The Employees Provident Fund Organisation [EPFO] is a body set up by law to assist the Central Board of Trustees in administering the EPF, EPS and EDLI schemes for people employed in the organised sector in India.
The employees have to contribute 12% of basic pay+dearness allowance+retaining allowance to EPF. If the number of employees in an organisation is 20 or more and the employees' pay is less than Rs 15,000, the employer contributes equally, but out of the employer's contribution, 8.33% goes to EPS and 3.67% goes to EPF.
If the employees' pay is Rs. 15,000 or more, the employer's contribution to EPS is Rs. 1250 at the most and the balance of 3.67% goes to EPF. If the number of employees in an organisation is less than 20, then the contribution rate for the employees and the employer is 10%. Employers contribute 0.5% of total wages towards EDLI, but not more than Rs 75 a month. Employees don't contribute to EDLI or EPS.
Employees Provident Fund Organisation [EPFO] Schemes Launched
Employees Provident Fund (EPF) Scheme 1952
- On retirement, the employees receive the entire amount of the contribution along with the interest
- The interest rates are declared by the Central Government every year, and interest on the provident fund account is calculated on the basis of the monthly running balance
- In case an employee dies before retirement, the family can claim the amount
- Partial withdrawals are allowed for education, marriage, illness and house construction
- Employees who have been unemployed for 2 months can withdraw the EPF amount fully
- If employees have been unemployed for one month, they can withdraw 75% of the provident fund and transfer the remaining 25% to a new EPF account after gaining new employment
Employees Pension Scheme (EPS) 1995
- This scheme provides pension to the members of Employees Provident Fund Organisation [EPFO] from the organised sector who have retired from work at the age of 58 provided they have worked for at least 10 years
- If a member is unable to work for ten years before reaching the age of 58, he can still withdraw the money at the age of 58. However, he will not receive monthly pension benefits after retirement
- An EPFO member who becomes totally and permanently incapacitated is entitled to a monthly pension even if he has not served during the pensionable service period. To be eligible for a pension, the employer should have deposited funds in the employee's EPS account for at least one month
- A member is qualified for a monthly pension from the day he becomes disabled. The amount is payable for the rest of his life
- In case a member dies during the service period and the employer has deposited funds in his EPS account for at least one month, the member's family is eligible for pension
- A member's family is also eligible for a pension in case he has completed 10 years of service but dies before reaching the age of 58
- If a member dies after the monthly pension begins, his family is definitely eligible for a pension
Employees Deposit Linked Insurance Scheme (EDLI) 1976
- This scheme provides insurance to salaried employees from the private sector
- All EPF members are directly enrolled in this scheme
- If an EPF member dies during the period of the service, the registered nominee receives a lump sum payment
- A maximum assured benefit of 7 lakhs is directly credited to the legal heir or nominee of the EPF member who dies during the period of service
- A minimum benefit of 2.5 lakhs is paid to the legal heir or nominee of the EPF member who was employed for a period of 12 months prior to his death
Employees Provident Fund Organisation [EPFO] - Organisation Structure
The EPFO Act and all schemes under it are administered by the Central Board of Trustees (EPF). The EPF is a Tri-partite board. Representatives of the government (State and Central), employers, and employees make up the EPF, and it is headed by the Ministry of Labour and Employment.
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Employees Provident Fund Organisation - EPFO UAN
Under this, account holders can view the passbooks of their EPF accounts that have been tagged with UAN. Also, if a member's authenticated Aadhar and bank details are seeded against their UAN, they will be allowed to submit their withdrawal or transfer or settlement claims online.
In a country like India where most people don't earn high wages, a non-constitutional body like Employees Provident Fund Organisation promotes employees to save funds for retirement so that people can live comfortably in their old age. The organisation was launched in 1951 and governed by the Ministry of Labour and Employment, Government of India is indeed a blessing for those who are banking heavily on pension, provident fund and deposit-linked insurance schemes to see them through tough times.
FAQs on Employees Provident Fund Organisation [EPFO]
Q1) When was the Employees Provident Fund Organisation [EPFO] launched?
Employees Provident Fund Organisation [EPFO] was launched in 1951
Q2) When was the EPF launched under Employees Provident Fund Organisation [EPFO]?
EPF was launched in 1952 under Employees Provident Fund Organisation [EPFO].
Q3) Keeping Employees Provident Fund Organisation [EPFO] in mind, when was the EPS launched?
With regards to the Employees Provident Fund Organisation [EPFO], the EPS was launched in 1995
Q4) When was the EDLI launched, in the context of the Employees Provident Fund Organisation [EPFO]?
With regards to the Employees Provident Fund Organisation [EPFO], the EDLI was launched in 1976
Q5) What is the full form of EPFO?
EPFO stands for Employees Provident Fund Organisation.