5 to 6 times and got fed up. Finally I have taken all the relevant documents to Bangalore as one of my friend gave suggestion to get Right Act Information about the fund transfer and bank cheque number details. I got the result of saying that your account has been transferred so on so date and due to very old account they could not the trace the cheque details. Now what else I have to do to get my PF amount or due to very old account it might be lapsed? Please give me your valuable suggestion

  57. Birendra says:

    I have the following query.
    An employee who was also an EPF member was fired on some ground by his employer. The employee goes to court and wins the case in his favour after 3 years. Now the employer has to pay his salary for these 3 years. How to sort out EPF account in this case. Or the employer has just to start again from the date of rejoining?
    Please advise

  58. Biswanath Nag says:

    Do I need to open a single account or a joint account for EPS? How will my spouse get pension after me?

  59. Ramandeep says:

    sir,
    i have employed in a public company. My employer deduct employee’s PF @12% but not deposited in my PF account.
    What is the remedy ?

    Regards
    Raman
    Mob 8009-515850

  60. Prasad says:

    Dear All,

    will you please help me..?

    I just want to ask one simple question regarding the new contribution rates of A/c No. 2 & A/c No.22 what are the changes are done by EPFO…?

  61. A Prashanth says:

    Khudos to the author and to Website!!!!

    Nice knowledge i gained here after got throughing about the PF.

  62. Balak Ram says:

    Sir,I am working in reliance communication from Apr 2002 to till date under different private agencies as security assistant.I know about that i eligible for pension because I drawn the PF amount up to 2012.One installment amount for the period May 2008 to May 2012 drawn but balance one installment is pending.As per rule what is the procedure black out by owner company(Reliance Communication)to give the contact different agencies against of employees.

  63. Ravindra Joshi says:

    I want your comments on my typical case. I completed 58 years in Nov 2014.
    My service before EPS 1995, was @ 15 years ( Jan 1981 to Apr 1995 and @ 7 years after EPS 1995 came into existance. I worked on total 3 organizations and PF was trasnferred proerply till last organization, which I left in Mar 2003. In my last organization I had withdrwan my PF, in Nov 2004, since my new organization PF facility is not available.
    Here I received 2 diiferent cheques. One for EPF and other for an amount Rs 49010/-.
    My query is about the second amount Rs. 49010-
    (I think this is as per Table D. For 7 years service after 1995 till 2003 = 7.54*6500 = 49010.0.

    Now my question is how they(PF Office) allowed me withdrawal benfit evenif my service was @ 22 years in 2003? As per rule, withdrawal benefit is only avaialble if total service is less than 10 years. They should have issued my Schee Certificate. I want to claim for pension. Is it possibel now?

  64. Sandeepkumar R.Shah says:

    I had worked 5 years & contributed in PF for 5 years. but after I had left the job till 6 years Now I am doing Job. I had not withdrawn the P.F. So Can I Transfer my PF to new a/c. My total working year how to calculates by PF department

    • bemoneyaware says:

      Sir yes you can transfer PF to new account.
      Now do you have the UAN number? If so you can request online for transfer of PF.
      Calculation of number of working years in PF = Number of years for PF contribution in Job 1+ Number of years for PF contribution in Job 2

  65. Saurabh says:

    Hi,

    I resigned from company who is having its own trust.In my payslip there are two different number ie PF no and EPS number.
    When I am going for online transfer,company has suggested me to put EPS number and not PF number.
    And also if i put PF number for online transfer,it shows some other name while when I give EPS number than it shows my details.Any idea about this discrepancy.
    I want to know that for this particular case only pension amount will get transferred and not the pf amount.Please confirm.

    Appreciate any help on the above.

  66. Manvinder kaur says:

    Hi, I need to confirm as I joined a company on 29th may 2006 and need to know if I leave my company on 3 sep do I get my PF contribution , employeer contribution as well as pention fund amount ? Bec I am leaving my job before 9.5 year

    • bemoneyaware says:

      You would get both Employer and Employee contribution for EPF part without any tax liability i.e no TDS will be deducted and no tax on amount withdrawn.
      For EPS part you can get your EPS amount.
      But we would request you to transfer your EPF account rather than withdraw. EPF is for retirement

  67. ashfaq says:

    Great. I was searching about this and found correct and very clear article.
    I shared it with my friends

  68. Krishna says:

    Hi Thanks for the article,

    I have several questions please kindly help me on the same.

    1. I can check my PF balance via SMS or epfo website. But How do I check the EPS balance.

    2. Every time I login to the epfo portal I am unable to download the pass book. Why is this happening.

    Kindly help on the above questions.

    • bemoneyaware says:

      EPS balance can only be seen by downloading the passbook.
      What error message are you getting?
      Do you have UAN? If yes then download passbook through UAN website.

  69. Sudipto says:

    Hello,

    The article is very informative. Thank you.

    My question is on the EPS. Lets say a person has accumulated Rs. 10,00,000 in his EPS account on retirement at 58. He gets his pension with the formula you mentioned. But what happens to the Rs. 10,00,000 corpus? Does the person’s family get back the corpus on the person’s death?

    Thanks in advance,
    Sudipto

    • bemoneyaware says:

      Sir in Pension scheme there is no return of corpus.
      You would never be able to get 10 lakh in EPS amount.

      So if one works for 40 years assuming you start at 18 and work till 58
      assuming Rs 541 you would have contributed 259680 (541*12*40)
      Assuming 1250 you would have contributed 600000 (1250* 12 * 40)

      A superannuation pension shall be granted to a Government servant who is retired on his attaining the age of 60 years. Till he lives

      From 1 Sep 2014 The minimum monthly pension for widows has been fixed at Rs 1,000 and for children at Rs 250 per month. Similarly the minimum pension entitlement for orphans has been fixed at Rs 750 per month.

    • bemoneyaware says:

      Example of pension calculation from pensionersportal.gov.in
      Name of the Government Servant : R. MALAKONDAIAH
      22. Designation : PCC
      23. Scale of the post last held : Rs.5200-20200+1800 G.P.)
      24. Date of Birth (dd/mm/yyyy) : 01/07/1950
      25. Date of entry into Government Service
      (dd/mm/yyyy)
      : 01/10/1982 F.N.
      26. Date of ending service (dd/mm/yyyy) : 30/06/2010 AN
      27. Total length of Gross Service (yy,mm,dd) : 27, 09, 00
      28. (i) Total length of non-qualifying service (yy,mm,dd) : 00, 00, 00
      (ii) Total length of addl qualifying service (yy,mm,dd) : 00, 00, 00
      29. (i) Total length of Qualifying Service (yy,mm,dd) : 27, 09, 00
      (ii) Qualifying Service in half years : 56
      30. Emoluments drawn during 10 month period and
      those reckoned for calculation of Average
      Emoluments
      Pay From Pay Upto Pay in the Pay Band+GP
      01/09/2007 30/06/2008 9560.00
      01/11/2009 31/05/2010 8140
      31. Emoluments for Pension : Rs.9560.00
      32. Emoluments for Family Pension : Rs.9560.00
      33. Emoluments for Retirement Gratuity : Rs.12906 (DA 35%, Rs.3346)
      34. a) Amount of Service Gratuity : N.A. Calculation of DCRG is as follows:-
      b) Amount of Retirement Gratuity
      (subject to max. of Rs.10,00,000/-)
      : Rs.180684 Emoluments for DCRGx 41
      ————————————–
      4
      35. Details of deductions/ adjustments on account of
      payments:-
      Withheld amount : 18068
      Total : 1000.00
      NET GRATUITY PAYABLE : 25634.00
      36. Details of Pension:-
      a. Amount of monthly Pension before commutation : 4780
      b. Class of Pension : SUPERANNUATION
      c. Date of commencement of Pension
      (dd/mm/yyyy)
      : 01/07/2008 Calculation of pension is as follows:-
      9560.00
      ———–
      2
      d. Percentage/ amount of Pension commuted : 40%, Rs.1912
      e. Commuted value : Rs.188003
      f. Commuted value payable : Rs.58899.00
      g. Reduced monthly Pension after commutation : Rs.2868
      h. Restoration of commuted portion of Pension : On completion of 15 years of commencement of
      reduced monthly pension after commutation.
      37. Medical Allowance : Rs.100.00 p.m. (Revised to Rs. 300 w.e.f. P.M.)
      38. Details of Family/ Nominee:-
      Name Relationship with
      the Govt. servant
      Date of Birth
      (for children)
      Physically
      handicapped
      Family pensioner?
      R. RAVANAMMA WIFE NO YES
      39. Amount of Family Pension
      a. at Enhanced Rate : Rs.4780 UPTO 30/06/2017
      b. at Normal Rate : Rs.3,500w.e.f. 01/07/2017

  70. Prem says:

    I served in the company from Dec. 2006 to Jan. 2010 and withdraw P.F in Nov. 2014. The EPFO is not calculating interest in the year 2013-14 and 2014-15 and no response received. What I do?

    2. The pension contribution deposited Rs. 541 per month from Dec. 2006 to Jan. 2010. Please calculate the amount that will be received.

    Prem

  71. ashutosh says:

    Employees earning above 15K basic pay can opt out of EPF? Is my understanding correct? What is the procedure. Employer by default open PF account.

    • bemoneyaware says:

      You can even opt out of EPF

      Yes, EPF is not mandatory for an employee. It is only mandatory for the employer to provide this option to the employees upon meeting certain criteria. However, if you feel you do not want to be part of this saving scheme, you can definitely opt out of this.

      If he fulfills the condition in form 11 – that is he has starting salary of over 15,000 basic + da and he does not have any existing pf account! he can opt out of pf.

      However, he can not ask the company to pay him the employers contribution to him

      • ashutosh says:

        How we can challenged this law and ensure that is completely optional. Why only salary class suffers.

        I just created this. How we can start a movement against this. Only employee part he can opt out not the employers. Only when he is joining new company and earning above 45K(assuming some non fixed salary) and not opening a new PF account with the employer. During his tenure he cannot opt out.

        How Many of us Know that contribution to EPF is optional?
        If that was the case why employer did not ask whether we want to have PF or nor Not? In my career, no employer has asked or informed this.
        I was only aware it is tax free while contributing and interest is tax free and we can withdraw after five continuous years of service and that amount is also tax free. Eligibility you need to remain unemployed for two months. Also during settlement, whether they pay the interest for the quarter/half/three-fourth of the year? Whether they provide us the calculation arrived during settlement. They have improved and now we can check the balance at “uanmembers.epfoservices.in””. our contribution, interest, pension Contribution and transferred contribution, interest. But it still do not show the transferred pension Contribution. Also we cannot withdraw after 50 years of age. So, we should get unemployed for 2-3 months before that and withdraw our money.
        Did anybody explain us how the money will come back to us. No employer has ever educated this. As per my knowledge, we can withdraw 1/3 at retirement and remaining will be added to the PENSION amount Kitty including our contributions to PENSION Scheme amount. But nobody explained the calculation based on which we will get pension and till when. In our absence, to wife and on her death any amount remained(like annuity products) will be given to the children.

        New Changes:
        1. PF will invest in stock market 5-15%. My View: Looks fine if they make money. But people will question when they lose money. Are they prepared for it? Or they will wait until it is question as a SCAM by the opposition? We might have a scenario just like what we had in china, a month back. Advice, it should remain as it has been earlier. Pure DEBT product. Otherwise just have no PF and keep NPS where customers(Citizens) decide where their money should be(equity, debt etc).
        2. The government is looking to cap premature provident fund withdrawals at 75 per cent for EPFO subscribers at any given time till the age of 58.My View: Did they cover the scenario where individual remain in foreign country, great depression kind of scenario, people remain unemployed for more than 3-6 months. Not sure about his/her survival till 58 or so due to financial instability or medical emergency or any other need. After all it is his/her money. I feel this is just not looking good at all.

        Suggestion to government that they should ensure we have products for different types of customers and they should only induce citizens by giving tax sops and nothing more than that.

      • Robert says:

        In case I opt out of epfo, my employer will not give me the employer contribution, but will my employer contribute his portion to my pf account or will it be enjoyed by the company ?

        • bemoneyaware says:

          You can’t opt out of EPF if you have contributed once as it’s as per government policy. It comes in package – employers + employee

          • Robert says:

            No I am asking in the case when I have never contributed. I am joining a new company. I don’t want to contribute employee’s share to EPF. But I want the employer to contribute Employer’s share to EPF, EPS etc not to me but to the EPFO. My basic is well above 15k
            Is this possible ?

          • bemoneyaware says:

            No it’s either both or none. You cannot choose to let employer contribute to EPF and you not.

  72. Gaurav Bhardwaj says:

    How to calculate PF in the case of Half Day Absent.
    If i have taken half day absent, how will PF calculation done for PF contribution.
    and how will it come in ECR.

  73. Sandeep Kumar Agrawal says:

    I have a question:

    I have worked on Company A from March 2006 to October 2008.
    Then I shifted my job and worked on Company B from November 2008 to November 2011.
    Then I shifted again to Company C and working there since November 2011.

    Both my PF A/Cs in Company A and Company B remained unoperative until April 2015 as I did not transferred the balance in my old PF Accounts to the new Accounts.

    I have initiated and get the balance transferred from PF A/Cs of Company A and Company B to Company C in April 2015 and the transfer has already been done and the balance is now reflecting in my New PF A/C.

    However, the EPFO did not pay any interest on the amount accumulated on my PF A/Cs in Company A and Company B.

    So, my question is:
    1) Do I entitle to get the interest for the three years even though the balance transfer from old PF to new PF account is initiated after three year (as in my case)?

    2) If yes, what I need to do to get the interest from the EPFO.

    Thanks,
    Sandeep

  74. Amith says:

    Good article… but http://www.epfindia.com/MembBal.html link is broken

  75. Sanjeev says:

    Hi,

    In last Financial Year , I withdrew my PF amount in full (after resignation from that Co. ) before 03 yrs of continuous service & the PF amt. was more than 30,000/- (PF amt- 3.28 L + amt of 12758/- in total against Family pension). I want to know whether PF withdrawn in last financial year-(recd in Nov. 2014) is taxable ( PAN no. informed already to EPFO) . In case , PF withdrawn in last financial year (2014-15) is taxable , whether the EPFO has already released the amt . after deduction of Tax Or we have to do self assessment & declare the same in ITR.

    In case we have to declare the PF amt. in ITR — under which head we shall mention the same. Further , pls. also intimate if full amt. of PF withdrawn will be taxable which includes the Employee portion as well as Employer portion & interest accrued on that. How to calculate Tax on That. If we donot have teh PF Statements for all the years , how can we calculate the Emplyee & Employer contribution & interest theron.

    Even if it is exempt from tax for last financial year, do we have to declare the same under any head while filing ITR just for reporting purpose but not to be taxed.

    • bemoneyaware says:

      When the PF amount is withdrawn before five years of continuous service, it is be taxable in the hands of the individual as if the fund was not recognised from the start of the contributions.Provident Fund would be treated as an Unrecognised Fund from the beginning.

      The employer’s contribution and interest, thereon, would be fully taxable as as profits in lieu of salary or ‘salary income’ in the hands of the individual.
      The employee’s contribution would be taxable to the extent of deduction claimed under Section 80C, if any, under the Income-tax Act,1961 and
      The interest earned on employee’s total contributions would be taxable as ‘income from other sources’ in the hands of the employee.
      It is explained in our article Tax on EPF withdrawal

  76. Can a present company transfer an employees previous pf amount to current current company Using by UAN number. If so or if not….. what are the procedures at present I would like to know. If a present employer can transfer easily of an employees previous PF amount to their current company…… Can they present company transfer the amount without any consent of previous company ?

  77. Suresh Muke says:

    Can you explain us about – Employees’ Deposit-Linked Insurance Scheme, 1976

  78. Rahul v. Rokade says:

    R/sir
    Thank u for this information.It is guidline to me. but i get confused at following amount…of Rs. 6501/- , is it Rs. 15001/-….pls convey

    “Employees drawing basic salary upto Rs 15000(From Sep 1 2014 salary limit has been increased to Rs 15,000 before it was Rs 6500) have to compulsory contribute to the Provident fund and employees drawing above

    Rs 6501/- (This is confusing amount)

    have an option to become member of the Provident Fund.”

    from
    ur sincerely

    Rahul v. Rokade

  79. EPF India says:

    Hi,

    I want to ask you that if for example i am working in “a” organization and join “b” organization, in that case do i need to close PF Account from A organization and open new PF account on the name of B organization?

    • bemoneyaware says:

      You would get a new PF number or Member ID . You transfer EPF from a organization to b organization.
      As explained in our article FAQ on UAN number and Change of Job
      PF number now called Member ID is linked with Employer. UAN number is linked with an employee
      Employer submits the EPF(Employee Provident Fund) money to the EPFO (Employee Provident Fund Office) on behalf of the employee. This includes both the employee contribution, employer contribution, Employee Pension scheme. Member Id or Member Identification Numbers is the number given by EPFO to allow the employer to submit EPF money of employee. It’s like Employer opens an EPF account for its employee and contributes to that account every month. Member ID is the account number of employee in the EPFO. When the employee changes the job then the new employer will open a new account number for it’s employee in EPFO. So a new Member ID will be allotted to employee. Member ID is same as PF number earlier. So you would have as many Member ID’s as the number of employers contributing on your behalf to EPFO.

      Member ID or PF Account Number is in the format given below. PF Account Number may not have Extension code. Ex: For someone who works in Bangalore the code can be BG/BNG/012345//789.

      EPFO Office Code/Establishment Code(Max. 7 Digits)/Extension(Max. 3 digits)/Account Number (Max 7 digit)

      How does Member ID differ from UAN number?

      An employee will have one UAN or Universal Account number, which as the name implies will remain the same. It will maintain all your Member Ids. Its like you can have multiple Saving Bank account but all these are tied to your one Permanent Account Number or PAN. So when you change your job and the new employer, if contributing to EPF, gives you a new Member ID. This new Member ID has to be linked to your UAN number.

  80. Perose Khan H says:

    Hi Sir,

    This is perose. I have tranferred my previous organisation PF and its successfully transferred but my pension is not transferred. Whether pension will be transfer as money or it will be transfer as service (No Of years)? Please clarify

    Note: I have around 5 years of experience, recently current organisation enrolled me in UAN.

    Thanks in advance

  81. amar singh says:

    sir main army se retired hun or bijli vibhag men contrect base par 3 saal se hun.meri age 50 year hai. pay 9400 hai jisme Employee Share 1128,Employer Share 345 or /Pension Contribution 783 debit hota hai. mujhe pension kab or kitni milegi.please help me.

    • bemoneyaware says:

      Sir aap aapni EPS pension Pension calculator se calculate ka sakte hain.
      The maximum amount of pension as per the Pension formula would be = (6500 * 35)/70 = Rs 3,250 per month or Rs. 39,000(3250 * 12) per year.

      Pension depends on your contribution to Pension Fund and your service. You may be drawing very high salary, but your contribution to Pension Fund will be only Rs. 541 and and after Oct 2014 Rs 1250 max. This is because, as per EPF scheme, employer has to remit 8.33% of actual salary or of Rs. 6500 or 15,000 whichever is minimum. If your contribution in terms of amount or number of years is less, your pension will be less.

  82. Sunil says:

    I have lost password of UAN account and also lost registered mobile number.

    Is there any way to recover password or register new number for UAN account?

  83. Ranganath K says:

    Sir, I am running in 50 years age, but still i am not completed 50 years age. As am I eligible for applying pension. My total service has completed 23 years & my working organisation has been closed.

  84. tanuja says:

    my name is tanuja? already cutting inmy account epf? are u eligable to atul pendion youjana? please clarifications? details? to the answer?

  85. SHARAD SRIVASTAVA says:

    I have done transferred my PF from previous employer to present employer, In the detailed passbook Employee and employer share transferred to my new PF account, But pension fund in showing 0.
    Please suggest me regarding pension fund that is accumulate in my previous employer and by which method I can get?

    • bemoneyaware says:

      There is confusion about pension fund. Theoretically it should be transferred along with your EPF . But it’s not happening.
      If you have less than 9.5 years of service you can withdraw EPS by filling form 10C. It is not online.
      If you have more than 9.5 years of service you will get scheme certificate which you will use later to claim pension from EPS.
      Our article Withdrawal or Transfer of Employee Provident Fund explains it in detail

  86. Provident is one of the most successful small saving scheme meant for retirement planning of employees. EPF mandates employers to contribute equivalent contribution to that of employees for their benefit.

  87. Mohit says:

    I am confused at your example of someone starting with a basic salary of 20000. If his basic salary is 20000, he is not supposed to be covered under PF scheme. Why would his employer deduct PF in the first place??

    • bemoneyaware says:

      Mohit any one upto 15,000 of income is compulsorily under EPF. Above income of 15,000 one may or may not go. Usually people go. People with basic salary of 50,000 or 1 lakh are also members of EPF.
      Why the doubt on Rs 20,000

  88. praveen says:

    Great article and sincere follow up to various questions from the users.
    Hats off to you.

    Got one question:
    a) Will there be difference in the amount of pension received and when the pension amount is received between these 4 pension schemes?
    b) I guess a person will be applicable to receive only any one of these pensions depending on total years of service and retirement age. Please confirm.
    c) Person will start receiving the pension only after the age of 58 or after 50 (after deduction of 4% mention in your article). Please confirm.

    1) Superannuation Pension:Member who has rendered eligible service of 20 years and retires on attaining the age of 58 years.
    2) Retiring Pension:member who has rendered eligible service of 20 years and retires or otherwise ceases to be in employment before attaining the age of 58 years.
    3) Permanent Total Disablement Pension
    4) Short service Pension: Member has to render eligible service of 10 years and more but less than 20 years.

  89. shubham kale says:

    Directors of private limited company who are getting salary or remuneration
    should company deduct the pf from their salary or remuneration,what is the meaning of employees in employees provident fund act are the directors of company covered under this defination

  90. Can i withdraw a money EPF any time i want…..?

    • bemoneyaware says:

      Yes and No Sir.
      The purpose of EPF is to save for your retirement
      You can take get money from EPF if you have valid reason like buying house or you are unemployed for 2 months after leaving the job.
      You can transfer it any time

  91. Manas says:

    Hi,

    My company is cutting money for EPS(8.33%) fro salary.
    My query here is if I leave the company before 5 year service then will I get my EPS money back or not?
    If yes then how can I get?

    Thank you.

    • bemoneyaware says:

      Yes you will get your EPS money. Either you can get it transferred or withdraw it. Form 19 used to be filled to withdraw EPS.
      Do you have UAN number? Incase you join a new job it would not be possible to withdraw,

      • Kalpit Mhatre says:

        I heard that the minimum amount of 6500/- is changed to 15000/-. Is it true ? Also there are updates that now employee wont be getting interest if he withdraws PF before certain period and so they have introduced UAN No. Can you please help us to update.

  92. seetharama raju k says:

    sir/madam, can i withdraw my pension fund amount with interest. My age 47 years. Service completed 18 years. Thank you.

  93. Ramesh says:

    Hi,
    Thanks
    Need help to clarify couple of queries. Currently i am working in an organization since last 8 Year (Joined the organization in June 2007). I have UAN number and login detail. I have downloaded my passbok and having couple of queries as following:-
    1. Since I joined the organization in June 2007, buy my passbok showing the starting entry with
    OB Int. Updated upto 31/03/2010 and then next months of 2010 and subsequent Years (up to date-April 2015), Why previous months/year (before 31/03/2010 not showing in passbook
    2. I noticed interest for Pension contribution not calculated by Gov.? Why ?
    3. I also noticed Pension contribution changed from Rupees 541 to almost double starting 2014
    4. Before this organization, I worked on four other organizations. I have PF number of all previous organizations except one. How I can transfer all amount to this new PF (UAN numer ) and where i need to contact. It will be great help if there is contact number for same. ( I worked in Delhi and Bangalore organization)
    5. Finally, if I want to withdraw the amount for home construction/emergency purpose ?

  94. Ramesh says:

    Really very informative…It cleared lot of doubts

  95. susmitha says:

    i served in an institution four years and resigned .i got my EPF settled ,
    my EPF balance shown was EE amount as rupees 39677 and ER amount as 12149. .But after settlement I got Rs 78139.I cannot understand this calculation.
    please help min calculation

  96. Parshav says:

    What is best to withdraw PF amount or to transfer??
    the interest i earn over my PF amount will it be taxable??
    Who’s responsibility to update PF account no update in UAN?

  97. I want to withdraw only EPS amount and tranfer EPF ampount.
    Is it possible and how…?

    • Kirti says:

      You can apply for withdrawing EPF only if you are not employed for two months after leaving the previous job. It is recommended to transfer EPF account at the time of joining a new company instead of withdrawing it as EPF forms the debt part of your portfolio and gives good tax-free returns.

      For EPS, if the service period is less than 10 years, you have an option to either withdraw your corpus or get it transferred by obtaining a ‘scheme certificate’, if there is a break in service. This way the number of years of service that you have put in gets transferred to the new account that you open in the new organisation.

  98. Biswanath Roy says:

    will you please tell me that where the accumulated money goes in EPF, which i had contributed throughout my service period for pension scheme, after death of mine & my wife?

    In “Atal Pension Yojana” they returned the 8.5 lakh money to the nominee after death of the pensioner & his/her spouse who would getting the Rs. 5000 as pension.

    • Kirti says:

      Sir Good question Sir.
      The money goes into a fund managed by the Employees’ Provident Fund Organisation or EPFO , which comes under the labour ministry. The government allows employers to manage own provident fund schemes, provided they adhere to certain conditions.
      The private trusts have to seek separate approval from the Income Tax Department for tax benefits on employees’ contribution to the fund.

      Where your money is invested: till Apr 2015 .Only in fixed-income securities. Investment in equities is not allowed. The securities where your money can be invested are central and state government bonds, bonds issued by public sector companies, fixed deposits of public sector banks and mutual fund schemes that invest in government securities.
      Going forward:
      According to the investment pattern for 2013, the EPFO could invest up to 55 per cent in government securities, up to 55 per cent in debt securities and term deposits of banks, and up to five per cent in money market instruments. The new pattern will allow the organisation to park 45-50 per cent of its funds in government securities, 35-45 per cent in debt securities and term deposits of banks, up to five per cent in money market instruments, 5-15 per cent in equity and related instruments and five per cent in asset-backed securities and units of infrastructure investment trusts.
      For more details one can refer to Business Standard article EPFO may invest up to Rs 90,000 cr in equities

  99. ARUN SHARMA says:

    What happens… When an employee joins a new company and transefer his PF balance from his/ her EPF Account.
    1. Does his/ her EPS balance also automatically transefer in another EPS Account? Or, Do we need to transefer the EPS balance separately? If yes, what will be the procedure??
    2. Does his/ her Account with EPS remains same, and his/ her EPS deductions continues to increase the previous EPS balance in the same former EPS Account?

    • Kirti says:

      Good question Sir.
      Earlier before UAN to claim EPS one had to fill separate form. now with online transfer of EPF it seems that EPS is also getting transferred.
      We are trying to find more about it and shall update as soon as we have information.
      EPS contribution would remain same Rs 1250 per month of Rs 15,000 per year from Oct 2014. This contribution limit is set by EPFO

  100. ARUN SHARMA says:

    Hi,

    Ofcource this knowledge is helpful, but I think there’re many changes have been made in last few year, which needs to be updated with this sharing.

    I have a “question???”.

    What will be….
    If an employee leaves an organisation, and withdraws all amount from EPF, at the same time he/ she joins a new company, and start contributing in different EPF & EPS accounts opened by new company.

    1. Can he/ she withdraw or transefer balances from his/ her former EPS Account?
    2. If yes, so is there any specific age or time of service which must be completed for being eligible to do so?
    3. Will he/ she get interest on that amount balance with EPS? If yes, so what will be the interest rate?
    4. What will be the procedure to withdraw or transefer balances from EPS Account?

    • Kirti says:

      Yes Sir we shall update this post ASAP.

      Sir now with UAN number it would be difficult for one to withdraw from the EPF account if one is working. Transfer would be the only option.
      EPS would also get transferred (looking for confirmation on that)
      EPS does not earn interest.
      Earlier Form 19 used to be filled to withdraw EPS.

  101. Ritika says:

    As we all know that PF ceiling limit has been increased to 15000 from 6500, I just want to confirm that what all components 15000 includes.
    As before we used to deduct pf on basic+DA so is it same or not.

    • Kirti says:

      PF limit has been increased but calculations remain same.
      Covered in depth in our article What are EPF,Pension and Insurance Changes from1 Sep 2014
      Now an employee with monthly salary above Rs 6,500 but up to Rs 15,000 will also be covered under the three schemes. Unlike PF and insurance scheme, voluntary membership is not available under the pension scheme for an employee with monthly salary of above Rs 15,000.

      The government has also fixed monthly pension benefit at Rs 1,000 for the financial year 2014-15 . Those who started job after 1 Sep 2014 and earning more than 15,000 Rs in basic and DA will not be contributing to the Pension scheme.

  102. Bhuvaneswari P says:

    Hi Sir,

    Pls clarify me on the below :

    how should NCP be shown in the following case :
    1) if a person is drawing 25,000/- p.m and is contbn is 1800/- pm. If due to 3 days lop his salary gets reduced to 22500/- (25000/30*3days), does his contbn remains same @ 1800/- or shud 15000/- ceiling and 1800/- contbn be reduced proportionately????

    2 ) if there will not be any change in 15000/- ceiling and 1800/- contbn, shud NCP be shown ?

  103. M.D.AHUJA says:

    AGE INCREASE PROPOSAL FOR EPS FROM 58 TO 60 IS IMPLEMENTED.

  104. Michael Adackapara says:

    I worked as a Professor in Mumbai from 1970 to 1974. I know provident fund contributions were made at that time. I did not get a Provident Fund account number. Then I migrated to the US and I want to know if I am eligible to get any of the provident fund contributions I made during my four years of employment in Mumbai. I went back to the college where I worked and they were not very helpful. They could not provide me with my Provident Fund account number.

  105. Rahul says:

    Hi,

    Very Helpful post indeed!

    Could you kindly help me out in my situation?

    I recently joined my second job, after a break of two years for studies after my first job.

    I got my PF statement from my previous employer, that shows my EPF amount, wherein the employer’s contribution to PF stands at my contribution minus 541, hence proving the 541 amount went to EPS.

    Now when I checked for EPF balance at EPFO website, that also shows the EPF amount, and not the full amount including EPS.

    My query is, where can I check my EPS balance, and get it transferred to my new account or alternatively withdrawn?

    thanks!

    • Kirti says:

      Hi Rahul,
      Congratulations on your new Job.
      You can transfer your old PF account to the new one. Do you have a UAN number?
      You can transfer your old PF account to new one through:
      UAN : Earlier, transferring EPF account from one employer account to another was a tedious process. But the UAN will do away with the need to transfer your funds at all. All you have to do is furnish your UAN and KYC details to new employer. Once the new employer verifies these details, the money from the older account will get transferred to the new account. But for old accounts (opened before the allotment of UAN), you still need to apply for funds transfer either in digital or physical form. Our article UAN or Universal Account Number and Registration of UAN explains about UAN
      Or
      OTCP: EPFO launched its Online Transfer Claim Portal (OTCP) on Oct 2, 2013 to ensure timely transfer of EPF account from one employer to another when an employee changes job. Our article Transfer EPF account online : OTCP explains process in detail.

  106. Saurabh says:

    Hi

    Do we have any medium in place where we can check our EPS Balances?

  107. shankar bhat says:

    Dear Sirs
    Can you please let me know if employees working in Temples / Religious places are covered under the PF Act. In their case also should they be more than 20 employees or if there are lesser number also they will be covered under the PF rules?

    Thanks in advance.
    Shankar.

  108. Umesh says:

    I’ve been working for 2 years, I will be resigning to pursue my higher studies. When I withdraw my PF will I get both EPF and EPS?

    Thanks
    Umesh

    • Kirti says:

      Yes Umesh. You would get both EPF and EPS but it would be taxable.
      When the PF amount is withdrawn before five years of continuous service, it is be taxable in the hands of the individual as if the fund was not recognised from the start of the contributions.Provident Fund would be treated as an Unrecognised Fund from the beginning.

      If you are planning to join back after higher studies then you can leave your money in PF. For 3 years it would earn interest.
      Best of Luck for higher studies

  109. Anil says:

    An employee resigned from our company on 27Feb2015, but we are making his FFS on 10Apr’15 we are making his date of exit from PF is on 10Apr’15. But 27Feb’15 to 10Apr15 during this period his date of joining in the new employer is 25Mar’15. During his PF A/c transfer there will be clash of date of leaving from previous employer is 10Apr’15 and date of joining is 25Mar’15. How to tackle this?

    • Kirti says:

      Anil some questions that I have are:
      What was the last working day of the employee?
      Did the employee serve the notice period after date of resigning?
      Till when did the company contribute to EPF – Feb or also Mar
      Typically HR has to clear off the settlement within two weeks of date of leaving the company.

  110. Jayeshkumar Shah says:

    I started my pension at age of 50 years with reduction. There was a notification to pay minimum Rs.1000 pension to every pensioners. I was receiving Rs.835 per month. I was not paid Rs.1000 as minimum amount. What should I do? Is there any application or form to be filled out for it? Is this due my early started pension at reduced rate?
    Thank you for your help.
    Regards,
    Jayesh

  111. Prakash G R says:

    Method-1

    If company consider total basic salary above the limit fixed 6500.00 for PF calculation. Employer has decided to contribute on total basic salary which is 12 % on 7500.00 equal to 900.00. EPS Share is fixed to 541. Balance (900-541) goes to EPF account 359.00. You may be thinking that, what about 3.67%?, Here you don’t need to care about it.

    Contribution Towards Calculation Amount
    EPF Employees share 7500 x 12% 900
    EPS Employer share 6500 x 8.33% 541
    EPF employer share 7500 x 12% (-) 541 359
    EDLI charges 7500 x 0.5% 38
    EPF Admin charges 7500 x 1.1% 83
    EDLI Admin charges 7500 x 0.01% 0.75 ( Round up to Rs 1/-)

    In this contribution I have one doubt about EDLI contribution. always EDLI contribution will be calculated EPS basic salary (6500/-). but hear calculated on earned Basic Salary (7500/-).

    Please explain me why we should calculate by earned basic salary (7500/-)

  112. Inderjeet says:

    Sir,

    Please help in my EPS case. My date of joining is 01.04.2014 & date of leaving job is 31.12.2014. My monthly contrybution is Rs.541/- for EPS. But when I am withdrawn my EPS amount I got only RS.3876/- instead of Rs.4869/-. I know that there is Table “D” formulate the amount, but still amount is not matched. Sir, Can you explain me the calculation. My basic salary is 6500/-.

  113. Rama Rao says:

    While explaining Employee Deposit Linked Insurance Scheme (EDLIS), the author made a statement “usually employers opt out of the EDLI scheme by going for group insurance scheme which usually provides higher coverage to employees without any increase in cost to the employer”. This may be misleading. I observed that in a specific case, group insurance scheme with an Insurance Company costed the employer around Rs.30,00,000 for about 1000 employees whereas 0.5 percent of basic wage subject to the prescribed max. limit was just around Rs.5,00,000. The statement that opting out from EDLI and going for a group insurance scheme doesn’t involve any increase in cost to the employer.

    • Rama Rao says:

      is not correct.

    • Kirti says:

      Thanks for input Sir. In the article we have mentioned that usually employers opt out of the EDLI scheme by going for group insurance scheme which usually provides higher coverage to employees without any increase in cost to the employer. But it may not always be the case.
      Sir have you come across a situation when in spite of higher cost Employer moved to Group Insurance

  114. s. k. jain says:

    I have started getting monthly pension under EPS. Let me know if this is taxable and if so under what head?

    It does not fall under the definition of salary as it is not being paid by employer. It does not fall under the definition of pension as it is not paid by employer. It doesn fall under family pension as I am receiving it directly. It seems more like annuity payment from a super annuation fund which is tax exempt.

  115. shweta pandey says:

    thanks and very much thanks for all information this website so Am Relay get knowledge this side So thanks Again …….

  116. Anshul says:

    Hi,

    Thanks for writing this article. A lot of really useful information.

    One question: The EPF account balance that we receive from the EPFO website (through SMS), does it include details of Employer’s contribution to the Pension Scheme as well?

    If not, is there a way for me to find out the Pension Scheme fund balance.

    Thanks again,
    Anshul

  117. Yash says:

    Hi,

    I got the PF account details from SMS, but had a question does the EE and ER portion also include interest earned? As in my case, it seems to only show the principal me and my employer have contributed.

  118. PP says:

    Hi,

    Thanks for the detailed information you provided on the topic! It clearly reflects how much effort you must have put in obtaining all the info.

    After reading this article, when I checked the salary deduction practice at my father’s business, I was surprised to find that for last 3 years, for 3-4 of his employees with salaries over 6500, 8.33% of their salary was getting put in their EPS account even if it was much more than 541! 1.67% was put in their EPF accounts.

    This incorrect practice went on for last 3 years at our end, but surprisingly there were no checks/corrections from the PF office, who went on putting over Rs. 541 in employees’ accounts month after month (which otherwise should have gone in their EPF A/c). It is hard to believe that their software didn’t throw any red flags to prevent such a blunder.

    So I went to the regional PF office and brought the issue to their attention. They agreed it should not have happened but said now nothing can be done since the accounting for those financial years is already complete! I’m not sure if there is a way to make them go back and make corrections.

    Also, you mentioned that typical employer contribution is 12%, while for some industries (like beedi, jute, etc.) it is 10%. My father has a pharma-related business and he has been contributing 10%. Is it there a clear-cut mentioning anywhere stating if it should be 10% or 12% or on your choice?

    • admin says:

      Thanks Pratham. Thanks for sharing the details of how you went to regional EPF office. It would help others too.
      No it is not a choice of 10% or 12%. As per EPF website there are specific cases for 10% deduction. Hope it helps. Quoting from it:

      As per amendment-dated 22.9.1997 in the Act, both the employees and employer contribute to the fund at the rate of 12% of the basic wages, dearness allowance and retaining allowance, if any, payable to employees per month. The rate of contribution is 10% in the case of following establishments:

      Any covered establishment with less then 20 employees, for establishments cover prior to 22.9.97.

      Any sick industrial company as defined in clause (O) of Sub-Section (1) of Section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985 and which has been declared as such by the Board for Industrial and Financial Reconstruction,

      Any establishment which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth and

      Any establishment engaged in manufacturing of (a) jute (b) Breed (d) coir and (e) Guar gum Industries/ Factories. The contribution under the Employees’ Provident Fund Scheme by the employee and employer will be as under with effect from 22.9.1997.

      • analyst says:

        Thanks for directing to the appropriate source. Its good to know the exact underlying rule regarding 10%/12%, because up till now I was getting all uncertain, unreliable answers to my inquiry. This again underlines the great job you guys are doing!

        • admin says:

          Thanks Pratham for your encouraging words. Infact we started this blog because we also found incomplete info and decided to fill the void.

  119. MALLI says:

    very useful

  120. Voluntary Provident Fund, Difference between EPF and PPF « Be Money Aware Blog says:

    […] Public Provident Fund(PPF). This is continuation of our earlier posts on Employee Provident Fund Basics of Employee Provident Fund: EPF, EPS, EDLIS, Withdrawal or Transfer of Employee Provident Fund. For employees who are covered under PF, […]

  121. JaiKumar says:

    Hi Thank you for very clear and Nice post.

    One clarification, in the PF calcumation section you have mentioned 3 methods companies may use. In the illustation “How much would one save by investing in EPF” the calculation says employer will match 12% “(EPF contribution is 3.67%, EPS 8.67%)”, However the table “epf_returns.jpg” shows employee contribution of 28800 and company contribution of 8808 for the first year. Now if company is contributing 12% then it should be 22308(20000×12% x 12 – 28800 and considering EPS 541Monthly EPF should be 20000×12%-541 x 12 = 22308). If the company contributes only 8808 instead of 22308, they are just contributing total of 6.38%(3.67% for EPF plus 541monthly for EPS) and their %contribution for EPF+EPS goes down Year on Year.
    Please provide your thoughts.

    Note : I believe/hope as of now non of the establishments will work with the method of considering Rs6500 as the guideline amount for their EPF contributions (This is my experience but I may not be same for others). (However I do know a lot of companies trying to make the Basic of the CTC as low(stupidly low maybe) as possible to save on company contribution – This happens mostly in fully indian owned companies and not in MNCs)

    Thanks
    JaiKumar

    • admin says:

      Thanks JaiKumar. The calculations can be verified by using the EPF calculator
      Starting Basic Pay is Rs 20,000
      Your Yearly contribution = 20,000 * 12* 12 = 28,800
      Your company yearly contribution to EPF = 20000 * 3.67 * 12 = 8,808
      Total Ist year contribution is: 37,608
      Hope it helped!

      • JaiKumar says:

        Hi,

        I think the calculator needs to be updated to consider the company contribution as {[12%*(Basic+DA)]-541} * 12.
        For this Example it should be, {[12%*(20,000+0)]-541} * 12 = 1859 * 12 = 22,308.

        The calculator considers company contribution to EPF as 3.67% which is to be corrected as 12% – 541. The calculator assumes that the company works out the EPF with the idea of Maximum Basic+DA being 6500. I belive this might not be the case in practical scenarios. I mean if someone has a Basic Salary of 20000, they will be contributing Rs2400 PM from his/her salary and company should be contributing the same amount for EPF+EPS. So company contribution for EPF should be total company contribution -(minus) 541 PM.

        If still anyone has doubts please check your salary slip / salary structure papers, one of which should clearly show the company contribution especially where the salary is mentoined in CTC(Cost to Company) format.

        Thanks
        JaiKumar

        • admin says:

          Yes you are right JaiKumar, the calculator considers the Employer’s EPF contribution as 3.67%. Your suggestion is good, we need to have a calculator suggested by you. We shall work on it and update the Calculator once it is done.
          Thanks a lot.

  122. santhosh says:

    1. What is the maximum of VPF contributions

    2. PF deduction ( Ex. Gross salary is 20,000/ in this Basic + DA is 4,500/ (As per minimum wages act) is it ok or we have to in-cries the Basic + DA please help me.

    please revert back to me If any amendments or notification please send me it is very grateful to you.

    Thank you
    Santhosh

    • admin says:

      Santosh, Maximum VPF contribution can be 88% of your basic salary(12% is compulsory)(We are doing a post on VPF with detail)

      I didn’t understand the second question. Could you expand on it?

  123. Withdrawal or Transfer of Employee Provident Fund « Be Money Aware Blog says:

    […] our earlier post Basics of Employee Provident Fund: EPF, EPS, EDLIS we had talked about What is Employee Provident Fund(EPF), How is it Calculated, What is Employee […]

  124. Sharat Trehan says:

    My name has been mis-spelt in the PF records, and this mis-spelling crops up in the PF slip. My concern is that I might have a problem at the time of withdrawing the balance in my PF account. I have already written twice to the Regional PF Commissioner in this regard but nothing has come out of it yet. What should be done in the given circumstances?

    • admin says:

      Sharat your concern is justified, you need to get it corrected. Twice you have written to Regional PF Commissioner. Do you have the written acknowledgement that you submitted the letter? Was the letter attested by your office?
      We shall try to find out. In the meanwhile we found these two links hope they would help.
      Mistakes in PF slips and RTI website
      name change in pf account.
      Quoting from RTI’s
      Better to get the name corrected as wrong name may create Income tax problem and also while getting refund of PF amount. U can write to concerned PF Commissioner where U have PF account, with proof of name through your present employer. If name is not corrected despite completing all the formalities you can file RTI appln to activate the PF Commissioner Office.
      Is possible please update us on how you are getting it changed?

    • admin says:

      Sharat you can file a EPF grievance redressal form online. The Epfi Grievance Management System

      If that doesn’t work you can maybe file RTI. For details checkout Jagoinvestor’s article on filing RTI. Though article is about RTI for Withdrawal or Transfer of EPF you would get to know basic steps for filing RTI.
      We would be obliged if you could share your steps taken, it would help other readers. Best of Luck.

  125. Paresh says:

    Article itself reflects great and hard work behind it.

    Just read the post 2-3 times and still require to read more times to grasp it completely.

    But just focusing on last sentence:”Does it make sense to contribute to EPF?” is it mean that you do not find sense contributing EPF?

    • admin says:

      Thanks Paresh for encouraging words. No we believe that one should contribute to EPF but many do not. Hence asked this question.

  126. sujatha sathya says:

    very helpful post.
    much needed

Leave a Reply

Your email address will not be published. Required fields are marked *

Disclaimer : This is an information based website, meant for providing assistance to it's readers. We do not hold any responsibility for mis-information or mis-communication.