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Employees Provident Fund
Broadly we may categorise the benefits into three:
- Provident Fund benefits
- Employer also contributes to Members PF @ 3.67% (1.67% in case of sick industry
- eg: beedi)
- EPFO guarantees the Employer contribution and Govt. gives a decent interest to
PF accumulations
- Member can withdraw from this accumulations to cater financial exigencies in life - No
need to refund unless misused
- On resignation, the member can settle the account. i.e., the member gets his PF
contribution, Employer Contribution and Interest.
- Pension Benefits
- Pension to Member
- Pension to Family(on death
of member)
- 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 atleast 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)
- 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 @1.16% respectively
- EPFO guarantees pension to members, even if the Employer has not contributed
to Pension Fund.
- Pension calculation is similarto that of Govt.
Employee.
- Death Benefits
- Provident Fund Amount to Family (or to Nominee)
- Pension to Family(or to arent / Nominee)
- Capital Return of Pension
- Insurance (EDLI) amount to Family (or to Nominee)
- No amount is taken from Member for this facility. Employer contributes for this.
- Nominee is basically determined as per the information submitted by the member
at this office through FORM-2
How to become a EPF Member
You, as your own, can not become an EPF Member. To become an EPF member, you
have to work in an establishment which is covered under EPF and MP ACT,
1952.
If 20 or more employees are working in an establishment, EPFO will cover that
establishment.
If Employer and Employees of an establishment desires, that establishment can
volunterly opt for EPF coverage
If your establishment is not covered and atleast 20 employees are working in
that establishment, you can approach EPFO to cover it.
How to withdraw money from EPF
To withdraw money from EPF Account, you have to either:
resign or retire from the establishment and apply for settlement of PF in
Form-19
apply for advance for some admissible purposes
How to get Pension
- If you have attained the age of 50 years or more and
- If you have completed a total service of 10 years or more and
- If you are not getting any other EPF Pension
Then you have to apply in Form-10D at the EPF Office where you last worked
through your last employer.
If you want to draw pension from a different Place, you have to furnish
appropriate Bank address/agency Address in the application form. Based on this
address, your pension will be transferred to nearest EPF Office so that you get
pension from the branch of Bank/Agency you desired.
Click to see the EPF Pension distributing Banks/AgenciesFour situations When
Pension can be applied for :
1. On superannuation
- Age 58 years or More and
- atleast ten years of service
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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
- atleast ten years of service
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The member should not be in service |
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3. Death of the member |
Death while in service or
Death while not in service |
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4. Permanent disability |
Permanently and totally unfit for the employment which the member was doing at
the time of such disablement |
- No pensioner can receive more than one EPF Pension.
How to settle EPF account
You have 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 my account / What to do if I join another establishment
You have to apply in From-13 through the NEW Employer at the EPF
Office from which transfer is saught clearly stating New and Old EPF
Numbers. You have to obtain new EPF Number from your New Employer. New EPF
Number will be allotted by New Employer, not by EPFO
Empoyees Deposit Linked Insurance(EDLI) Scheme
On death of a member, 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 member had to keep the required minimum amount in
the EPF account (Rs.1,000/-) to avail this facility The nominee(s) have to apply
in From-5IF through the Employer. No amount is taken from Member for this
facility. Employer contributes for this. Average PF Balance, salary and service
are the factors considered for the calculation of this amount
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