Know About PF With Acts

What is the Employee Provident Fund (EPF)?

Employees Contribution:

12% of the Gross – HRA Salary of.

Bifurcations of Contribution:

• EPF: 12% (Difference of “ee” share and Pension Contribution)

Employer’s Contribution

13% of the Gross – HRA Salary of.

Bifurcations of Contribution:

• EPF: 3.67% (Difference of “ee” share and Pension Contribution)
• EPS: 8.33% of Basic Salary upto Rs.15,000
• EDLI: 0.50%
• EPF Admin Charges: 0.50% (wef 01.06.2018)
• EDLIS Charges: 0% (w.e.f. 01.04.2017)

Withdraw permission

You can withdraw the maximum amount of 90% of the total corpus, if you choose to withdraw the corpus 1 year before your retirement.

The event of loss of job has also been considered in the latest EPF withdrawal rules. According to these rules, 75% of the accumulated EPF corpus can be withdrawn 1 month after leaving the job. The remaining 25% can be withdrawn after 2 months of unemployment.

There are other options for partial withdrawal after a minimum of five to seven years of service. Such withdrawals can be on account of medical emergencies, house renovation, wedding, and home loan repayment.

Form 11 (Employee Registration):

   – Purpose: Form 11 is a declaration form to be filled by employees at the time of joining a new job. It helps in facilitating the transfer of PF accumulations from the previous employer to the new employer.

   – Information Required: Employees need to provide details such as their name, date of birth, father’s/husband’s name, address, Aadhaar number, bank account details, previous employment details (if any), and nomination details for Provident Fund (PF) benefits.

   – Submission: Form 11 should be submitted by the employee to the new employer upon joining a new job. The employer then submits it to the EPFO along with other required documents for PF registration.

Form 9 (Employer Registration):

   – Purpose: Form 9 is a registration form to be filled by employers for registering under the EPFO scheme. It is used to provide details of the establishment, its employees, and other relevant information.

   – Information Required: Employers need to provide details such as the name and address of the establishment, its category (e.g., factory, company, establishment), date of establishment, nature of work, total number of employees, details of the authorized signatory, bank account details, etc.

   – Submission: After filling out Form 9, employers need to submit it along with other required documents to the concerned EPFO office for registration under the EPF scheme.

EPF Form 14

EPF Form 14 is the application for financing a Life Insurance Corporation (LIC) policy from the Provident Fund account. In other words, your LIC premium can be paid from your EPF account. The applicant has to fill this form, get it attested by the employer and submit it to the EPF Commissioner.

EPF Form 10D

EPF Form 10D has to be filled by a member for availing pension benefits. The member becomes eligible for a pension after completing 10 years of service in the formal sector. This form is filled by the pensioner at the time of retirement.

EPF Form 10C

EPF Form 10C is used for the withdrawal of pension corpus accumulated in the member’s EPS account. You can fill this form online (through the EPF Member Portal) as well as offline. It is worth noting here that the pension amount can be withdrawn only till the service period is less than 10 years. This form is also used for getting the EPS Scheme Certificate (which is used for transferring your EPS balance from one employer to another).

EPF Form 13

A member of EPFO has to fill Form 13 for transferring the old EPF account to the new PF account. However, this form has been incorporated in the Composite Claim Form where the account transfer can be applied directly at the time of switching the job.

EPF Form 20

EPF Form 20 is filled by nominees/heirs of a deceased member for the final settlement of the EPF account. In case the nominee is a minor/lunatic, the guardian has to fill the form on his behalf. The money can be remitted in the bank account of the beneficiary directly or through money order.

EPF Form 31

Form 31 of the Employees Provident Fund serves as an application for partial withdrawal of funds from the entire corpus that is reserved for retirement purposes. Such withdrawals can be availed for the purpose of acquiring loans, medical treatments, house renovations, education, etc. This article explores the form with respect to its facets, its usefulness to the employees, conditions for withdrawal and the filing requisites.

EPF Form 14

EPF Form 14 is the application for financing a Life Insurance Corporation (LIC) policy from the Provident Fund account. In other words, your LIC premium can be paid from your EPF account. The applicant has to fill this form, get it attested by the employer and submit it to the EPF Commissioner.

EPF Form 19

PF Form 19 has to be filled when a member wants to go for a final settlement of his/her PF account. It is only applicable to employees who do not have Universal Account Number (UAN). PF Form no 19 can be filed without a UAN, and the member will only have to mention his/her PF account number. This form will be used to claim a final settlement of the PF account or to avail pension withdrawal benefits.

EPF Form 20

EPF Form 20 is filled by nominees/heirs of a deceased member for the final settlement of the EPF account. In case the nominee is a minor/lunatic, the guardian has to fill the form on his behalf. The money can be remitted in the bank account of the beneficiary directly or through money order.

EPF Form 2

Form 2 is filled by a member for declaration and nomination for the EPF and EPS accounts. This form can be filled any number of times and mandatorily after the marriage of the employee. It can be filled both online (through the EPF Member Portal) and offline.

EPF Form 5(IF)

This form is filled under Employees’ Deposit Linked Insurance Scheme (EDLI), 1976 to claim insurance benefits after the death of the member while in service. In case the beneficiary is a minor, the guardian has to fill the form on his behalf. In order to claim the benefits, the form has to be attested by the employer. If it is not possible to get the attestation done by the employer, the form has to be attested by a gazetted officer.

EPF Form 15G

Form 15G has to be submitted by a member to save tax on the interest earned from EPF. It can also be submitted in case the member withdraws the EPF corpus before 5 years of service and the amount is more than ₹ 50,000. In case of senior citizens, Form 15H has to be furnished in place of Form 15G.

EPF Form 5 has to be filled by the employer to submit details of all new employees joining the organization who are eligible for EPF for the first time. This form has to be submitted by 15th of every month. In case there is no new joiner, the employer has to mention “NIL” in the form.

Form 10D: Used for claiming monthly pension under the Employees’ Pension Scheme (EPS) by the member after retirement. It’s filed under Section 6A of the EPS Act, 1995.

Form 10D (UAN): Similar to Form 10D, but applicable for employees with a Universal Account Number (UAN).

Form 14: To request for financing of insurance policy under the Employees’ Deposit Linked Insurance Scheme (EDLI) by the nominee/legal heir. Filed under Section 6C of the EDLI Scheme, 1976.

Form 31 (UAN): Similar to Form 31, but applicable for employees with a Universal Account Number (UAN). Used for partial withdrawals from the EPF account.

Form 10C (UAN): Similar to Form 10C, but applicable for employees with a Universal Account Number (UAN). Used for claiming withdrawal benefits under the Employee’s Pension Scheme (EPS).

Form 15G: Submitted by individuals to declare that their income is below the taxable limit and hence TDS (Tax Deducted at Source) should not be deducted on their EPF withdrawal. Filed under Section 197A(1C) of the Income Tax Act, 1961.

Form 15H: Similar to Form 15G but for senior citizens to declare that their income is below the taxable limit.

Form 11: Declaration form to be filled by an employee for provident fund membership when joining an organization. Filed under Para 82-A of the EPF Scheme, 1952.

Form 13 (UAN): Similar to Form 13, but applicable for employees with a Universal Account Number (UAN). Used for transferring PF funds from one account to another.

Form 6A: Monthly return of Employees qualifying for Membership under the Employees’ Provident Fund Scheme.

These forms cater to various requirements of employees and employers under the EPF Act, EPS Act, and other related schemes. It’s important to use the correct form as per the specific situation to ensure smooth processing of EPF-related transactions.

What is EPF Challan

EPF challan is required to make the PF contributions payments of the employee and employer. Every challan consists a unique TRRN number, which will help you to track the challan details.

EPF challan consists of total wages of employees and account numbers like A/C 1. A/C 2, A/C 10, A/C 21, and A/C 22.

PF Contribution Rate 2021 Five Types of Accounts:-

How to download PF Challan for previous years

To download PF challan login in employer PF portal → Go to payments → ECR Return Filing → Search Challan → Select Wage Month & Challan Type → Click on Search

( You can download all types of PF challans here, payment confirmed, payment failed, payment awaiting challans, rejected challans, and draft challans also.).

What is PF admin charges

PF admin charges are paid by the employer. Every employer will pay 0.5% of employees’ basic wage + DA as PF admin charges.

What is EDLI contribution

Every EPF member who is contributing to PF will become a member of EDLI. It means the Employee Deposit Linked Insurance Scheme. Employers will pay 0.5% of employee basic wage + DA as EDLI contribution.

How much EDLI admin charges in 2021

EDLI admin charges are waived off by the employer W.E.F 1 April 2017, now there is no need to pay EDLI admin charges, it is Nill.

EPF Contribution

EPF Contribution consists of two parts depending on the entity that makes the contribution – Employee’s contribution and Employer’s contribution.

The employee makes a contribution of 12% of basic salary + dearness allowance towards his EPF account. The employee has to make a lower 10% contribution in case the establishment has less than 20 employees or for industries such as (a) Jute (b) Beedi (c) Brick (d) Coir and (e) Guar gum Factories.

The employer makes a contribution of 8.33% towards the EPS (Employees’ Pension Scheme) account of the employee. Another 3.67% is added to the EPF account of the employee. The employer also makes 0.50% of contribution towards the EDLI (Employees’ Deposit Linked Insurance) account of the employee.

The employer has to pay an additional charge for administrative accounts at a rate of 0.50% with effect from 1st June 2018. The minimum administrative charge is ₹ 500 and if there is no contribution for a specific month, the employer has to pay a fee of ₹ 75 for that month.

How to Calculate Interest on EPF Balance

EPF interest is calculated every month but is deposited in the account at the end of the financial year. The following example explains the interest calculation on the EPF of the employee:

The following example explains:

1. The interest calculation on EPF of the employee or EPF interest rate calculation for a single employee 
2. The EPF Contributions by employee and employer

Example of calculation of interest for a financial year-

Basic Salary + Dearness Allowance = ₹ 15,000

• Employee’s contribution towards EPF = 12% of ₹ 15,000 = ₹ 1,800
• Employer’s contribution towards EPS = 8.33% of ₹ 15,000 = ₹ 1,250

Employer’s contribution towards EPF = Employee’s contribution – Employer’s contribution towards EPS = ₹ 550

• Total EPF contribution every month = ₹ 1,800 + ₹ 550 = ₹ 2,350

The EPF rate of interest 2022-2023 is 8.15%.

When calculating interest, the interest applicable per month is = 8.15%/12 = 0.679%

Assuming the employee joined service on 1st April 2022, contributions start for the financial year 2022 – 2023 from April

*The interest will be calculated every month but will be deposited only at the end of the financial year (on 31st March 2023 in this case)

EPF Interest Rate for Inactive Accounts

In FY 2011-12, the EPFO had suggested stopping paying interests to EPF account in which negligible or no contributions are made for more than 3 years. However, this decision has been rolled back in 2016. 

Consequently, even the accounts which are lying inactive for more than 3 years will be credited with interest earned according to the existing rates. Nonetheless, you will not earn interest if your account has become inoperative i.e. after the end of scheme tenure; when you have attained the age of 58 and haven’t withdrawn the EPF balance.