The Employees’ Provident Fund Organization is a statutory body created by the government of India to encourage cost savings for retirement amongst employees throughout the nation. As India’s biggest social security organization, EPFO ensures financial security for workers through different schemes and services. In this article, we shall discuss the structure, functions, advantages and registration procedure of EPFO for both employers and employees.
What is EPFO?
The Employees’ Provident Fund Organisation was created in 1952 under the Employees’ Provident Funds & Miscellaneous Provisions Act. It is a subordinate agency of the Ministry of Labour & Employment, Government of India having its main office at New Delhi. EPFO manages provident fund, retirement plan and insurance program for employees in India.
Structure of EPFO
EPFO is administered by a tripartite body made up of representatives of the government, companies and workers known as the main Board of Trustees. It’s chaired by the Minister of Employment and Labour. The main schemes managed by EPFO include:
- Employees’ Provident Funds Scheme, 1952
- The Employees’ Pension Scheme, 1995
- The Employees’ Deposit Linked Insurance Scheme, 1976
Main Functions of EPFO
EPFO has several critical functions including:
- Enforcing the Act: Compliance with Employees’ Provident Funds & Miscellaneous Provisions Act across India.
- Maintaining Individual Accounts: Record keeping of individual accounts for employees.
- Settlement of Claims: Processing claims for provident fund withdrawals, pension settlements and insurance claims.
- Investment of Funds: Managing and investing the money accumulated.
- Ensure Prompt Payments: Payment of pensions and settlements on time.
- Updating Records: Keeping member records accurate.
EPFO also is the nodal organization for bilateral social security agreements with various countries and is among the biggest Social Security organizations in terms of beneficiaries in addition to monetary transactions worldwide.
EPF Interest Rate
For the current financial year 2024 the EPF fixed rate is currently 8.25%. The interest is calculated annually and added to the contributions by companies and workers to produce the current EPF account balance.
EPF Benefits
The EPF scheme provides numerous benefits to employees such as:
- Long Term Savings: Allows people to save for the long haul and have economic security after retirement.
- Convenient Deductions: Monthly deductions from the employee’s salary build as time passes and provide a low-cost investment with no big one-time purchase.
- Financial Support in Emergencies: Provides cash for unexpected circumstances like health emergencies, weddings or even higher education.
- Retirement Savings: Builds up funds for retirement.
Services Offered by EPFO
EPFO offers several services to simplify processes and user comfort:
1. Universal Account Number:
A 12 digit number assigned to each employee which enables several EPF accounts being linked. UAN enables employees to download UAN cards, update KYC details and look at PF passbooks.
2. UAN Member e-Sewa Portal:
Allows employees to register and activate their UAN and offer services like downloading UAN cards, updating KYC info, raising transfer requests and more.
3. Inoperative Accounts Online Helpdesk:
Provides basic employment and personal details to members to track and settle old or dormant EPF accounts.
4. Online EPF Transfer:
Transfers EPF accounts from employer to employer using the Unified Portal.
5. Online PF Withdrawal:
Allows workers to withdraw provident funds online if they are unemployed for 60 days post-resignation if their UAN is associated with Aadhaar.
6. Online Registration of Establishments:
Facilitates the web based registration of establishments with EPFO, making it simple and efficient to obtain a PF code.
7. Online PF Payments:
Establishments have to pay EPF dues online, and many banks are participating in the collection.
8. Centralised Software for International Workers:
Generates Certificates of Coverage for EPF members doing work in countries with Social Security Agreements with India.
9. SMS Service/Alerts and Missed Call Service:
Access to EPF account details via SMS and missed calls to check balance, last contribution & KYC status of members.
10. Grievance Redressal:
Offers a grievance filing location for EPF withdrawals & transfers, pension settlements along with other matters. The EPFO strives to resolve these grievances promptly.
11. Passbook & Claim Status:
Members can access their passbooks and also claim status online.
EPFO Registration Process
Here is the EPFO registration process for both employers and employees:
Registration for Employers
Employers should register their establishments with EPFO under the Employees’ Provident Funds & Miscellaneous Provisions Act. Step by step guide to employer registration:
- Go to the EPFO Website: Visit the official EPFO Website and select “Establishment Registration.”
- Sign Up: Create an account with basic details as name, mobile number and email address of employer. The employer will get a confirmation email once logged in.
- Login: Login with credentials you provided during sign up.
- Fill in Establishment Details: Enter needed establishment details like name, address, establishment type, date of setup, PAN & TAN.
- Give Owner Details: Fill in the owner’s name, address, designation and contact details.
- Submit Documents: Upload PAN card, proof of address along with other documents.
- Digital Signature: Make use of a digital signature to verify the application. The digital signature must be registered with EPFO.
- Submit Application: View application information and submit online.
- PF Code Allotment: The establishment will then receive a PF code and can begin contributing to the EPF once the application is processed.
Registration for Employees
Employees have to activate their UAN to use the different EPFO online services. Here are the steps to employee registration:
- Obtain UAN: The employer will give the worker the UAN.
- Go to UAN Member e-Sewa Portal: Head over to EPFO member portal.
- Activate UAN: Click “Activate UAN” and enter details as UAN, address, birth date and mobile number.
- Receive OTP: An OTP is delivered to the registered mobile number. Enter the OTP to confirm the mobile number.
- Create Password: Make a password for the UAN portal.
- Login: Log in with the UAN and the newly generated password.
- Update KYC Details: Update KYC details like PAN, Aadhaar and bank account details.
- Access Services: Once registered, employees can download UAN cards, check EPF passbooks, make transfer requests and other things.
Conclusion
The Employees’ Provident Fund Organisation is the foundation of India’s social protection system and also guarantees economic security to millions of employees nationwide. With a number of schemes and services EPFO ensures that employees save for retirement, receive financial help in case of an emergency and live a comfy post-retirement life.
Different digital initiatives have simplified the registration of employers and workers to comply with the laws and enjoy the advantages of the EPF scheme. The structure, functions, and advantages of EPFO are essential information for employees and employers to maximize the advantages of this essential organization.
FAQs
What is the overview of EPFO?
The EPFO administers the employees’ retirement plan in India that includes mandatory provident fund, simple pension scheme and disability/death insurance scheme. Additionally, it manages social security agreements with other nations.
What is eligibility to get PF registration?
Personnel of organizations with twenty or more workers earning a basic salary up to Rs. 15,000 a month. However voluntary enrollment is available for individuals above the threshold.
Can I apply for PF online?
You have to visit the EPFO portal, sign in using your UAN/password and type in the Captcha code. Then you visit the ‘Online Services’ tab and click’ Claim’ to make your online request.
How to create a brand new PF account?
In the Member section click on the ‘Register Individual’ tab. Enter employee details like PAN, bank details etc, Aadhaar. Approve most details within the ‘Approval’ area. EPFO produces a new UAN and the employer links the PF account with the worker UAN.
How to activate an EPF account?
Visit EPFO Member Portal and simply click on “Activate UAN”. Enter your UAN/member ID, mobile number, DOB, name, Aadhaar number, captcha code and press “Get Authorization PIN.” Now login to your EPF account with your password and UAN.
