EPF FAQ What is EPF? EPF is Employees Provident Fund.

. Both the Employee and the Employer contribute to this fund. Who manages the Fund? This is a Fund maintained by the EPF Organisation. The Central Board of Trustees (CBT) of this organization is the body which controls this organization. It has representatives of Employees, Employers and the Government. The fund is managed by the CBT. Is it safe? It is absolutely safe as it is managed by the tripartite body as mentioned above. How much one can contribute? One can contribute generally @ 12% of ones emoluments. However if one is employed in brick, beedi, jute, guar gum factories and coir industry other than spinning sector the rate of contribution is 10%. [Emoluments include basic wages, dearness allowance, cash value of food concession and retaining allowances, if any.] Though this is the statutory limit, one can contribute more than this rate also. The percentages of 12% and 10% of the emoluments are subject to a ceiling of Rs 6500/-. That is, if the emoluments per month is upto Rs 6500/-, the contribution will be 12 or 10% of that amount. If the emoluments are more than Rs 6500/-, then the contribution amount will be restricted 12 or 10% of Rs 6500/-. The Employer also will contribute at an equal rate of 12% or 10% as the case may be. This contribution is also subject to the ceiling or Rs 6500/- as explained. What are the benefits from the fund? There are three benefits to the members of the fund. One is the benefit of Provident fund saving with interest. Second is pension. The third is deposit linked insurance. If one becomes the member of EPF he automatically becomes the member of Employees Pension Scheme 1995 as well as the Employees Deposit Linked Insurance Scheme 1976 (EDLIS). The entire contribution of the employee and 8.33% of the contribution of the employer will go to the EPF. This will fetch annual interest. The rate of interest varies from year to year depending upon the earning of the Fund. The balance contribution of the employer will go to the Employees Pension Fund. The central Government also contributes at the rate of 1.16% to the Pension Fund. The employee need not contribute anything to the Pension Fund.

The employer will contribute 0.5% of the emoluments to the EDLIS. Employees are not required to contribute to the EDLIS. How to know the balance in the fund? The balance in the EPF can be seen from the annual account slip issued by the EPFO to each member. How to take advance? One can withdraw some amount from his EPF for some specific purposes only. The purposes for which such withdrawals and loans can be availed and other conditions are as follows:
Advance/ Withdrawals may be availed for the following purposes : Marriage / Education Treatment Purchase or construction of Dwelling house Repayment of Housing Loan Purchase of Plot Addition/Alteration of House Repair of House Lockout Withdrawal Prior to Retirement Other Advances Notes For Marriage / Education

Type of Advance Under Para 68-k

Maximum Purpose For the marriage of: Amount** Should 50% of complete Employee

Proof/ required Apply in Form-31 through the

Eligibility Admissible documents

of the Scheme

atleast 7

share at the Employer time of tendering Bonafide Certificate duly indicating the fees payable from the educational institution Marriage invitation card along with the application should be submitted through the employer

1. self 2. son, daughter 3. brother, sister

For education of : o o self son, daughter

years of service.

the 3 times in application the entire service

For Treatment

Type of Advance Under Para 68-j of the Scheme

Purpose

Eligibility

Maximum Proof/ Admissible documents Amount** required 6 times of Wages OR Full of Employee share (whichever is less) Certificates of proof as mentioned in the eligibility column Apply in Form-31 through the Employer

For the treatment of :

1. self 2. Hospitalisation for 1 month or

more

Whenever required for treatment

1. major surgical 2.
operation in a hospital suffering from TB, leprosy, paralysis, cancer, mental derangement or heart ailment and having been granted leave by his employer for the

No minimum service required Certificate from ESI or from Employer that the ESI facility are not available to the member a doctor [ or registered medical practitioner] of the hospital certifies that a surgical

treatment of said illness

operation or hospitalisation for 1 month or more is/was necessary In case of TB, leprosy ...etc., a specialist doctor should certify

2. family( spouse, son,

daughter, dependent father, mother) 1. major surgical operation in a hospital and 1 month or more hospitalisation for the operation

2. suffering from TB,

leprosy, paralysis, cancer, mental derangement or heart ailment

For the construction/ purchase of dwelling unit (house/ flat)

Type of Advance

Purpose

Eligibility

Maximum Admissible Amount**

Proof/ documents required Declaration in the Proforma obtained along with application signed by Member Apply in Form-31 through Employer

For the construction/ Under Para 68- purchase of B of the Scheme dwelling unit (house/ flat) Only Once (either 'construction or purchase of house' or 'repayment of housing loan)

Should complete 5 Years of service Only once in service property should be in the name of 36 times of self or Wages spouse or jointly should not be a joint property owned by other than the spouse

Apply in Form31

Repayment of housing loan

Type of Advance

Purpose

Eligibility

Maximum Admissible Amount** 36 times of Wages

Proof/ documents required Declaration in the Proforma obtained with approval and signed by the Member Apply in Form31 through the Employer

Under Para 68- Repayment of BB of the Scheme housing loan

Should complete 10 Years of service

Only Once (either 'construction or purchase of house' or 'repayment of housing loan)

Only once in service property should be in the name of self or spouse or jointly should not be a joint property owned by other than spouse

Apply in Form31

For the purchase of site/ plot

Type of Advance Under Para 68-B of the Scheme

Purpose For the purchase of site/ plot

Eligibility

Maximum Admissible Amount** Wages

Proof/ documents required Filled-up Declaration(from the Employee in the prescribed

Should complete 24 times of 5 Years of service

Only once in

form and Only Once service property should be registered in the name of self or spouse or jointly should not be a joint property owned by other than spouse Apply in Form-31 through the Employer Addition/alteration of house Copy of the Purchase Agreement enclosed with the application.

Type of Advance Under Para 68-B(7) of

Purpose Addition/alteration of house advance can be availed for repair of

Eligibility Should complete 5 Years after construction Annexure III (construction / completion certificate/ utilisation certificate) should be submitted Only once in service property should be in the name of self or spouse or jointly

Maximum Proof/ Admissible documents Amount** required 12 times of Wages Certificates of proof Apply in Form-31 through the Employer

the Scheme (same type of

Only Once

house)

Apply in Form-31

should not be a joint property owned by other than spouse

Repair of house

Type of Advance Under Para 68-B(7) of the Scheme

Purpose Repair of house (same type of advance can be availed for

Eligibility Should complete 10 Years after construction Annexure XIII (construction completion certificate) should be submitted Only once in service property should be in the name of self or spouse or jointly should not be a joint property owned by other than spouse

Maximum Admissible Amount** 12 times of Wages

Proof/ documents required Certificates of proof Apply in Form31 through the Employer

Only once

alteration of house)

Lockout or closure of the establishment

Type of Advance

Purpose

Eligibility No minimum service

Maximum Admissible Amount** equivalent to the total of

Proof/ documents required Declaration Apply in Form31

Under Para 68- Lockout or H of the Scheme closure of the establishment

should be closed wages for more than 15 multiplied by days no. of months closed

Whenever need arises

Wages for atleast 2 months is not paid

Balance should be there in Employee's share. If closed for more than 6 months, advance can be allowed from Employer's share also

Withdrawal prior to retirement

Type of Advance

Purpose

Eligibility No minimum service atleast 54 years of age

Maximum Admissible Amount** 90% of total of both shares

Proof/ documents required Certificate from the employer showing the date of retirement

Under Para 68- Withdrawal NN of the Scheme prior to retirement

Only once

1 year before

Apply in Formretirement 31

Other Advances
68L : ADVANCE IN ABNORMAL CONDITIONS Documentary Support Appropriate Authority.

Types of Benefit Grant of advance in abnormal calamities etc.

Eligibility Certificate of damage from authority. State Govt. declaration.

Eligible Amount Rs. 5000/- or 50% of members own share of contribution (To apply within 4 months)

Form

No.31 Certificate from the

conditions, Natural appropriate

68 M : ADVANCE TO MEMBER AFFECTED BY CUT IN THE SUPPLY OF ELECTRICITY Types of Benefit Grant of advance to members affected by cut in the supply of electricity Eligible Amount a month OR Documentary Support Govt. regarding cut in the supply of electricity.

Eligibility The advance may be granted only to a member whose total wages for any one month January 1973 were 3/4 or less than 3/4th of wages for a month
th

Form

Wages for No.31 Certificate from State

commencing from the month of Rs.300/-

68 N : GRANT OF ADVANCE TO MEMBERS WHO ARE PHYSICALLY HANDICAPPED Types of Benefit Eligibility Eligible Form Documentary

Amount To Physically Handicapped member for purchase of an equipment required to minimize the of handicap. Production of medical certificate from a competent Basic wages+ DA for six months

Support No.31 Certificate from the Medical practitioner to the effect that the member is physically handicapped..

medical practitioner or own share of to the effect that he contribution with is physically interest or cost of equipment which ever is least.

hardship on account handicapped

**Notes The amount of advance/withdrawal is not required to be refunded under normal circumstances. If the amount is not utilised, the same should be refunded with penal interest A fixed minimum balance in the account will be kept before arriving at the amount of advance admissible subject to the above conditions For calculation/ computing the period of membership U/P 68B, 68BB, 68K, total service exclusive of periods of break under the same employer before the scheme is applied to him, as well as period of membership of the fund is always included

How to withdraw the entire balance? Withdrawal of the entire balance or final settlement can be made on certain events. In some cases the application for it can be made immediately and in certain cases after two months of the event. These are as below:SETTLEMENT UNDER PARA 69-TO MEMBER: THROUGH FORM No.19 Immediate settlement without waiting period of 2 months 69(1)(a) Retirement after attaining 55 years of age. Settlement only after a waiting period of two months 69(1)(e)(i) transfer of a non retrenched employee from a closed establishment to

uncovered establishment. 69(1)(b) Retirement on account of total 69(1)(e)(ii) Transfer of an employee from a and permanent incapacity due to bodily covered establishment to an un-covered or mental infirmity . establishment under the same employer. 69(1)(d) Termination of service on 69(2) Other cases viz. Resignation, Leaving retrenchment. service, etc. Note: For female members leaving service for 69(1)(dd) Termination on V.R.S the purpose of getting married; waiting period not applicable. 69(1)(c) Migration from India for 69(1)(e)(iii) Members discharged & permanent settlement abroad or taking retrenchment compensation paid under I.D. Act employment abroad. 1947. Can it be transferred? Yes, the fund can be transferred on certain occasions, such as when an employee leaves one job and joins another. In such cases a new account number is allotted. The old balance can be transferred to the new account. Apply in From-13(R) through the NEW
Employer at the EPF Office from which transfer is sought. Clearly state New and Old EPF Numbers. New EPF Number will be allotted by New Employer. Not by EPFO.

Should one transfer or close? It is always better to transfer the account rather than closing. After it is our saving which will help us in times of providence. What benefits are available under the EDLIS? Assurance Benefit : The benefit provided under the Employees' Deposit Linked Insurance Scheme is called Assurance Benefit. On the death of the member while in service, the nominee or any other person entitled to receive the Provident Fund benefits will, in addition to the Provident Fund, receive the Assurance Benefit under Employees' Deposit Linked Insurance Scheme . Scale of Assurance Benefit : From 1-4-93 onwards the amount of Assurance Benefit payable is an amount equal to the average balance in the amount of deceased in the Fund during the preceding 12 months or during the period of his membership whichever is less, except where the average balance exceeds Rs. 25,000/- amount payable shall be Rs. 25,000/- plus 25% of the amount in excess of Rs.25,000/- subject to a selling of Rs. 35,000/-. The Form prescribed for claiming the Assurance Benefits under the Employees' Deposit Linked Insurance Scheme, 1976 , is Form 5(IF).

* w.e.f. 24.6.2000 the amount of benefits has been increased to 60,000/Who can become a member of EPF? Every employee (including part-time workers and those employed by or through contractors) shall be entitled to become a member of the Scheme from the date of joining the factory or the other establishment. (Para 26) Every newspaper employee other than an excluded employee shall be entitled to become member of the Fund after completion of 3 months continuous service or if he has actually worked for 60 days during 3 months or less (There is no wage ceiling in the case of newspaper employee). (Para 80) Every Cine Worker other than an excluded employee shall be entitled to become a member of the Fund if he has worked in not less than three feature films with one or more producers provided his pay at the time of joining the Fund does not exceed Rs. 1600/P.M or Rs.15,000/- per year. (Para 81) What are the responsibilities of the employer? The employer has the following responsibilities:

Enrol all categories of employees including the employees engaged by or through contractors and also piece rated, hourly rated employees. Remit the contributions and administrative charges before the 15th of the following month. File the initial returns of Form 9, Form 3(P.S.), form 5A. File the monthly returns in Form 12A, Form 5, Form 10 and Challans for remitting the dues. Maintain the contribution card in respect of each employee in Form 3A and submit the annual returns in Form 3A and 6A after reconciliation with Challans and form 12A. The employer has to ensure that statutory dues in respect of contractors employees are remitted and returns filed. Employer should attest the form No.2 and the claims forms submitted by the member/ legal heirs/ nominees. Make available all relevant records for inspection of visiting officials with due authorisation.

What if the company is closed or if the employer refuses to cooperate?

If the company is closed and the employer is either not traceable or refused to sign the subscriber to the fund can still submit his claim for settlement through other means. It is the duty of the employer under the Act & Scheme to help Employees' Provident Fund organisation to settle the Provident Fund dues of his employees. He has to complete the prescribed application within 5 days of receipt [para72(5)] forms & hand over it to the member when he leaves the service. When a member finds it difficult to get the form attested by the employer, he can get the attestation of any of the following officer & send to the Provident Fund office: 1. Manager of a bank. 2. By any gazetted officer. 3. Member of the Central Board of Trustees./ committee/ Regional Committee (Employees' Provident Fund Organization). 4. Magistrate/ Post/ Sub Post Master/ President of Village Panchayat/ Notary Public.