EPF is the main scheme under the Employees’ Provident Funds and Miscellaneous Act, of 1952. The scheme is administered by the Employees’ Provident Fund Organisation (EPFO). Every establishment with 20 or more employees is covered, and some organizations that employ fewer than 20 people are also covered, subject to certain constraints and exemptions. The employee and employer each contribute 12% of the employee’s basic salary and dearness allowance towards EPF. After the employer retires, they receive a lump sum that includes both their own and the employer’s contributions, in addition to interest on both. Currently, the rate of interest on EPF deposits is 8.15% p.a.
EPFO (Employee Provident Fund Organization)
The Employees’ Provident Fund Organisation (EPFO) is a non-constitutional body that promotes employees to save funds for retirement. The organization is governed by the Ministry of Labour and Employment, Government of India, and was launched in 1951.
The schemes offered by the organization cover Indian workers and international workers (from countries with whom the EPFO has signed bilateral agreements).
Objectives of EPFO
Given below are the main objectives of the EPFO:
- To ensure every employee has only one EPF account.
- Compliance must be facilitated easily.
- Make sure organizations follow all the rules and regulations set up by the EPFO on a regular basis.
- To ensure that online services are reliable and to make improvements in their facilities.
- For all member accounts to be accessed online easily.
- Claim settlements are to be reduced from 20 days to 3 days.
- Promotion and encouragement of voluntary compliance.
Universal Account Number (UAN)
All subscribers of EPF can access their PF accounts online and perform functions like withdrawal and checking EPF balance. The Universal Account Number (UAN) makes it convenient to log in to the EPFO member portal.
The UAN is a 12-digit number allocated to each member by EPFO. The UAN of an employee remains the same even after he/she switches jobs. In the event of a job change, the member ID changes, and the new ID will be linked to the UAN. However, employees must activate their UAN in order to avail the services online.
You can get your UAN through your employer. In case you are unable to do so, you can easily log in to the UAN portal with your member ID and find the UAN.
Schemes Offered Under the EPFO
Given below are the various schemes that are present under the EPFO:
- Employees Provident Funds Scheme 1952 (EPF)
- Employees’ Pension Scheme 1995 (EPS)
- Employees’ Deposit Linked Insurance Scheme 1976 (EDLI)