EPF E-PASSBOOK FACILITY AND THEIR BENEFITS
What is Employees Provident Fund?
The Employees’ Provident Fund (EPF) is a scheme governed by the Employees’ Provident Fund Organization. EPF basically aims to provide social security and offers retirement benefits.
Basics of Employees’ Provident Fund (EPF)-
EPF comprises of the following three different schemes-
1. EPF Scheme, 1952 (EPF)- This is an ‘Employees’ Provident Fund Scheme’ which is a retirement benefit scheme.
2. Pension Scheme, 1995 (EPS)- This is an ‘Employee Pension Scheme’ which aims to generate a pension after a specific age.
3. Insurance Scheme, 1976 (EDLI)- This is an ‘Employee Deposit Linked Insurance Scheme’ which deals with life insurance coverage.
Who is the Eligibility criteria for Employee Provident Fund (EPF)?
The eligibility criteria for joining the EPF scheme are-
1. An organization having 20 or more workers/ employees are mandatorily required to register for EPF Scheme and give EPF benefit to the employees.
2. However, an organization with less than 20 workers/ employees can voluntarily obtain EPF registration.
3. A salaried employee earning less than INR 15,000 is also mandatorily required to obtain EPF registration.
EPF Contribution and its distribution thereof-
The employer’s contribution is 12% of the basic salary, dearness allowance, and retaining allowance. Accordingly, an equal contribution (i.e., 12%) is paid by the employee.
However, the EPF contribution rate will be 10% for both employees and employers for the following organizations-
- An organization employing less than 20 employees; or
- Organization incurring loss more than or equal to its net worth; or
- The organization that is declared sick by the Board for Industrial and Financial Reconstruction; or
- Guar, coir, gum, beedi, brick and jute industries; or
- Organization working under the wage limit of INR 6,500.
Notably, a total contribution made by the employer will be distributed in the following manner-
1. 33% towards Employees’ Pension Scheme (EPS); and
2. 67% toward EPF.
Following additional contribution and administration cost is to be incurred by the employer, other than above 12%/ 10% contribution-
- 50% towards Employee Deposit Linked Insurance Scheme (EDLI),
- 10% towards the administration cost of EDLI, and
- 01% toward the administration cost of EPF.
EPF registration procedure for employer- For obtaining EPF registration, an employer needs to follow the below simple steps-
STEP 1 – Login to the website.
STEP 2 – Click the ‘Establishment Registration’ icon available on the homepage,
STEP 3 – Shram Suvidha login page will appear. Click ‘Sign Up’ if the User id and Password are not available or if available provide the same.
STEP 4 – Navigate the path Registration > Registration Under EPF-ESI,
STEP 5 – Fill up the details accurately and submit the application form.
Employee Provident Fund Organization (EPFO)-
EPFO is a statutory body formed by the Government of India. EPFO manages and operates all three schemes i.e., EPF; EPS, and EDLI.
The sample list of services offered by EPFO is-
1. Online registration,
2. Pay for EPF subscription online,
3. Generate the EPF challan online,
4. Transfer claims online,
5. Address your grievances etc.
The EPFO e-passbook facility displays your total account balance month-wise and for the financial year. You can also see the break-up of employer and employee share as well as the portion that is directed to EPS (employees’ pension scheme). Interest credited for the financial year is also reflected in the statement.
BENEFITS OF EPF E-PASSBOOK FACILITY:
EPF passbook is a document that contains all contributions made by the employee as well as the employer in EPF and EPS accounts.
- All contributions made each month are mentioned in the EPF passbook.
- The passbook contains any interest that has been deposited in the beneficiary’s account.
- This facility is to view the Member Passbook for the members registered on the Unified Member Portal.
- Passbook will be available after 6 Hours of registration at Unified Member Portal.
- Changes in the credentials at Unified Member Portal will be effective at this Portal after 6 Hours.
- Passbook will have the entries which have been reconciled at the EPFO field offices.
- Passbook facility not be available for the Exempted Establishments Members / Settled Members / InOperative Members.
- This portal can be use to raise a claim for a partial withdrawal to meet expenses such as house purchase, treatment of critical illness, higher education and so on.
- The portal also allow to check claim and request for transfer status.