KNOW ABOUT...

EMPLO
YEES PRO
VIDENT FUND
EMPLOYEES
PROVIDENT
(EPF)

Rajiv Education & Employment Mission in Andhra Pradesh (REEMAP)

Department of P.R & Rural Development, Govt. of A.P.
Office: 4th Floor, North Block, HMWS & SB Building,
Khairatabad, Hyderabad - 500 004,
Ph. No. : 040-23322073/74, http://ryk.cgg.gov.in

Know About
Employees Provident Fund (EPF)

November, 2012

Mission Director
REEMAP

Rajiv Education & Employment Mission in Andhra Pradesh (REEMAP)

Department of P.R & Rural Development, Govt. of A.P.
Office: 4th Floor, North Block, HMWS & SB Building,
Khairatabad, Hyderabad - 500 004,
Ph. No. : 040-23322073/74, http://ryk.cgg.gov.in

FOREWORD
The Employees Provident Fund & Miscellaneous Provisions
Act,1952 is an important piece of Labour Welfare legislation
enacted by the Parliament to provide social security benefits
to the workers. The Employees Provident Fund Organisation
(EPFO) is a statutory body of the Indian Government under
Labour and Employment Ministry. It administers a compulsory
Contributory Provident Fund, Pension and an Insurance
Scheme for Indian Workforce.
An individual employee account is being maintained at EPFO
with contributions both from the employee and the employer.
The compound interest received on the investment of funds of
individual members, systematically build over time, are
credited to individual members account. About 620 lakh
workers from 6.7 lakh establishments enrolled under EPFO at
present.
The intention of publishing this booklet is not only to create
awareness among the functionaries of corporation and private
sector employees but also to find solutions to the day-to-day
problems that may arise.
I am ver y happy that REEMAP is attempting to create
awareness and disseminate relevant information about
Provident Fund to all the RYK youth through this publication.
I congratulate the REEMAP team for this extremely useful
attempt.

December, 2012
Hyderabad

Prof K.C.Reddy
Chairman, REEMAP

A word about this book...

Employees Provident Fund and Miscellaneous Provisions Act 1952
(PF Act) is one of the important Social Security Act, intended to
provide post-retirement benefits for the employees working in
companies, corporations and other establishments. The schemes
made there under namely, Employees Provident Fund Scheme (EPF)
and the Employees Pension Scheme (EPS) provide attractive returns
on their saving investments, apart from pension benefits. Employees
Provident Fund Organisation (EPFO), a statutory body established
by the government of India, administers the EPF& EPS schemes in
the country.
The EPF principal amount and interest earned on it belongs to the
EPF account holders only. It is found that about Rs.22,600 cr is
lying unclaimed with EPFO due to lack of knowledge among
employees on procedures of EPF account operation. In this context,
an effort is made through this small booklet to explain the critical
elements of EPF which include eligibility to become an EPF member,
process of getting benefits from EPF& EPS etc.
I hope that RYK beneficiaries are benefitted from this Handbook
on EPF. It will help in clarifying their doubts, operate their account
in a better way and enabling them to claim their EPF amounts fully

A.SanthiKumari
A.SanthiKumari, IAS
Mission Director, REEMAP
December, 2012, Hyderabad
Employees Provident Fund (EPF)

1
1

EPF M
eans...
Means...

What is EPF?

EPF stands for Employees

Provident Fund.
It is a scheme introduced by
Government of India to help
employees from private and nonpensionable public sector
organisations and State and
Central Government Undertakings to save a part of their
salary every month in a saving
scheme.

How does EPF work? A small part of an employees

salary (12% of basic + DA) and
an equal amount is matched by
employer is invested in EPF each
month.
EPF contributions and accounts
are managed by Employers
Provident Fund Organization
Example
(EPFO)
Basic salary : Rs 4000
Interest amount on EPF
D.A : Rs 1800
contributions gets compounded
Total Salary : Rs 5800
on monthly basis.
Towards EPF
Contributions by the employer &
Contribution of employee : Rs.696
Contribution of Employer : Rs 696
employee
are
not
a
Total EPF savings per month : Rs 1392
taxable income.
Employees Provident Fund (EPF)

EPFO is a statutory body of GoI

under Labour Employment
Ministry. It is one of the largest
social security organisations in
the world in terms of members
and volume of financial
transitions undertaken.

Wh
PFO ?
Whaat is E
EP

3.67% share

12% share

There are two elements in Provident

What are the
elements of Provident Fund
1. EPF is your Provident Fund.
Fund?
2. EPS (Employees Pension
Scheme) is your pension.
Employees
Employers
Contribution
Contribution

The 12% contribution from

your side goes to EPF.
re
sha 1 )
%
4
3
5

Out of 12% ofemployers

8.3 . R s .
ax
(m
contribution, 8.33% goes in
EPF
EPS
EPS (subject to maximum
of Rs.541) and the rest goes
Lumpsum payment
Pension payment
- Compound interest
- No interest
into EPF.

Apart from monthly compounded

What are the benefits
interest and loan on EPF, one can
fr
om E
PF & E
PS ?
fro
EP
EP
avail pension facility, if he/ she has:
Attained the age of 50 years or
more and
Completed a total service of 10
years or more and
Not getting any other EPF Pension
2 Employees Provident Fund (EPF)

2
6

Being P
ar
Par
artt of EPF

Am I eligible for EPF Anybody who works in an

establishment covered under EPF
b enefit
nefit??
and MP Act, 1952 is eligible for
EPF benefit.
Except apprentice and casual
labourer, the employees drawing
basic salary up to Rs.6500
compulsorily contribute to PF.
Employees drawing above
Rs.6501 have an option to
become member of the Provident
Fund.
Are the persons
employed through a
contractor covered
under the
che
me
E P FS
FSche
cheme
me??

Yes. Persons employed through a

contractor are included in the
definition of employee under
the Employees Provident Fund
Act, 1952 and as such, they are
covered under the EPFScheme.

Which form has to be

filled by me while
becoming member of
provident fund?

Nomination Form No 2 has to be

filled to become a member of the
Provident Fund.
This form will be available at EPF
office. (See annexure-1 for model
format)

Employees Provident Fund (EPF)

10

How would I know the PF office sends an annual account

statement of every employee to
amount of deposits in
the concerned employer.
my P
F ac
nt ?
PF
accc ou
oun
This Account statement contains
details like opening balance,
amount contributed withdrawals,
interest earned and closing
balance for that particular year.
Get the copy of EFP annual
account statement from your
employer and verify the above
particulars.
Verify the above updated
particulars at EFPO or in the
website www.epfo.nic.in

How to check my
nt ?
E P F ac
accc ou
oun

Remember your EPF account

number and get the details at
http://epfoservices.in/epfo/
m e m b e r _ b a l a n c e /
member_balance_office_select.php.
Can check online yourself from
your registered mobile number.
Can also check with your
employer or contact EPFO
regional office located at .

4 Employees Provident Fund (EPF)

Bhavishyanidhi Bhawan,
No. 3-4-763, Barkatpura Chaman,
Hyderabad500 027(AP).
E-mail: ro.hyderabad@epfindia.gov.in
Website: www.epfo.nic.in

11

12

Is tth
h is rraate of iin
nteres
estt
on EPF always 8.25%?

What if I want to
contribute a higher
portion of my wages
to E
P F, si
nc
EP
sinc
ncee it is so
iv
a t tr act
activ
ivee ?

The rate of interest earned on a

PF account is being fixed every
year on 1st April by the Central
Government which is usually
higher than other saving bank
account interest rates.

If desirous of enhancing rate of

contribution, inform your
willingness to Employees
Provident Fund Organisation
through your employer.

Employees Provident Fund (EPF)

3
13

14

15

Dealing with
EPF when JJob
ob is changed

What happens to my While joining a new establishment,

furnish details of previous
account when I
Provident Fund account number
change my job, also
and scheme certificate
how do I ensure I
d
do
nt lose m
ued
don
myy ac
acccr ue
Your new employer should
i n t e r es
estt ?
furnish Form-5 with details of
previous Provident Fund a/c no.
to EPFO
The details of updation should be
verified either at EPFO or at
www.epfo.nic.in

If my new employer
urn ish
do
es
nt ffu
esn
does
Form-5, what I have
to do?

Which form has to be

filled while
transferring provident
f und de
p osit
dep
osit??

Ask the present employer to open

a new PF / Pension accpont and
apply for transfer of amount from
previous PF account to the present
PF account number.

You have to fill form No 13 to

transfer your PF amount.

6 Employees Provident Fund (EPF)

4
16

17

EPF Withdrawals

How can I get the

EPF money if I left
the job after few years
of eem
mp lo
nt ?
loyyme
men

If you left the job after few years

of employment, you may close the
EPF account and get the entire
EPFamount but not the EPS
amount.
An EPF account can be closed by
duly filling Form
No. 19
indicating your bank account
details get it proper stamped
attestation of the employer. It
should be submitted at the
Provident Fund Office, where
your account is being managed.
(Pl see annexure-3 for Form No
19).
The PF account closure form can
directly submitted by you after
getting attested by a notary a
gazetted officer or a magistrate.
The concerned PF office will take
one month time to send the PF
amount with interest directly to
your bank account or a through
a cheque.
You can open a new EPF account
whenever
you
join
the
employment again.

The money saved in your EPF

When can I withdraw
account can be withdrawn:
money from EPF
In an event of any emergency,
ac
nt ?
accc ou
oun
you can apply to EPFO and
partially withdraw from your
EPF source.
Employees Provident Fund (EPF)

When the employee is

temporarily or no longer fit to
work on account of some
disability
Retirement
Closure of EPF account
For more details see:
http://epfservices.in

18

Is it ad
le fo
o No. The EPF is a perfect scheme
advvisab
isable
forr me tto
to build a substantial retirement
withdraw money from
corpus. It works on the basic
E P F pprrematurely
ely??
principal of compounding,
giving a high effective net yield
on your investment.

19

You can easily avail EPF

If premature withloan on easy terms.
drawal is unadvisable,
Most companies
what should I do in an
offer you a loan
e me
rg
merg
rgeenc
ncyy ?
against EPF as
a security at
reasonable
rates of interest.

20

When can an
employee start
re c eiv
n?
eiviing a P
Peensio
sion?

An employee can start receiving

the pension under EPS only after
rendering a minimum service of
10 years and attaining the age of
50/58 years.
In case of death / disablement,
these conditions dont apply and
they
can
get
pension
immediately.

8 Employees Provident Fund (EPF)

5
21

22

Important Additional
Information

What are the major

precautions to be
taken by me to keep
E P F ac
nt safe
accc ou
oun
safe??

What are the

precaustions I should
take to ensure my
E P F is safe
safe??

Enrolment to Employees
Provident Fund / Employees
Pension Scheme immediately
on joining an establishment.
Furnish correct details to EPFO.
Provident Fund is deducted at
statutory rate from the total
wages i.e. basic, D.A. and
retaining allowance if any.
Checkup periodically with the
employer that contribution and
other charges are paid to EPFO
and verify the Form-3A
(contribution card) maintained
by the employer.
Check your EPF account
periodically for monthly
deposits and balances through
online.
Dont give false declaration and
incorrect particulars either to
employer or to EPFO.
Dont
fall
victim
to
middleman/ agents.

Employees Provident Fund (EPF)

 Dont allow Employer to deduct

his own share of contribution or
administrative charges payable
by him from your wages.
Dont be a party to
misclassification of allowances
of your wages, with a view to
avoid payment of Provident
Fund.
For clarification of your doubts
you may directly contact the
PRO at EFPO.

23

24

Which establishments
are covered by the
EPF& MP Act, 1952?

Is it M
n
Maand
ndaator y fo
forr aan
establishment with
more than 20
employees to provide
E P F bbeenefit
nefit??

Any establishment which

employs 20 or more employees
will be covered by Employment
Provident Fund Organization
(EPFO).

Yes. If the establishment in

which you work for is not
covered by EPFO, you can
approach EPFO to cover it.

10 Employees Provident Fund (EPF)

25

26

27

What if there are less

than 20 employees
and I want to be an
E P F me
mb
memb
mbeer ?

In aan
n aalr
lr
eady E
PF
lready
EP
registered
establishment, if the
number of employees
become less than 20,
ct aap
pp ly
wil
he A
illl tthe
Act
ly??

Is tthe
he A
ct aap
pp lic
ab
le
Act
icab
able
to an establishment /
fact
or y w
h ich is
acto
wh
closed down but is
employing a few
employees to look
af
he aass set
aftt er tthe
setss ?

If employer and employees of

an establishment desires, that
establishment can voluntarily
opt for EPF coverage even if the
employees employed therein is
less than 20.

Any establishment which has

been covered under theEPF&
MP Act once shall continue to
be governed by it, even if the
number of employees falls
below 20 at any point of time.

Where a factory is closed down

for good and only four security
men are retained for keeping a
watch over the assets and
properties of the establishment,
the Act would continue to be
applicable only to the present
employees of the factory.

wwwwww
Employees Provident Fund (EPF) 11

Annexure-I
(FORM 2 REVISED)
NOMINATION AND DECLARATION FORM FOR
UNEXEMPTED/EXEMPTED ESTABLISHMENTS
Declaration and Nomination Form under the Employees Provident
Funds and Employees Pension Schemes
(Paragraph 33 and 61 (1) of the Employees Provident Fund Scheme
1952 and Paragraph 18 of the Employees
Pension Scheme 1995)
1. Name (IN BLOCK LETTERS) : _________________________
Name Fathers / Husbands Name Surname
2. Date of Birth : ____________ 3. Account No. _____________
4. *Sex : Male/ Female: ______ 5. Marital Status ____________
6. Address Permanent / Temporary : ______________________
________________________________________________________________________________
PART A (EPF)
I hereby nominate the person(s)/cancel the nomination made by
me previously and nominate the person(s) mentioned below
to receive the amount standing to my credit in the Employees
Name of
the
Nominee
(s)

Nominees Date
relationship
of
Address
with the
Birth
member

Total amount or
share of
accumulations in
Provident Funds to
be paid to each
nominee

If the nominee is
minor name and
address of the
guardian who may
receive the amount
during the minority
of the nominee

Provident Fund, in the event of my death.

1 *Certified that I have no family as defined in para 2 (g) of the
Employees Provident Fund Scheme 1952 and should I acquire
a family hereafter the above nomination should be deemed as
cancelled.
2. * Certified that my father/mother is/are dependent upon me.
Strike out whichever
is not applicable
12 Employees Provident Fund (EPF)

Signature/or
thumb impression
of the subscriber

PART (EPS)
Para 18
I hereby furnish below particulars of the members of my family
who would be eligible to receive Widow/Children Pension in the
event of my premature death in service.
Sr.
No
(1)

Name & Address of the

Family Member
(2)

Age
(3)

Relationship with the

member
(4)

Certified that I have no family as defined in para 2 (vii) of the Employeess

Family Pension Scheme 1995 and should I acquire a family hereafter I
shall furnish Particulars there on in the above form.
I hereby nominate the following person for receiving the monthly widow
pension (admissible under para 16 2 (a) (i) & (ii) in the event of my death
without leaving any eligible family member for receiving pension.

Name and Address

of the nominee

Date of Birth

Date _______________

Relationship with
member

Signature or thumb impression

of the subscriber

CERTIFICATE BY EMPLOYER
Certified that the above declaration and nomination has been signed/
thumb impressed before me by Shri/ Smt./ Miss _________ employed in
my establishment after he/she has read the entries / the entries have
been read over to him/her by me and got confirmed by him/her.

Date: ___________

Signature of the employer or other

authorised officer of the establishment
Place :

Name & address of the Factory /

Establishment

Date :

Employees Provident Fund (EPF) 13

Annexure-II: Payslip
EPF contributions will be shown in the following manner

PAY BILL FOR THE MONTH OF OCTOBER, 2012

SB.A/C NO. 52188997592
SCALE OF PAY
DESIGN: AEO

RANGA RAO (16)

39540
EARNINGS
BAS PAYIC
P.P

DEDUCTIONS

14440.00
80.00

D.A (41.944%)

6057.00

H.R.A (30%)

4332.00

C.C.A
E.P.F

2460.00
840.00

Note:

E.P.F

LOANS & ADVANCES

200.00

MAC(P)

692.00

(23/80)

4920.00

350.00

CONVEYANCE
GROSS TOTAL

PROF.TAX

14860-

28559.00

TOTAL DEDUCTION

5120.00 NET SALARY

33439.00

1. In Employee earnings Rs.2460 deposited in EPF

account
2. Employer also added Rs.2460 and a total of
Rs.4920 deposited in your EPF account and
shown in deductions
In your monthly pay bill please check the
employee and employer contributions
towards EPF
You can check the monthly deposits in your
EPF account through (www.epfo.nic.in)
online.

14 Employees Provident Fund (EPF)

Annexure-III
EMPLOYEES PROVIDENT FUND SCHEME,1952
Form-19
Form to be used by a major member of the Employees Provident
Fund Scheme, 1952 for claiming the
Employees Provident Fund dues [Para 72](5)]
1. Name of the member(in block letters)
Fathers Name (or husbands Name in the case of a Married women)
2. Name and Address of the Factory/Establishment in which the
member was last employed
3. Account No. PN/HR
4. Date of leaving Service
5. Reasons of leaving Services
6. Full postal address( in block letters)
Shri/Smt./Kumari
S/o/w/o/D/o ..................................................................................
................................................................................................................
................ Pin NO. ....................................
7. Modern of Remittance

(a) By postal Money Order at

my cost
(b) By account payees cheque
sent direct for credit to
my S.B A/C
( Schedule Bank /P.O)

Put a Tick in Box against

the one opted
To the address given against item
No.7
S.B Account No
Name of the Bank
Branch
Full address of the Branch
.........................................

(Advance Stamped Receipt furnished below)

Certified that the particulars are true to the best of my knowledge
Date of joining the Establishment ...
Date of Birth .

Employees Provident Fund (EPF) 15

Contribution for the current financial Year

Month Contribution
Period of Break if any
Month

Wages

EMPLOYEE

EMPLOYERS

EPF

EPF

FP

FP

TOTAL
EPF

FP

March
April
May
June
July
August
Sept
Oct
Nov
Dec
Jan
Feb
(Information to be furnished by the Employer if the Claim Form is
attested by the Employer)
Certified that the above contributions have been included in the
regular monthly remittances. The Applicant has signed / thumb
impressed before me

Date..

Signature or Left / Right hand

thumb impression of the member

Designation & Seal:

Encl. Declaration of non-employment
Note: in the case of submission of application for settlement under clause
(s) of sub-paragraph (i) and in clause(b) of sub-paragraph(2) of paragraph
69 of the EPF scheme1952, the claim should be submitted after two months
from the date of leaving service provided the member continues to remain
un-employed in an estt.to which the Act applies.
Date..
16 Employees Provident Fund (EPF)

Signature or Left / Right hand

thumb impression of the member

ADVANCED STAMPED RECEIPT

(To be furnished only in case of 8(b) above)
Received sum of Rs (Rupees . only)
from Regional Provident Fund Commissioner/Offer in charge of Sub
Regional Officeby deposit in my Saving Bank
Account towards the settlement of my Provident Fund Account.
Affix 1.00
rupee
Revenue
stamp

The space should be left blank

which shall be filled in by
Regional Provident Fund
Commissioner/ Officer incharge of Sub Regional Office

(For the use of Commissioners Office)

A/C Settled in Part/Full entered in F-21-A/2 and withdrawal Register
/ Form 3(FPF) Form9(Revised)

Clerk
Head Clerk
Under Rs..
P.I.No..

M.O /Cheque

Account No.

Passed for payment for Rs (in words) ..

M.O Commission (if any)

Net Amount to be paid by M.O

Account Officer
Date

(FOR USE IN CASH SECTION)

Paid by cheque No . Date .Vide
cash book and Account No.10 Debit item No .....................................

H.C

A.C/R.C

Employees Provident Fund (EPF) 17

18 Employees Provident Fund (EPF)

Employees Provident Fund (EPF) 19

Rajiv Education & Employment Mission in Andhra Pradesh (REEMAP)

Department of P.R & Rural Development, Govt. of A.P.
Office: 4th Floor, North Block, HMWS & SB Building,
Khairatabad, Hyderabad - 500 004,
Ph. No. : 040-23322073/74, http://ryk.cgg.gov.in