EPF (Employee Provident Fund), Meaning, Benefits & Process

The Employee’s Provident Fund (EPF) is a savings scheme for employee class, managed by the EPFO, a non- constitutional body that promotes to save money for retirement. EPFO also operates in Malaysia. It’s a mandatory contribution scheme where both the employer and employee make regular fix percentage contributions for the employee’s retirement savings. In India employee & employer have to contribute fix 12% of employee basic salary & dearness allowance.

EPF (Employee Provident Fund) was launched on 15^th Nov, 1951, under the employee Provident Fund Ordinance for the motive to secure the after-retirement life of employee. Later it was replaced by Employee Provident Fund Act 1952.

EPF are managed by a non-constitutional body- EPFO (Employee Provident Fund Organization). EPFO works under the central government & perform some important role towards the employees’ financial benefits.

Important role of EPFO

1. To ensure that every registered employee in country must have a single EPF account.
2. To make sure the process of making EPF accounts & withdrawal of the funds are easy for common people.
3. EPFO assign a permanent 12-digit UAN number to every EPF account holder, an employee can change the employer but UAN number will remain the same.
4. Encouragement & promote saving culture in employees
5. To solve the grievances about the EPF account & process.
6. To make easy online process of EPF

Benefits of EPF (Employee Provident Fund)

1. Capital Appreciation: – Due to mandatory EPF accounts, Every employee gets a Lum sump tax free amount after retirement to secure the post retirement life.
2. Emergency Fund: – A employee can also use EPF account balance in any emergency situation or receive loan against the EPF accounts.’
3. Tax Savings: Current rate of interest in EPF in India is 8.15% PA and its completely tax free.

Eligibility criteria for EPF accounts:

Employee Provident Fund can be start for all public & private employee in India, it means all working population can apply for EPF accounts

Any organization that has at least 20 employee are liable to provide the benefits of EPF to their employees in India.

How to create EPF account: –

1. First we need to know your UAN Number, Below mention is the process to know the UAN number

1. Visit:- https://unifiedportal-mem.EPFindia.gov.in/memberinterface/
2. Click on “Know your UAN” option, you will find this on right side corner of the page.
3. Fill your phone number & Captcha, and generate the OTP, fill the Captcha again and click on the submit button.
4. Fill Your Name, DOB, Aadhar (you can also use PAN & member ID) & captcha & click on “Show My UAN” button.
5. You will get your UAN Number, (Note: – You don’t get any UAN number if you are not a employee or never work as employee).

• 2. After getting the UAN number, you have to active the UAN Number,

a. Visit on :- https://unifiedportal-mem.EPFindia.gov.in/memberinterface/

b. Click on “Activate UAN” option, you will get this option just above the “Know Your UAN” Option.

c. Fill the, UAN number, Aadhar Number, Name, DOB, Mobile number & captcha, Generate the OTP, after validating the OTP, your UAN number will be activated successfully.

    3. After activating the UAN Number, you have to create login ID password to login your EPF account, to generate new password, use forgot password process & create a new password.

4. After all this you have a successfully activated UAN Number & Login Password, Visit:_ https://unifiedportal-mem.EPFindia.gov.in/memberinterface/    and login your EPF account by UAN Number & new generated password.

You can withdraw EPF funds online by EPFO online platform, there is some rules for EPF withdrawal

When can individual withdraws complete EPF amount–

1. On or After Retirement, a individual can withdraw all the EPF amount.
2. If you are unemployed for more than 2 months
3. If you are switching the job and in this duration without job process is more than 2 months (Notice period does not count )

When can individual withdraw partial EPF amounts–

1. Any medical emergency
2. For Higher education for yourself or any family members
3. For purchasing assets.
4. For home renovation ‘
5. Or any other important events