An Employee Provident Fund (EPF) worker provident fund is formed through the contributions made by worker and employer. Beneath EPF scheme, each of the worker and therefore the leader needs to ensure contributions on monthly basis towards the EPF scheme. You as a worker can get this cash at the time of your retirement or if you discontinue operating either quickly or due to any quite incapacity.
The EPF may be an exempted investment instrument for the salaried category having an Exempt-Exempt-Exempt status. The contributions created by the worker is eligible for tax deductions beneath Section 80C, the interest attained on the full investments and therefore the withdrawal (including partial withdrawals for specific expenses) are exempt from the horizon of taxation.
These contributions are created monthly, thereby encouraging workers to avoid wasting some of their earnings every month. Investments created by an enormous range of workers across India are pooled along and invested with by a trust.
The EPF is made by the Employee Provident Fund Organization (EPFO) of India, a statutory body of the Indian Government beneath the Labour and Employment Ministry.
It states that a corporation (irrespective of its structure) having twenty or additional permanent workers (across completely different departments and branches whether or not situated within the same location or otherwise), operating in any of one hundred eighty and industries, ought to compulsorily register with the EPFO.
What is fascinating to notice here is, the Act defines an “employee” as “any one that is utilized for wages in any quite work, manual or otherwise, in or in reference to the work of an institution and who gets his wages directly or indirectly from the leader, And includes anyone utilized by or through a contractor in or in reference to the work of the institution and engaged as an apprentice, not being an apprentice engaged beneath the Apprentices Act, 1961 (52 of 1961) or beneath the standing orders of the establishment”
Currently, the subsequent 3 schemes are operating beneath the EPF Act of 1952, and it's into these trusts that your monthly contributions go:
• Employees’ Provident Fund theme (EPF) (1952)
• Employees’ Deposit coupled Insurance theme (EDLI) (1976)
• Employees’ Pension theme (EPS) (1995)
EPF, EPS and EDLIS are calculated on the idea of your Basic + costliness Allowance (DA) (including money worth of any food concession allowed to the employee) + retentive Allowance (RA) if any. (Retaining Allowance means that allowance collectable for the nonce to a worker of any mill or alternative institution throughout any amount during which the institution isn't operating, for retentive his services.) which will assist you to extend EPF contribution each year.
UAN stands for Universal Account Number is a distinctive 12-digit number for all people listed beneath the EPF theme. The simplest half is, UAN may be a distinctive number appointed to every worker and remains permanent even after you switch your employment.
UAN will be generated by work in to the EPFO web site. Once you've got registered your UAN, you may receive details like EPF balance and alternative such info on your mobile via SMS.
The members may also activate their UAN account by causation of a SMS to 07738299899 from the comfort of their mobile phones which might alter them to avail all UAN connected facilities. The format of the SMS is: EPFOHOLAN.
Here, LAN stands for the primary 3 character of the well-liked language during which the member wishes to urge the small print.
This facility is obtainable in 10 completely different languages specifically English, Hindi, Punjabi, Gujarati, Marathi, Kannada, Telugu, Tamil, South Dravidian and Bengali.
An incomprehensible decision service has been launched for those members who have activated their UAN. Such members will provides an incomprehensible decision to 011-22901406 to fetch the small print concerning their accounts.
The Employees’ Provident Fund Organization (EPFO) in Jan 2017 created it obligatory for its pensioners and subscribers to submit their Aadhaar numbers. The point had been revised time and once more visible of the slow progress over the UID number submission by members. The new point is about as June thirty, 2017. The vital advantage of linking Aadhaar with the provident fund distinctive Account range (UAN) is that it will increase transparency and makes the verification method easier.
Before linking your Aadhaar card, you would like to activate your UAN. Once done, you'll update your UID Number on-line through the method printed below:
1. Visit - https://unifiedportal-mem.epfindia.gov.in/memberinterface
2. Login along with your UAN and Arcanum
3. Beneath the ‘Manage’ tab, choose ‘KYC’
4. Under this, you've got the choice to update details of many identification proofs, together with Aadhaar
5. Enter your Aadhaar range and name as per Aadhaar and click on “Save’
Your Aadhaar ought to get coupled among a few of weeks if all personal details match.