EPF is a small contribution from the pay of employees’ remuneration deducted under the Employee Provident Fund Scheme. Employee Provident or EPF is generally 12% of the basic salary of the employees, which can be used as a fund during their retirement. Although, employees can withdraw this amount earlier also.
This article will share all the information regarding EPF and how to apply it online.
What is EPF?
All the people who are related to the job sectors would be well aware of the term PF. PF is a short-term used for Provident Funds and is a small amount contributed by the employee during his/her working duration. It is usually 12% of the basic salary of the concerned employee, and the best part is not only the employee but the employer too has an equal contribution to the PF of the concerned employee.
Furthermore, it is in the hands of the employee to raise the percentage of his contribution to the provident funds. This means if he/she wants can contribute more than the basic limit of 12% to the provident fund that can be further used as pension during his/her retirement.
The percentage of PF amount deposition varies for both the employer and employee. The contribution made by the employer gets directly deposited in his PF account while out of 12% contribution of the employee’s salary is further divided into two parts in which 8.33% is contributed to the pension scheme, and 3.67% is contributed to his/her PF account.
Why are EPF funds necessary?
There are various advantages of Provident funds that make it necessary for every employee working in job sectors:
- The amount provided retirement is not only limited to the employee. He can further select a nominee who would be provided his pension amount in case of his/her death.
- It’s quite hard to work during your old age. PF provides you the security of fixed income in your old age.
An individual has an opportunity to invest more than the basic PF percentage.
- Under the EPF (Employees Provident Fund) Scheme, the employees are also benefitted with the life insurance covers.
- If an individual withdraws his PF after 60 yrs of age, he can avail of the benefits of both EPF and EPS.
- It is not compulsory to avail of your provident fund only at the times of retirements, but an individual can also avail it in emergencies such as repayments of loans, wedding, loss of a job, etc.
- An individual does not require opening up a new account as he/she can easily link their old account.
Note: Contributing PDF is not mandatory; however, it is suggested because of its various benefits.
When can an employee apply for his EPF?
An employee can avail of his Provident fund partially or completely. There are some conditions under which the employee can withdraw his PF completely. These are as follows:
- After the retirement
- In case the employee is unemployed for more than two months. To avail the PF in such a condition, he/she has to get a certification from the gazette officer that the employee is unemployed for a period of two months or more.
- Further, an individual cannot withdraw complete PF while switching from one job to another. Whereas, partially withdraw of PF can be accomplished under different conditions mentioned as follows:
How to apply for EPF online?
Withdrawal of EPF online:
An individual who wants to withdraw his EPF online has to submit an online application in a prescribed format. He/she must have an activated Universal Account Number linked with their KYC. Here are the steps you need to follow:
- First of all, visit the official UAN portal. Press here to visit.
- This link will redirect you to the homepage where the employee has to log in to their UAN account by entering the details, password, and captcha code.
- Click all manage tabs and select KYC. After that, the system will take a few seconds to verify the KYC details.
- After verification, the applicant can move-ahead by clicking on the online services option. A dropdown menu will appear from which you have to click on the claim option.
- It will redirect you to a new tab displayed as the claim screen. It will contain all the details regarding the members and other survivors. Now submit the claim form by selecting the option ‘proceed for an online claim.’
- Now a claim form will be displayed on your computer screen. An applicant has to click on the Claim Form given under the tab ‘I want to Apply for’ EPF settlement, Pension withdrawal, or EPF part withdrawal.
NOTE: Make sure you are eligible to withdraw your EPF. If you are not eligible, none of them would appear on the screen.
Procedure for Online payment of Provident Fund Balance:
As per the new rules, all the organizations have to pay provident funds online. Here is the procedure you need to follow:
- Log in to the official EPFO portal.
- It will redirect you to a page that will notify a dialogue box as “establishment sign in”
- Sign in your account by entering the required details such as password and username.
- Keep your eyes on the payment option and select the ECR upload option from the dropdown list.
- Select the appropriate options and upload the ECR text file.
- Thereafter the uploaded file would be validated by the system. After validation, a TRRN file would be generated along with a verify tab.
- Select the verify tab; it will take you to a new page where you have to prepare a Challan to generate ECR summary sheet.
- Click on the verify tab and enter the admin/inspection charges and select the “generate Challan” option.
- Select the “finalize” option to verify the Challan amount. Choose the payment option and select the online payment method. Select your bank and click on the continue button. A new page would appear to fill in the credentials and accomplish the procedure.
Here you are done with the online payment of your PF.
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