EPF

EPF: Overview

The Employee Provident Fund Scheme or the mentioned scheme was introduced in India in the year 1952.This scheme was introduced as a replacement to the existing Employee Provident Fund Ordinance,1951 and is better known to all as the Employees’ Provident Fund and Miscellaneous Act,1952.
 

The mentioned act is administered and managed by the Central Board of Trustees which consists of representatives from three parties, namely, the government, the employers and the employees.  The Employees’ Provident Fund Organization (EPFO) assists this board in its activities. The EPFO lies under the direct jurisdiction of the government and is managed through the Ministry of Labor and Employment.
 

The mentioned scheme basically aims at promoting savings to be used post retirement by various employees all over the country. The Employees’ Provident Fund Scheme or the mentioned scheme is a collection of funds contributed by the employer and his employee on a month on month basis. The deposits are made regularly. The amount to be contributed towards this fund is fixed and decided upon at a specific rate which is pre decided. The scheme provides interest to the employees. The amount of interest to be received on the deposit along with the total accumulated amount is totally tax free, i.e. the employee may withdraw the entire fund without worrying about paying any kind of tax on it. This feature makes this scheme the top most loved and accepted schemes across the employees as it takes care of long term saving post retirement. The accrued amount may also be withdrawn by the nominee or the legal heir of the employee post his death or can be withdrawn by the employee himself post resignation. Hence, it assures security in monetary terms to the employees during times of unemployment and also to the employee’s family in the case of sudden death of the employee.
 

The above mentioned scheme caters to a huge section of people spread across the country. Owing to the huge number of transactions associated with this scheme, it is considered to be one of the largest organizations and is acknowledged globally. The scheme caters to the need of 5 crore and more persons. The establishment runs three schemes, namely:
 

  • Employees’ Provident Fund Scheme, 1952
  • Employees’ Pension Scheme, 1995 which managed to replace the then existing Employees’ Family Pension Scheme, 1971
  • Employees’ Deposit Linked Insurance Scheme, 1976

The act legitimates the employees to avail benefits from provident fund, pension and insurance depending upon the category of the above mentioned schemes.
 

Advantages of the Employees Provident Fund Scheme(EPF)


The mentioned scheme is among one of the largest and biggest saving schemes available to Indian Employees. The key benefits of the scheme are mentioned below:
 

  1. Tax Free Savings: EPF Scheme provides certain interest on the deposits at a specific rate which is pre decided to the employees. Both the amount of interest to be received on the deposits and the actual deposited amount is deemed to be tax free by the Indian Government. Any kind of withdrawal made at maturity or post completion of 5 years of having availed the scheme is tax 100% tax exempted. However, if the amount is being withdrawn prematurely then the amount is not free of tax. This feature helps an employee receive special benefits in the form of added income to his savings in the form of interest. Any kind of contributions directed towards the EPF are liable to be tax deducted under section 80C of the Income Tax Act, 1956.
     
  2. Long Term Financial Security: The funds deposited in this account cannot be withdrawn easily and hence, helps in ensuring savings of the employee’s fund.
     
  3. Retirement Period: The accumulated fund under this scheme may be used at the time of retirement of the employee. This provides relief to the retired employee in the form of monetary security.
     
  4. Unseen circumstances: The funds so accumulated may be used by the employee in case of any kind of emergency in his/her life. The employee may choose to withdraw his/her fund prematurely. The scheme provides for such preterm withdrawals in certain special cases.
     
  5. Unemployment/ Income Loss: Under cases, where the employee is deemed unfit for the job or if he/she is forced to give up his/her current job owing to personal incompetence, then these funds may be used to meet their expenses.
     
  6. Resignation/Quitting of Job: The employee post resignation is free to withdraw his/her EPF fund after completion of two months of the date of having quit the job.
     
  7. Death: In case of death of the employee, the collected amount along with the interest is given to the employees’ nominee thus helping the employee’s family tide through difficult times.
     
  8. Disability of the employee: If the employee is no longer in the position to work then he/she may use these funds to help him/her get over the difficult time.
     
  9. Lay Off: In cases of sudden layoffs or retrenchment from job, this fund may be used by the employee till the time he/she gets another suitable job.
     
  10. Long run savings: A safe and full proof saving scheme for individuals wishing to have long run investments.
     
  11. Liquidity of funds: Easily liquefiable, this scheme acts as a sound source of income for an individual at the hour of financial crisis. The funds so obtained may be used to meet unavoidable expenses like medication needs or education needs.
     
  12. Pension Scheme: The employer not only contributes towards the PF fund but also makes the necessary contributions towards the employee’s pension which can be later used by the employee post retirement.
     
  13. Insurance Scheme: The act also provides for certain provisions whereby, the employer is required to make certain contributions towards an employee’s life insurance where group insurance cover is not present. This scheme ensures that the employees are properly insured.
     
  14. Accessible All Over: With the help of The Universal Account Number (UAN), the employees can freely get hands on their PF account via one single point. They can transfer their accounts whenever they make a shift in their current jobs.
     

Eligibility for Membership of EPF Scheme

  1. Employees need to become an active member of the scheme in order to avail benefits under this scheme
     
  2. Employees of an organization are directly eligible for availing Provident Fund, insurance benefits as well as pension benefits since the day from their having joined the organization. Any organizations employing a minimum of 20 workers are liable to give PF benefits to their workers.
     
  3. This scheme does not cater to the needs of people residing in Jammu and Kashmir.

Contributions to be made towards Employee Provident Fund

The Employee Provident Fund is a collection of funds contributed equally both by the employer as well as the employee. These contributions are made regularly on a month on month basis. The amount to be deposited towards this scheme is decided based upon a specific rate which is pre decided. The rate fixed depends upon the employee’s Basic pay along with the dearness allowance being received by him. An employee’s provident fund account is made up of contributions. Funds so accumulated under this scheme are treated as long run investments.

In general, the contribution rate is fixed at 12%, however, the rate is fixed at 10% for the below mentioned organizations.
 

  • Organizations or firms employing a maximum of 19 workers.
     
  • Industries declared as sick industries by the BIFR
     
  • Organizations suffering annual loss much more as compared to their net value.
     
  • Coir, guar gum, beedi, brick and jute industries.
     
  • Organizations operating under wage limit of Rs 6,500.

Contribution of the Employer Towards Employee Provident Fund

The minimum amount of contribution to be made by the employer is set at a rate of 12% of Rs.15000. This amount equals to RS.1800 per month. It means that both the employer as well as the employee has to contribute Rs.1800 per month towards this scheme. Initially, this amount was set at 12% of Rs.6500 which would equal to Rs. 780 to be contributed both by the employer and the employee.

The point here to be remembered is that the contribution made by the employee goes totally towards the provident fund of the employee, however, the contributions made by the employer is divided in parts between the employee’s provident fund, insurance, pension and also certain administration cost in the below mentioned manner.

Total contribution made by the employer = 12% of the salary, comprising of both the basic pay and dearness allowance which is distributed as 8.33% towards Employee Pension Scheme and 3.67% towards Employee Provident Fund.

Apart from the above made contributions an additional 0.5% towards EDLI along with certain administration costs towards EDLI and EPF standing at the rate of 1.1% and 0.01% respectively also has to be made y the employer. It means that the employer has to contribute a total of 13.61% of the salary towards this scheme.

Interest Rate Given on EPF

The current interest rate pertaining to the financial year 2014-2015 is fixed at 8.75%. The interest rate for the following financial year i.e. 2015-16 is scheduled to be declared in the month of January 2016.The latest reports suggest that according to the Central Board of Trustees (CBT) meeting, the interest rate for the year may remain same (8.75%) or might slightly increase. The required move will be made depending upon the suggestions made by the Finance ministry of India.

The accumulated fund in the PF account attracts certain interest. The interest so earned on this fund is 100% tax exempted. The interest to be earned is directly transferred to the employee’s provident fund account and is calculated depending upon a specific rate which is pre decided by the GOI.

Just like various other saving schemes run by individual states, the interest to be given under this scheme is fixed every year at a pre decided rate and is done by The Government of India along with The Central Board of Trustees (CBT). The CBT administers the Act. The rate thus, announced stands good for the entire year on which it has been announced.

The year in which the new interest rates are announced stays valid for the next financial year i.e. from the year starting on 1st April of one year to year ending on 31st March of the next year. Let’s understand this with the help of an example: The current rate of interest i.e. 8.75% is valid and will be applicable only on EPF deposits made between the financial years of April 2014 to March 2015.

The interest even though calculated on a month on month basis, is transferred to the Employee’s Provident Fund account only on a yearly basis. The interest is transferred at the end of the financial year i.e. on 31st March of the applicable financial year. The transferred interest is summed up with the next month i.e. April’s balance and is then again used for calculation of the interest.

Interest is not transferred to an inoperative or a dormant Employee Provident Fund Account. Interest will not be paid to the employee in case of withdrawals i.e. on the amount that the employee has already withdrawn.

For any kind of contribution made towards the Employee Pension Scheme by the employer, the employee shall not receive any kind of interest.

Calculation of Interest Rate on EPF

The interest rate to be given is announced on a yearly basis, whereas, the interest is calculated on a month on month basis. The interest rate to be given per month is decided upon by dividing the per annum rate by 12. This is done in order to arrive at the amount of interest to be given to the employee for a particular month. For eg: If the interest rate per annum is set at 12% then the rate of interest for any particular month in the given year will be calculated as 12/12= 1% per month.

Let us understand this better with the help of an illustration: Let’s suppose that an employee started his contributions from the month of November 2014. Then the applicable rate of interest for him will stand 8.75% which is the current interest rate.

In this case, the rate of interest per month will be 8.75/12=0.73%.

As we know that the employee’s contribution is an important component of the EPF. Hence, let’s assume that he/she directs 12% of Rs.15000 which is equivalent to Rs.1800 per month towards his EPF account. This amount is transferred to the employee’s EPF account at the end of every working month and is reflected as a component of the total salary.

In this case, the first contribution made by the employee in the month of November will be able to earn interest only after completion of the above said month i.e. the amount deposited in the month of November will earn interest only in December.

Now the employer also has to make certain contributions towards this fund. Hence he/she will make a contribution of Rs.1800 which is equivalent to the contribution made by the employee.  Since, only 3.67% of the employer’s contribution is made towards EPF account and the rest 8.33% of the contribution is made towards the employee’s EPS account, the employer’s contribution to the employee’s account stands at 3.67% of Rs.15000 which is equal to Rs.550.

Hence, the monthly contributions made by the employer and the employee towards this accounts amounts to Rs 1800+ RS.550, which is equal to Rs.2350.

Hence, the balance at the end of November’2014 stands at Rs.2350. However, this balance will attract no interest.
 
1. The balance calculation for the month of Dec will be done in the given manner:
 
  • Balance carried forward from Nov 2014=Rs.2350.
  • Balance at the end of December = Rs.2350+Rs.2350= Rs.4700
  • Interest for the month of December 2014= Rs.4700*0.73%= Rs.34.31 Feb. 2015
     
2. The balance calculation for the month of Jan will be done in the below mentioned manner:
 
  • Balance carried forward from December 2014=Rs.4700
  • Balance at the end of January= Rs.4700+Rs.2350= Rs.7050
  • Interest for the month of January 2015= Rs 7050*0.73%= Rs.51.46
     
3. The balance calculation for the month of Feb will be done in the below mentioned manner:
 
  • Balance carried forward from January 2015=Rs.7050
  • Balance at the end of February= Rs.7050+Rs.2350= Rs.9400
  • Interest for the month of February 2015= Rs 9400*0.73%= Rs.68.62
     
4. The balance calculation for the month of March will be done in the below mentioned manner:
 
  • Balance carried forward from February 2015=Rs.9400
  • Balance at the end of March= Rs.9400+Rs.2350= Rs.Rs.11750
  • Interest for the month of March2015= Rs 11750*0.73%= Rs.85.76
     
At the end of the Financial year ending 2015 the amount of interest transferred to the employee’s EPF will stand at: Rs. 34.31+ Rs.51.46+ Rs.68.62 +Rs.85.76= Rs.240.15

This amount will be to the balance of the starting month of the next financial year i.e. April 2015.

Now let’s assume that the employee’s contribution per month and the new interest rate for the next financial yeari.e.2015-2016 remains the same at 8.75%, then

1. The balance calculation for the month of April will be done in the given manner
 
  • Balance carried forward from March 2015=Rs.11750
  • Balance at the end of April= Rs.11750+Rs.2350= Rs.Rs.14100
  • Interest for the month of April 2015= Rs 14100*0.73%= Rs.102.93
     
2. The balance calculation for the month of May will be done in the given manner
 
  • Balance carried forward from April 2015=Rs.11750
  • Balance at the end of May= Rs.14100+Rs.2350= Rs.16450
  • Interest for the month of May 2015= Rs 16450*0.73%= Rs.120.85
     
And the same continues for every month till the completion of the financial year 2016.

EPF Forms

An EPF form is mandatory for any kind of activity the employee wishes to undertake in his account; the activities include registration, withdrawals, availing of loans from an existing EPF accounts r filing returns or for any other reason. The type of form to be filled depends upon the kind of activity the employee wishes to undertake. The form has to be duly filled and submitted along with valid and proper documentation. The employee must be eligible to make a claim. This eligibility is subject to satisfaction of a predetermined criterion.

Mentioned below are the various types of forms available:

Forms for EPF Claims:
 

  1. Form 31: Can be used by individuals who wish to withdraw funds for the purpose of funding education, wedding, and loans for housing, repairs, any kind of construction or renovation.
     
  2. Form 14: Used for the purpose of buying an LIC policy.
     
  3. Form 10D: Used for the purpose of settling pension funds via pension on a month on month basis.. This can be done only post completion of 58 years of service and a minimum of 10 completed years of service.
     
  4. Form 10C: Used for the purpose of settling pension funds via withdrawals. This can be done only post completion of 58 years of service and without a minimum of 10 completed years of service.
     
  5. Form 13: Used for the purpose of transfer of EPF account
     
  6. Form 19: Used for the purpose of Final Employee Provident Fund Settlement.
     
  7. Form 20
     
  8. Form 51F
     
  9. Registration forms and
     
  10. Return forms

A detailed description of the above mentioned forms is given below:

Form 31: For the Purpose of Withdrawals and Advances

Even though, withdrawals are not allowed from EPF accounts, as the sole purpose of EPF accounts is long term investment,  the act provides for certain relief from the law under which the individual may borrow or make withdrawals from their EPF account.  The details are mentioned below:
 

  • Purchase of a land or a plot or building a house for residential purpose:
     
  • Renovation or repairing of a existing house which includes making certain additions or removing parts of the house
     
  • Repaying any kinds of loan taken towards purchase of home.
     
  • Making payments for expenses towards medical treatments
     
  • Funding a wedding
     
  • Funding Education
     
  • In order to make withdrawals before retirement or in case of closure or lockout of the employee’s organization.
     
  • Power cuts
     
  • Unnatural conditions
     
  • Physically handicapped Employees

The important points to be kept in mind while filling up the form are:
 

  • The form should be filled in block letters only.
     
  • Any kind of overwriting in the form has to be avoided. The form has to be filled legibly and neatly.
     
  • The ‘Member’s Account Number’ along with relevant details about the members region, number, office, extension code and the given account number should be filled clearly in the specified column. Under the tab ‘Establishment Search’ available at the EPFO website, one can find the latest code that is relevant to the member.
     
  • In case, the member wishes to receive updates via SMS and also wants to keep a track on his/her claim status, then he/she must provide correct mobile number at the space provided on the top of the form.
     
  • The Postal address along with the correct pin code has to be mentioned in the form.
     

Payment receiving Process for claims made via form 31:
 

  • For claims which have been honored by the EPFO, the amount of the claim will be transferred directly to the bank account number of the member or the agency.
     
  • In case, the member wishes to receive payments by ways of electronic transfer, then he/she must provide a cheque which has been cancelled by the account holder from his/her account along with Form 31. The cheque should contain relevant details pertaining to the member’s bank account number and IFS code in order to ensure Hassle fee and fast money transfer.
     
  • In case of claims amounting to less than Rs.2000, the member can opt for receiving payments via money order.
     
  • In case of payments being made to an agency, complete name as well as the address of the agency must be mentioned clearly in the form.
     

Form 14: Used for the purpose of purchasing an LIC policy by using funds from the employee’s EPF account

  • This facility can be availed by any employee who has a minimum work experience of minimum 2 years and is in a position to declare sufficient account balance needed to make payments for a minimum of 2 years and also has an yearly contribution which may suffice for the payment of the first and all the premiums of the purchased policy.
     
  • The member has to furnish all the information of the policy being purchased. The amount of the accrued premium will be directly credited to LIC depending upon the schedule of the premium.
     
  • This form may also be used to make withdrawals in order to pay any accrued interest or payment of late fees.
     
  • The withdrawals may be made only from the employee’s share of contribution in his/her EPF account.
     
  • The facility can be availed only by an employee who provides all the relevant details pertaining to the LIC policy being purchased along with the address of the LIC branch office, the date of issue of the policy and the number of the policy of purchase of the policy or the proposed policy number and the proposed date of the policy, the premium amount along with the scheduled of payments of the premium, the nominee names. The employee must ensure that the policy being purchased is not encumbered.
     
  • The member must duly fill, sign and submit the form in order to make use of this facility.
     

Form 10D: Used for withdrawal of the monthly pension available under the Employee Pension Scheme (EPS)

  • With the help of this form employees who have crossed 58 years of age with a minimum work experience of ten years of completed service can apply for the settlement of their pension fund. The various types of pension that can be applied for with the help of this form are:
     
  • Reduced Pension
  • Superannuation Pension
  • Widow and Children Pension
  • Disablement Pension
  • Nominee Pension
  • Orphan Pension
  • Dependent Parent

Form 10 C: Used as a medium of application for receiving a withdrawal certificate under Employee Pension Scheme (EPS)

  • This form can be used by employees who are above the age of 58 years but do not have ten years of completed service, which is one of the basic criterion for making claims under this scheme. Owing to various conditions such as turning 58 years before the completion of 10 years or because of discontinuation of his/her job before completion of the required 10 years’ service, the employee may fail to fulfill this criterion.  
     
  • This can be claimed by individuals who are below the age of 50 years but have succeeded in completing a minimum of 10 years in their job before discontinuation of the same.
     
  • This can be claimed by individuals who are between the ages of 50 to 58 years but have succeeded in completing a minimum of 10 years in their job before discontinuation of the same and do not wish to go for a reduced pension.
     
  • This claim can be made by the employee’s legal heir be it a nominee to the account or his/her family member in case of death of the employee. However, the employee must be more than 58 years of age. It is not mandatory for the employee to have completed ten years of service.
     
  • The claim can also be made by members who have joined the scheme for a minimum period of 180 days exclusive of the period where contributions are not taken.  The applicant must duly fill and sign the form along with valid and legal documentation. The documents to be given are:
  • Copy of a cheque which has been cancelled by the account holder
     
  • Children’s Birth Certificate (to get the scheme certificate)
     
  • Death certificate (in case of deceased employee)
     
  • Succession certificate (to be produced by the legal heir or the nominee to the account)
     
  • One rupee stamp (in order to avail withdrawal benefit)
     

Form 13 : used for the purpose of transferring an existing EPF account

  • Form 13 is also known as the transfer claim form which can be used by the employee or the member to transfer his/her old account to another EPF account. The description of the employee is forwarded to the EPFO, whereas, the accumulated contribution is transferred to a trust. The Pension contributions made by the employer in this case is not transferred to the trust. However, if the new organization is exempted from the pension scheme, then both the PF fund as well as the pension amount is transferred to the trust.
     
  • For organizations which are free from the pension scheme under the Act, Provident Fund accounts held with the trust, whereas, for those organizations which are not free from the scheme, PF funds are held with the provident fund establishment.

Form 13 (revised) : It comprises of 3 parts vis-à-vis Part A, Part B and Part C

1. Part A consists of the personal information of the employee/member.


2. Part B consists of the description of the existing account of the employee/member.


The name of the Office or the trust holding EPF also has to be mentioned clearly. Along with the above mentioned details, correct joining as well as leaving dates of the current job and the complete name as well as address of both the new and old organization has to be given by the employee.
 

3. Part C consists of the Description of the new account of the employee/member


The form to be given by the employee has to be duly signed or attested by the old employer or the new employer.

If the form has been attested by the employee’s old employer then the form must be submitted to the office or the trust holding the old account, and if the form has been attested by the employee’s new employer then the form must be submitted to the office or the trust holding the new account. It means that depending upon the employer whether new or old, whoever signs or attests the form, the form has to be given at the respective office where the account has been held.

Online and offline Transfer of EPF Account:

The need of a transfer arises whenever the employee makes a shift in his current job to another one. The funds so contributed by him towards his PF during his work tenure with the old organization have to be effectively shifted or withdrawn. The EPF balances along with the amount of interest to be received on the accumulated fund has to be either shifted to the new organization or the amount has to be withdrawn in order to ensure final settlement. It is at this time that the requirement of transferring funds arises. The shifting of funds may be done either online and offline. Online transfers are generally more preferred over offline transactions. Transfers made online are easy, fast and way more convenient. It also allows the employee to keep a track of his claim status and get regular updates on the same.

Offline Transfer of EPF Funds:

In order to transfer his/her accumulated funds form one Establishment to other, the employee has to
 

  • Submit the duly filled form to his former or later employer. This form can be signed/ attested by either of the employers.
     
  • Post that, the attested form will have to be given at the relevant office depending upon the attestation made by the respective employers. The accumulated fund in the existing PF account will then be forwarded to a trust.
     
  • An Annexure K which clearly shows the employee’s work tenure in the office along with his/her pension fund account balances will then have to be given by the old employer to the Regional EPF office or to the Regional Provident Fund Commissioner (RPFC).
     
  • The trust once having received and completed the verification process will then transfer the accumulated fund from the employee’s old account to the new one. The amount will be directly transferred to the employee’s new account.
     
  • In case of absence of Annexure K, the trust fails to transfer the money to the employee’s account. Owing to a huge number of transactions being made daily, it becomes almost impossible to track the claim status leading to stalling of the transfer. In order to avoid this inconvenience, Annexure K as well as claim form has been digitized.
     

 Online Transfer of EPF Funds:

In order to transfer the EPF fund online, the employee has to visit the official website of the EPFO registered as www.epfindia.gov.in
 

  • The employee has to ensure that the digital signatures of both the previous as well as the current employer are registered with the provident fund establishment. If this is not done, then the employee will have to follow offline transfer method.
     
  • The employee then has to click the “Online Transfer Claim Portal’ tab available on EPFO’s website.
     
  • Post that, the employee will have to select the option to check eligibility in order to file an online claim for shifting the account.
     
  • Details pertaining to the former and later EPF accounts have to be provided by the employee in order to check eligibility for OCTP.
     
  • The employee then has to log in with the member id if already registered with the portal. In case, the employee is not registered, then he/she will have to register to get log in details.
     
  • After logging in on the website, the type of document along with the account number and contact number will have to be filled. On doing this, the employee gets access to the Claim Application.

Transfer account request under the ‘Claim’ tab in the main page.

It comprises of 3 parts vis-à-vis Part A, Part B and Part C
 

  1. Part A consists of the personal information of the employee/member such as the name, contact number, mail id, bank account number and the IFS code required for the transfer.
     
  2. Part B consists of the description of the existing account of the employee/member such as the old PF number along with description of the old EPF office will have to be given by the employee. . The description of the old organization’s name, address, date of joining and quitting of job, father’s name etc. has to be furnished.
     
  3. Part C consists of the Description of the new account of the employee/member. The details to be provided here pertain to the description of the new organization of the employee.
  • The employee will then have to get the form signed or attested by either the new employer or the old one.
  • Before submission of the form, the employee has to make sure that the details provided on the form are correct and do the required changes, if any.
  • The employee then has to click accept button to accept the declaration and get the pin. The pin then received on the employee’s phone has to be then entered on the page. Only on entering the Pin, the claim form for shifting the PF account is deemed to have been submitted.
  • After submission of the form, the employee will have to take a printout of the form, sign and get it attested or signed by either of the employer. The employer then has to verify the form through the website. Post verification of the form, the trust will transfer the accumulated fund to the new account.
  • The website also offers a grievance system through which issues or complaints can be filed.

For employees wishing to opt for online transfers he/she will have to check his/her eligibility by giving details of both the new as well as the old Pension Fund account. The claim status can also be tracked in case of online transfers. This facility is available at the EPFO portal.

Form 19: Used for Settling the EPF Account

Settlement of PF can be claimed for by employees who choose to retire from work. It means, they have quit one job and are not willing to join any other organization. However, for employees who wish to quit one job and join other should always apply for shifting accounts with the help of Form 13. Withdrawal and settlement of the PF a/c when still working is ideally not allowed under the PF guidelines.

Various reasons for quitting the job which may lead to requirement of withdrawal of funds are given below:
 

  • Retirement from Job
  • Employees having reached the set age limit of 55 years.
  •  Employees wishing to opt for Voluntary Retirement Scheme (VRS).
  • Any kind of physical or mental disability leading to a compulsory retirement from job on a permanent basis.
  • In case of resignation, where employed with an organization not registered with the EPF scheme.
  • Retrenchment
  • Migration to a different country for the purpose of employment or any other.

A wait period of two months in order to withdraw or permanently settle his account has to be given by the employee who has been discharged from his services or has quit .The EPF account remains active for a period of 3 years after resignation. The interest is transferred to the account even 3 years after the deposits are no longer being made either by the employer or by the employee. However, post completion of 3 years, the account is deemed to be inactive. The employee must withdraw and make settling the EPF account is account with the help of form 19 if he/she has failed to search for a new job.

Submission of Form 10C or Form 10D has to be done along with Form 19 whenever the employee wishes to withdraw his/her Pension fund or Scheme certificate and EPF withdrawal and Settlement.

Form 10 C has to submitted along with Form 19 where,

The member is below the age of 50 years:
 

  • Wishes to receive pension scheme certificate and has minimum experience of 10 completed years of service.
  • Wishes to receive pension scheme certificate or withdrawal benefit but does not have minimum experience of 10 completed years of service.

The member is between the ages of 50-58 Years.
 

  • Wishes to receive pension scheme certificate and has minimum experience of 10 completed years of service.
  • Wishes to receive pension scheme certificate or withdrawal benefit but does not have minimum experience of 10 completed years of service.

The member is above the age of 58 years:
 

  • Members over 58 years of age
  • Wishes to receive pension scheme certificate or withdrawal benefit but does not have minimum experience of 10 completed years of service.

Form 10 D has to submitted along with Form 19 where,
 

  • Wishes to withdraw pension and has minimum experience of 10 completed years of service.

Form 20: Used for the purpose of settling the EPF account in case of death of the employee or the member

In case of death of the employee/member, the legal heir or nominee of the account will have to submit Form 20 along with the requisite documents in order to claim for settling the EPF account of the deceased employee’s pension fund as well as insurance. The type of form to be given varies depending upon the age at which the death of employee occurs.

Under case, where the employee dies while working then:
 

a. For death before or at the age of 58 years:
 

Form 20 along with Form 10D for claiming pension amount and Form 51F for claiming insurance amount has to be submitted.
 

b. For death post the age of 58 years:
 

In case of employees with ten years of completed service: Form 20 along with Form 10D for claiming pension amount and Form 51 for claiming insurance amount has to be submitted.

In case of employees with less than ten years of completed service: Form 20 along with Form 10Cfor claiming pension amount and Form 51F for claiming insurance amount has to be submitted.

Under case, where the employee is not working then, insurance claim through Form 51F will not be entertained.

Checking EPF Balance

The employee/member may choose to check his/her fund balance online by clicking on the ‘Know your EPF Balance’ tab EPF available at the EPFO website. The member has to select the given link and fill in the relevant details such as the PF account Number, name and the contact number of the member. The description of the balance will be forwarded to the provided mobile number.

Lodging EPF Grievances:

The EPFO also provides for a grievance system which enables the member to register their complaints.

The members may lodge their complaint by clicking on The ‘Register Grievance’ Tab available on the web portal at EPFiGMS.gov.in. In the form available there, the members will have to fill in all the relevant details pertaining to their account along with the description of the grievance that they have been facing.

Relevant files related to the grievance being faced can be uploaded on the site.
The member may also track the status of their grievance by clicking on the ‘View Status’ tab available on the main page.

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