Presentation on epfo
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The Employee Provident Fund (EPF) established in 1952 provides benefits like provident fund, pension, and death benefits to members. Members receive partial contributions from their employers at 12% annually along with guaranteed interest rates set by the government. Upon resignation, members can settle their account to receive their own contributions plus employer contributions and accrued interest.
Presentation on epfo
- 1. PRESENTATION ON EMPLOYEE PROVIDENT FUND Act - 1952 A STATUTORY BODY UNDER MISTRY OF LABOUR & EMPLOYEMENT Web site: www.epfindia.org
- 2. BENEFITS TO MEMBERS UNDER EPF SCHEMES Provident Fund Benefits Pension Benefits Death Benefits There are 3 major benefits
- 3. Employer also contributes to Members PF @ 12%. EPFO guarantees the Employer contribution and credits interest at such rates as determined by the Central Government. (Present Interest Rate is 9.5%) On resignation, the member can settle the account. i.e., the member gets his PF contribution, Employer Contribution and Interest. 1. Provident Fund benefits
- 4. Pension to Member Pension to Family (on death of member). Scheme Certificate Withdrawal Benefit 2. Pension benefits
- 5. Member has to attained the age of 50 years or more. Member has to complete a total service of 10 years or more. Member should not get any other EPF Pension. Member has to apply in Form-10D at the EPF Office where Member has last worked through last Employer. How to get Pension
- 6. If the member wants to draw pension from a different place, The member have to furnish appropriate Bank / Post Office address in the application form. Pension is distributed through Post Offices or through some designated banks only (eg: Indian Bank, SBI, Indian Overseas Bank, HDFC Bank, ICICI and UTI Bank) There Four situations when pension can be applied for:
- 7. 1. On superannuation (Age 58 years or more and atleast 10years of service) The member can continue in service while receiving this pension On attaining 58 Years of age, a EPF member cease to be a member of EPS automatically 2. Before superannuation (Age between 50 and 58 years and at least ten years of service) The member should not be in service 3. Death of the member Death while in service or Death while not in service 4. Permanent disability Permanently and totally unfit for the employment which the member was doing at the time of such disablement
- 8. Scheme Certificate This Certificate shows the service & family details of a member This is issued if the member has not attained the age of 58 while leaving an establishment and he applies for this certificate Member can surrender this certificate while joining another establishment and the service stated in the certificate is added with the service he is gaining from the new establishment. After attaining the age of 50 or above, the member can apply for Pension by surrendering this scheme certificate (if total service is at-least 10 years) This is a better choice than Withdrawal Benefit, as a member dies holding a valid scheme certificate, his family will get pension (Death when NOT in service)
- 9. Withdrawal Benefit If not eligible for pension, member may withdraw the amount accumulated in his pension account. The calculation of this amount is based only on (i) Last average salary and (ii) Service (Not based on actual amount available in Pension Fund Account) No amount is taken from Member to give Pension to the Member. Employer and Govt. contributes to Pension fund @8.33% and @1.61% respectively EPFO guarantees pension to members, even if the Employer has not contributed to Pension Fund.
- 10. How to settle EPF account The Member has to resign or retire from the establishment and apply for settlement of PF in Form-19. If the exit is before 55 years of age, the member should not work in any covered establishment for a period of 2 months from the exit date. If the member dies, Family members/Nominee have to apply in Form-20 for settlement of PF (In case of death, apply in From- 10D and Form-5IF for Pension and EDLI also) How to transfer the account / What to do if joined in another establishment The Member has to apply in From-13(R) through the NEW Employer at the EPF Office from which transfer is sought clearly stating New and Old EPF Numbers. Member has to obtain new EPF Number from the New Employer. New EPF Number will be allotted by New Employer, not by EPFO.
- 11. Employees' Deposit Linked Insurance (EDLI) Scheme On death of a member, the Family Members or Nominee (whoever has the entitlement to claim Provident Fund amount) can claim for EDLI Benefit. Maximum amount payable is Rs. 60,000/-. The nominee(s) have to apply in From-5IF through the Employer. No amount is taken from the Member for this facility. Employer contributes for this. Average PF Balance, salary and service are the factors considered for the calculation of this amount
- 12. Advance/ Withdrawals may be availed for the following purposes: •Marriage / Education Purpose : For the marriage/education of Self & Family Eligibility : Should Complete atleast 7years of service. Max Amount : 50% of Emp’e Share Document : Apply in Form 31 thorough the Employer •Treatment Purpose : Treatment of Self, Family (Dependents) Eligibility : No minimum service required Max : 6 times of Wages or Full of Emp’e Share Documents : Apply in Form 31 through the Employer •Purchase or construction of Dwelling house Purpose : Purchase or Construction House/Flat Eligibility : Should complete 5years only in one service. Max Amount : 36 times of Wages. Documents : Apply in Form 31 through Employer
- 13. •Repayment of Housing Loan Purpose : Payment of House Loan Eligibility : Should complete 10years only in one service. Max Amount : 36 times of Wages Documents : Apply in Form 31 through the Employer •Purchase of Plot Purpose : Purchase of Site/Plot Eligibility : Should complete 5years only in one service Max Amount : 24 times of Wages Documents : Apply in Form 31 through the Employer •Addition/Alteration of House Purpose : Repair of house Eligibility : Should complete 5years only in one service / Construction of House. Max Amount : 24 times of Wages Documents : Apply in Form 31 through the Employer •Lockout Purpose : Lockout of Closure of the Establishment Eligibility : Should be closed for 15days / No wages for 2months. Max Amount : Total of wages multiplied by no.of months closed Documents : Apply in Form 31 through the Employer
- 14. •Withdrawal Prior to Retirement Purpose : Withdrawal prior to Retirement Eligibility : No min service, atleast 54 years of age / 1year before retirement. Max Amount : 90% of total of both shares Documents : Certificate from the Emp’r showing the date of retirement / Apply in Form 31 •Other Advances Purpose : Advance in Abnormal Conditions Eligibility : Certificate of damage from appropriate authority Max Amount : Rs. 5000/- or 50% of member’s own share of contribution. Documents : Certificate from Appropriate authority / Form 31. IMPORTANT: • 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.
- 15. Looking for your Feed back saikishore608@gmail.com K. SAI KISHORE Senior Executive HR HYDERABAD