what is EPFO?

What is EPFO?

EPFO is one of the world’s largest social security organisations in terms of the volume of financial transactions undertaken and clientele. According to the Annual Report 2015-16, EPFO currently maintains 17.14 crore accounts pertaining to its members. It provides Universal Social Security Coverage on a mandatory basis by way of Provident Fund, Pension and Life Insurance for all workers of the country.transfer at the time of changing jobs.

What is EPF Scheme?

Employee’s Provident Fund (EPF) is a retirement benefit scheme, available for all salaried employees. It is looked after and maintained by the Employees Provident Fund Organisation of India (EPFO). As per law, any registered company which has more than 20 employees has to get registered with the EPFO.

What is EPF Eligibility?

All salaried employees are eligible for the Employee’s Provident Fund (EPF). However, for a salaried employee earning less than Rs 15,000 per month, it is mandatory for them to register for an EPF account. As per law, any registered company which has more than 20 employees has to get registered with the EPFO. If one is drawing a salary higher than Rs 15,000 per month, they are termed a non-eligible employee and it is not mandatory for them to become a member of the EPF, although they can still register. Companies with less than 20 employees can also register voluntarily. One needs to submit details of one’s company for EPF registration, along with details of the company’s owners. Registration for the EPF scheme can be done on the official website.

What is the EPF Contribution by Employees and Employers?

Under the EPF scheme, both the employee and the employer make an equal contribution towards the scheme. Once the employee retires, he/she gets a lump sum amount – which includes the contribution made by self and the employer – with interest. The contribution made by both the employer and the employee is 12 per cent of the employee’s basic salary. Though the entire 12 per cent of the contribution made by the employee goes into their EPF account, 8.33 per cent out of 12 per cent from the employer’s contribution is diverted to the employee’s EPS (Employee’s Pension Scheme) account. The balance of 3.67 per cent from the employer’s side goes into the employee’s EPF

Click to PF Claim
https://unifiedportal-mem.epfindia.gov.in/memberinterface/

Milan Tomic

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