{"id":6133,"date":"2019-05-01T19:20:15","date_gmt":"2019-05-01T13:50:15","guid":{"rendered":"http:\/\/capitalante.com\/?p=6133"},"modified":"2019-05-01T19:16:52","modified_gmt":"2019-05-01T13:46:52","slug":"employees-provident-fund","status":"publish","type":"post","link":"https:\/\/capitalante.com\/employees-provident-fund\/","title":{"rendered":"Employees’ Provident Fund – Eligibility, Interest rate, Benefits"},"content":{"rendered":"

Apart from ensuring a stable income following the retirement, Employees\u2019 provident fund is one of the exempt-exempt-exempt category investment options along with public provident fund and National Pension Scheme. In this column, we will discuss what employees\u2019 provident fund is, eligibility, interest rate, calculation, what is UAN, how to check EPF balance, how to transfer EPF account from one employer to another, withdrawal options, tax implications, benefits, etc.<\/span><\/p>\n

What is the Employees\u2019 Provident Fund?<\/span><\/strong><\/h2>\n

In accordance with Employees\u2019 Provident Fund and Miscellaneous Act, 1952 an employees\u2019 fund has been initiated to secure regular cash flow to the employee following retirement or in the circumstances of discontinuing of working either temporarily or permanently due to accident or disease which leads to disability. Since the Employee Provident Fund in the EEE category, the contributions are made by an employee, the interest earned, and the money in the hands of the individual are completely tax-free.<\/span><\/p>\n

Eligibility<\/span><\/strong><\/h2>\n

Any organization with the employee strength more than 20 is liable to give EPF benefits to its employees. Both the employer and the employee are liable to make a contribution towards the employee provident fund. Usually, the employee contributes [12% of the basic pay + Dearness Allowance] this contribution must be made once in a month. The interest rates offered by the EPF are in accordance with the guidelines of the EPFO. The scheme is not applicable in the state of Jammu & Kashmir.<\/span><\/p>\n

What is an Employees\u2019 Provident Fund Account<\/span><\/strong><\/h2>\n

An EPF account is just like a bank account where your contributions, as well as interest, are credited. After the activation of your EPF account, your contribution to the EPF is credited every month and the interest on the invested amount in a financial year also credited. Any individual is free to check the EPF balance by mobile app or via SMS or via missed call facility.<\/span><\/p>\n

Where the contributions of employee and employer go to<\/span><\/strong><\/h2>\n

When you get the first salary, the employer deducts the [12% of the basic pay + Dearness Allowance] and contributes the same into your Employees Provident Fund account. The amount contributed by the employee directly goes to employees\u2019 provident fund account. But the employer\u2019s contributions are divided into 3 trusts in accordance with the EPF act of 1952, and they are \u2013<\/span><\/p>\n