In an EPF, both employee and the employer make a contribution to employee account. Its purpose is to provide the employee with lump sum payment at the time of retirement from service. The Employees’ Provident Fund Organisation (EPFO) has allowed employees make partial withdrawal of money from their EPF accounts in return for no payments and the money can be used as a personal loan.
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EPF is deducted from the basic salary + dearness allowance of an individual from the moment he joins an organisation or company. EPF contribution includes deposits made by both the employee and the employer. The employee and the employer start contributing 12% of basic salary into the EPF account. The complete 12% of contribution goes into the EPF account along with 3.67% (out of 12%) from the employer. The remaining 8.33% comes from the employer and is diverted to your Employee’s Pension Scheme. (EPS).
The current EPFO interest rate is 8.55% for the financial year 2017-18. The EPFO interest rate has shown a steady decline from the previous year’s rate which was 8.65%.
The EPFO contributions are associated with some tax benefits as well. The contributions made by the employer are completely tax free. The employee is also eligible for income tax deduction up to Rs 1.5 Lakh a year under section 80C of the Income Tax Act.
Linking Aadhaar with the EPF pension scheme helps in the verification process of the account holder and is mandatory by EPFO. To link your Aadhaar card details with your EPF pension scheme follow the steps given below:
Employees can also get their EPF account linked with Aadhaar through the offline method by visiting the nearest EPFO office and submitting the duly filled application form along with the supporting documents.
SEE ALSO: How To Transfer PF Online?
The employees’ provident fund is a retirement corpus built from the monthly contributions made by the employer and employee. Therefore, the employee must provide a genuine reason for withdrawing funds from EPF:
The EPFO has introduced a dedicated customer care service to address the queries on EPF like EPF claim, withdrawal or delay in EPF payment and so on. Follow the steps given below to contact the customer care service of EPF:
The EPFO has launched the concept of digital signature for members to make the process of transfer claims easier. Previously an employee had to fill Form 13 and get it attested by the earlier employer for raising a transfer claim and submit the form to the regional EPF office. The digital signature helps the employee avoid hassles of going through an elaborate process. This process has benefitted both employer and employee. Employers can approve claims easily with the help of digital signature and the employee can get his claim attested digitally in case of change of job.
The EPFO has launched an online portal where the members can easily verify their contributions and check the total balance in the EPF account from the convenience of home. Below mentioned are the steps to check EPF balance:
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