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September 13, 2020

164 FAQ’s on Employees’ Provident Fund

by shivam jaiswal in Compliance Law

164 FAQ’s on Employees’ Provident Fund

1. Whether an employer can deduct employer’s share of contribution from the wages of employees?

Answer: No. It is not permissible. Any such deduction is a criminal offence.

2. Can the wages be reduced by the employer on account of payment to the EPF?

Answer: No. It is specifically barred under section-12 of the EPF & MP Act,1952.

3. Whether a daily rated employee or the piece rated employee can become a member of the EPF?

Answer: Yes.

4. If an employee is paid wages on daily basis or on piece rate basis how the contribution is determined?

Answer: The wages paid in a calendar month will be taken to determine the contribution due.

5. Whether the member is entitled for full interest on the belated deposit of PF dues by the employer?

Answer: After realising the dues, the PF members will be given full interest for each due month and it will in no way affect the interest due to members on the contributions paid. The employer shall be charged penal interest under section 7Q and penal damages under section 14B of the Act respectively.

6. An employee is paid subsistence allowance during the period of his suspension. Whether PF contribution is payable on this?

Answer: No.

7. Can an employee contribute to the EPF after leaving the service?

Answer: No. In the absence of wages & Employer no recovery can be affected. Any contribution by the member must be matched with employer’s share of contribution.

8. The contribution has been recovered from the wages of the employee but the employer had not paid to the EPF. What is the remedy?

Answer: The Employees’ PF Organization will invoke penal provisions of the Act to recover the dues from the employer. Complaint can be lodged with Police under section-406/409 of IPC by the EPFO for action against such employers.

9. What will be the effect of non-payment of PF dues by an employer? Or how a member is affected for non-payment of EPF dues by the employer?

Answer: The Provident Fund amount due to the member will be paid only to the extent of the amount realised from the employer.

10. Whether an employer can recover any outstanding dues from the PF amount payable to a member?

Answer: No. It is totally prohibited.

11. What are the measures by which the PF amount is recovered from a defaulting employer?

Answer: Attachment of Bank Accounts, Realisation of dues from Debtors, Attachment & Sale of properties, Arrest and Detention of the Employer, Action under Section 406/409 of Indian Penal Code and Section 110 of Criminal Procedure Code, Prosecution under section 14 of the EPF & MP Act,1952.

12. How a member is informed about the non-payment of contributions recovered from the wages of the employee but not paid to the EPF?

Answer: The Annual P.F. Statement of Account/Member Passbook will indicate the amount paid by the employer. The default period in a year is thus made known to the members. In the current scenario if the member has activated her/his UAN the non-payment/payment of contributions can be verified every month through the e-passbook. Currently, members also receive sms on their registered mobile phones on credit of monthly contribution into their PF account.

13. Whether the P.F. amount credited to the member can be attached against any liability?

Answer: No. The Provident Fund enjoys protection against attachment by any Court also as per the provisions of section 10 of the EPF & MP Act,1952.

14. When an employer becomes insolvent or when a company is wound up, whether the contributions will be paid in priority over other debts?

Answer: Yes.

15. When wages are not collected by the member whether the PF can be deducted or not?

Answer: The employer, before paying the member his wages, is required to deduct the PF contribution from his wages and pay to the Regional PF Commissioner. As such PF can be deducted.

16. Can a member pay contribution in excess of the statutory rate of 12%?

Answer: Yes. The member can pay voluntary contribution in excess of his normal contribution of 12% of Rs.15000/-. The total contribution i.e., voluntary + mandatory can be up to Rs.15000/- per month. (The employer may restrict his own share to the statutory rate). The member can also contribute on higher wages i.e., >15000/- after getting permission from APFC/RPFC as per the provisions of para-26(6) of the Scheme.

17. Can a member demand for showing the recovery of contributions from the employer?

Answer: Yes. The contribution card of each member in Form 3-A/ECR copy can be demanded from the employer.

18. How the contract employees are protected and given their P.F. when the contractor is not paying the dues to the principal employer?

Answer: It is the duty of the principal employer to ensure that the Contractor discharges his liability. The Principal Employer must allow payment of bills after ensuring that the Contractor has enrolled and complied in respect of all eligible contract employees every month. The Principle Employer can check the remittance and employee name by using the Establishment Search option available in our website http://www.epfindia.gov.in. The path is OUR SERVICES >> For Employers >> Important Links >> Establishment Search (Also view Remittances and member name). If the Principal Employer ensures that all contract employees activate their Universal Account Number (UAN), then any default by the contractor can be nipped in the bud.

19. Can a member refuse to part with the payment of contribution to the Pension Fund?

Answer: The Pension contribution is only a diversion from the employer’s share of Provident Fund. Hence no consent is required from the member and refusal does not arise.

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20. Whether an employer can stop paying Employees’ Provident Fund contribution in respect of a member who had attained the age of 55 or 60?

Answer: No. The Employees’ Provident Fund Contribution should be paid till the date of his leaving the service, irrespective of the age of the member. Employees who ceases to be EPS(pension) member will get Employers 8.33% contribution in PF.

21. In case the PF amount is not settled within 20 days to whom the matter is to be reported?

Answer: He can approach the Regional P.F. Commissioner in charge of grievances; file a complaint on the website using the EPFiGMS feature in the section ‘FOR EMPLOYEES’. The url for the grievance page is http://epfigms.gov.in/ or he can appear before the Commissioner in the ‘Nidhi Apke Nikat’ program being conducted on 10th of every month.

22. Is there any time limit for withdrawal of Provident Fund dues?

Answer: Only in the case of resignation from service (not superannuation) a member has to wait for a period of two months for withdrawal of the PF amount.

23. When the employer is not attesting the claim form how to submit the application for withdrawal of provident fund?

Answer: It is the duty of the employer to attest the application form. In case of any dispute, the member may attain attestation preferably from the bank in which he has maintained his account and thereafter submit the same to Regional PF Commissioner, explaining the reasons for not obtaining the signature of the employer. The Regional P.F. Commissioner will pursue the matter with the employer wherever necessary. If the member has activated his Universal Account Number and linked his bank account and Aadhaar then he can submit composite claim (Aadhaar) which only requires the signature of the member.

24. In case of change in employment whether a member can get his PF account transferred?

Answer: On change in employment, the member should necessarily get his PF account transferred to his present establishment, duly submitting Form 13(R). A member can submit claim for transfer online using member interface at unified portal.

25. If past accumulations are not transferred on cancellation of exemption, how the provident fund amount is paid to the members?

Answer: The local RPFC will ensure transfer of securities/cash and arrange for refund of dues to the members.

26. How is a PF member informed of the transfer affected?

Answer: A copy of Transfer Certificate (Annexure-K) issued to the transferee Regional P.F. Commissioner/P.F. Trust giving full details of the transfer can be requested from the EPF office.

27. What is the method of crediting interest to the P.F. subscribers?

Answer: The compound interest is credited on monthly running balance basis at the statutory rate declared for each year. For 2016-17 the interest declared is 8.65%.

28. Whether provident fund provides for any refundable loan for Housing etc.?

Answer: No. But, non-refundable loans for housing are available.

29. I am an employee working in an establishment to which the PF Act is not applicable. Can I become a member of the EPF?

Answer: An employee can become a member only after the application of the Act to the establishment.

30. If an employee is not given the PF membership, to whom he can approach?

Answer: He can approach his employer failing which he can approach the Regional Provident Fund Commissioner of the nearest PF office.

31. Whether the employee working in a Branch Unit of an establishment located outside the state is eligible to become a member of the EPF?

Answer: The Act is applicable to an establishment as a whole. Hence, its employees, irrespective of their place of work or location, are eligible to become member of the Fund.

32. If an employee is working in more than one establishment how his membership is regulated?

Answer: His membership is reckoned separately for each establishment. (Under different Provident Fund Account Numbers/ member Ids)

33. Can an employee become a member of EPF without any age restriction?

Answer: There is no age restriction for becoming a member of the Provident Fund, whereas an employee who has already attained the age of 58 cannot become a member of the Pension Fund.

34. Whether an employee can become a member of the EPF without any restriction to his salary/wages?

Answer: The employees who are drawing the basic wages and dearness allowance up to Rs.15, 000/- are alone eligible to become a member. He will continue to be a member even when his pay exceeds Rs.15, 000/-. However, his contribution to the Fund will be restricted to Rs.15, 000/-. The employer is also required to pay his matching contribution up to Rs.15, 000/-. Employees drawing more than Rs.15000/- can also become a member of EPF by giving option under para 26(6) of the EPF Scheme. The option has to be submitted to the EPF office within 6 months of joining of such member.

35. Whether an apprentice can become a member of the EPF?

Answer: No. But, when he ceases to be an apprentice he should be enrolled immediately.

36. If an employee is drawing more than Rs. 15000/- (Basic + DA only) is he required to become a member of the EPF?

Answer: Such employee is not required to become a member, if he is not already holding the PF membership. Otherwise, if both the employer and employee are willing, he can become a member by giving option under Para-26 (6) of the PF Scheme. The option has to be submitted to the EPF office within 6 months of joining of such member.

37. If an employee is transferred from one establishment to another establishment whether he is required to be enrolled as a member once again?

Answer: He is required to be enrolled as a member under the new establishment, for transferring his Provident Fund from his previous account.

38. If a person is working in an establishment without receiving any wages whether he can be given the PF membership?

Answer: Membership is allowed only where the wages are payable to an employee.

39. Whether an employee can become a member of the Pension Scheme only, without contributing to the PF?

Answer: No. By virtue of membership of Provident Fund only one can become a member of the Pension Scheme. From 01/09/2014 any new employee joining an establishment and drawing basic wage more than Rs.15000/- per month can only become a member of the PF after submitting option as per the provisions of Para 26(6) of the EPF Scheme. However, he can not get the membership to the Pension Fund. Both employee share of 12% and employer share of 12% contribution shall be paid into the Provident Fund only for all such employees.

40. Whether an employee can continue as a PF member even after his retirement?

Answer: Yes. If one continues to work even after attaining the superannuation age.

41. Is there any option available to an employee whether to become a member of the EPF or not?

Answer: No option.

42. Whether an EPF member can discontinue his membership, while in employment?

Answer: Not permissible.

43. Where an establishment is having its own recognized private PF Trust whether an employee can be allowed to continue in the private PF without joining the EPF?

Answer: Employee can be allowed to join the private PF Trust but the Trust has to take exemption from the EPF Scheme. He will however continue to be governed by the Pension and EDLI Schemes. All private trusts must obtain exemption from EPFO to enjoy Income Tax benefits.

44. How long an employee can continue his EPF membership?

Answer:  There is no restriction of period for membership. Even after leaving the establishment a person can continue his membership. However, if no contribution is received into a PF account for 3 consecutive years the account shall not earn any interest after 3 years from the stopping of contribution.

45. How the period of non-employment between two spells of employment is treated under EPF?

Answer: Non employment period is not affecting the EPF but affects the calculation of service to decide the quantum of benefit under the Employees’ Pension Scheme.

46. What will happen for the EPF membership of an employee during the period of closure, lock-out, strike etc.?

Answer: During such period the membership will continue and in the absence of wages no recovery of contribution will be made.

47. Whether an employer can also join the PF?

Answer: No.

48. Whether an employee can continue his EPF membership after leaving the employment?

Answer: Yes.

49. Whether any employee can join the EPF directly?

Answer: No. It is only by way of employment in an establishment covered under the provisions of the EPF & MP Act, 1952.

50. A Security Guard is working for different establishments; under whom he is required to secure membership?

Answer: If the employer of the Security Guard has been brought under the Act, the membership will be given through the employer, irrespective of his place of work.

51. If the establishment is not employing 20 persons, whether an employee can join the EPF?

Answer: Yes. The majority of employees and the employer can voluntarily opt for joining the Scheme as per provisions of Section-1(4) of the Act (Voluntary Coverage).

52. What other benefits are accrued on joining the EPF?

Answer: On joining the EPF, the member is provided the benefits under Pension (restricted to employees with Rs.15000/- or less monthly wage) and Employees’ Deposit Linked Insurance Scheme.

53. Whether an employee already drawing Pension under EPS, 1995 is required to join the PF and Pension Fund?

Answer: He is required to join only the PF and he cannot become a member of the Pension Scheme.

54. An employee who joins an establishment at the age of 58 is eligible to become a member of the Pension Fund?

Answer: No.

55. How long a member can retain his Provident Fund in his account?

Answer: The membership can be retained till the withdrawal of his Provident Fund dues. However, if the account does not receives any contributions for more than 3 years interest won’t be credited to the account after the 3rd year.

56. In the absence of nomination, how the P.F. amount of a deceased member is paid?

Answer: It is payable to the family members in equal shares, under Para 70 (ii) of EPF Scheme, 1952. If there is no eligible family member, it is payable to the person(s) who are legally entitled to it.

57. What is the need for giving nomination for pension?

Answer: On the death of a Pension member (before receiving the pension), if there is no eligible family member, pension is payable to the nominee.

58. In the absence of valid nomination and no family to whom the Pension amount is payable?

Answer: Payable to the dependant parents, (dependant father followed by dependant mother).

59. Whether an unmarried person can nominate somebody from outside?

Answer: Yes. But, on acquiring a ‘Family’ the nomination is treated as invalid and the benefits shall be paid to the spouse and children if any.

60. Whether an employee who has not opted for the earlier Family Pension Scheme, 1971 can join the Pension Scheme?

Answer: Yes.

61. What is the formula for calculating the Pension amount?

Answer: Pension=(Pensionable Salary (average of last 60 months) X Pensionable Service)/70.
Pensionable Service is the period for which contributions have been received.

62. What is the quantum of pension a member can get on his superannuation?

Answer: A member who joins the Employees’ Pension Scheme 1995 at the age of 23 and superannuates at the age of 58, and contributing to the (present) wage ceiling of Rs.15000/- may get about Rs.7500/- as pension if service is 35 years.
(Pensionable Salary X Pensionable Service)/70 = (15000×35)/70 = 7500

63. How the average salary is determined for granting pension?

Answer: The average salary is determined only for giving the pension to member. It is the average of last 60 months. (Non-contributory period, if any, is reduced)

64. What are the advantages of taking a Scheme Certificate?

Answer: 1) It facilitates transfer of Pension Accounts when the employment is changed. 2) If the Holder of Scheme Certificate dies the family will get family pension. 3) It is like a Policy for Pension without paying the premium.

65. In case of death of a member, who was an Ex-serviceman whether family pension is payable or not?

Answer: Family pension is payable i.e. in addition to the Military Pension, i.e. family pension under Rule 54 of the CCS (Pension) Rules, 1972. (Effective from 27-07-2001 only)

66. Can a member seek exemption from the Pension Scheme?

Answer: Individual member cannot seek exemption from the Pension Scheme. Only an establishment can seek exemption.

67. At what age a member is eligible for pension?

Answer: A member is eligible for pension on superannuation at the age of 58 years. If a member leaves employment between 50 and 57 years he can avail the early (reduced) pension.

68. What is the service required for giving pension in case of death of the member?

Answer: The minimum service of 10 contributory years is only for payment of pension to a member. It is not applicable, where a member dies. In case of death of a member, The family pension and child pension is payable even after receiving one month’s contribution (including part of the month) for Pension Fund.

69. If a member dies to whom the pension is payable?

Answer: On death of the member the Pension is automatically payable to the spouse (Widow/Widower). In addition, the children are also eligible till attainment of 25 years of age (2 at a time). Any disabled child in the family shall get disabled pension for life apart from the two child pensions.

70. In case the employer has failed to pay the pension contribution whether any pension is payable or not?

Answer: Non-payment of pension contribution by an employer will not affect the grant of Pension. Pension is guaranteed.

71. Can a pensioner get pension anywhere in the country?

Answer: Yes.

72. How the pension of a member who works for different establishment is determined?

Answer: The wages and the service of the member are consolidated to determine the Pension.

73. Is there any increase in the pension amount every year?

Answer: There is a provision for valuation of the pension fund and review of the rates of contributions and quantum of the pension and other benefits in para 32 of the Employees’ Pension Scheme, 1995.

74. When a member avails reduced pension at the age of 50 can he get his full pension on attaining 58 years?

Answer: No. Once Pension is sanctioned it cannot be altered.

75. What are the criteria for determining the date of eligibility for early pension (Before 58) ?

Answer: The member is required to indicate his option regarding the date from which he requires early pension in the application form. If no date is given in the claim form then the date of application shall be taken as the opted date.

76. Can a member avail pension even while he is in service?

Answer: The member who continues in service even after 58 years can avail the Pension from the age of 58. If a pensioner, who has availed the early pension, may take up employment thereafter and in such cases he will not be eligible to join the Pension Scheme. And the 8.33% contribution from Employer side will go towards EPF fund.

77. Can I surrender or sell my full pension for getting a lump sum payment?

Answer: No.

78. Is it compulsory to withdraw the pension benefit along with the P.F. amount?

Answer: No. A member can withdraw his PF amount (member share only) and maintain a lien in the Pension Scheme by availing a Scheme Certificate.

79. Can I change my Date of Birth/Age?

Answer: Yes. Date of Birth/Age once given is not normally changed, however it can be changed with proper documentary evidence. A copy of the circular dated 02/12/2013 in this regard is available on our website. The path is OUR SERVICES >> For Employers >> Downloads >> Process for Change in Name & Basic Details of Members. A joint request has to be submitted by the employee and employer to the concerned EPF office along with documents like Aadhaar, PAN etc.

80. Can a married daughter be excluded from receiving the family pension?

Answer: The marital status has no relevance if the children are below 25 years; they are eligible for family pension in the event of demise of the member.

81. If a member is having two wives to whom the family pension is payable?

Answer: If the second marriage is legally valid, it is payable to the eldest with reference to the date of marriage and on her death, payable to the next surviving widow.

82. In the absence of family member whether a pensioner can nominate any other person to receive family pension?

Answer: No. In the absence of family member on the date of the death of the member (before eligibility for member pension), the family pension is payable to nominee and in the absence of a valid nomination it is payable to depandent father followed by dependant mother. Once the pension is received by the member there is no validity for nomination. A pensioner cannot nominate any person.

83. What will be the effect of unemployment period under the Pension Scheme?

Answer: The unemployment period will be excluded from the actual service. Pension is based on contributory service only.

84. Is it possible to exclude my spouse from receiving the family pension?

Answer: No. The spouse is an automatic beneficiary unless he/she is legally divorced. However, a lady can keep her husband out from her family and deny him family pension by submitting a request in this regard in writing to the Commissioner.

85. In the absence of family members (family here means the family procreated by the member and not the family in which he/she was born) and nominee, to whom the pension is payable?

Answer: It is payable to the dependant parents.

86. Who is eligible for disablement pension?

Answer: Any Pension member irrespective of age and service who is declared as disabled (with 100% disability with respect to employability) certified by the designated Hospital and where the member had left service only on account of his disablement is eligible for disablement pension.

87. Why a pensioner’s widow gets lesser pension when compared to non-pensioner’s widow?

Answer: The pension and family pension under Employees’ Pension Scheme, 1995 are the Social Security benefits. It is viewed as a need based benefit. It is not related to the quantum of contribution paid by a member. A pensioner after attaining the age of 58 years is to take care of his spouse and in his absence the liability is restricted to one person. Hence 50% of the pension is payable. Whereas in the case of a member (non-pensioner) who dies leaving behind his spouse, children who are yet to complete their education, marriage etc. and also considering the pre-mature death of a member the quantum of pension payable to non-pensioner’s widow is on the higher side.

88. Whether family pension is payable to a widow who was married to a pensioner? (After his superannuation)

Answer: The widow of a pensioner is eligible for family pension (irrespective of the date of marriage whether prior to his superannuation or thereafter)

89. In case the widow or widower remarries, to whom the family pension is payable?

Answer: The pension payable to the widow/widower will be stopped and thereafter the children pension will be converted to orphan pension (75% of the widow pension).

90. What is the period up to which pension is payable to the widow or widower?

Answer: Pension is paid till the remarriage of the widow/widower or till death.

91. When a member is having children through his first and second wife, how the eligibility for children pension is determined?

Answer: The children of both first and second wife should be arranged in the order of their date of birth and then the children pension is allowed to the eldest two children but below 25 years of age.

92. Is it necessary to open a separate bank account to draw the child pension?

Answer: Yes.

93. Can the widow and children draw pension in different places/banks?

Answer: No. The pension should be drawn by widow and children in the same bank and branch.

94. Who is eligible to get a Scheme Certificate?

Answer: A member whose service is 10 years or more and not attained the age of 58 years will be mandatorily issued scheme certificate. A member whose service is less than 10 years can avail the Scheme Certificate to carry forward his pension service but it is not mandatory.

95. Whether a member/family member can avail more than one pension for one service under the Employees’ Pension Scheme, 1995?

Answer: No.

96. When and to whom the pensioner is to give a life and non-remarriage certificate?

Answer: All pensioners drawing pension under Employees’ Pension Scheme, 1995 are required to give a Life/Non-Remarriage Certificate, duly attested by the Bank Manager/Gazetted Officer in the month of November each year. To be submitted to the Bank through which the pension is being paid. Failure to submit will result in stoppage of pension from the month of January. Currently, digital life certificate has been introduced from 2015-16. Pensioners can use their Aadhaar number to obtain the DLC. The facility is available in banks as well as PF offices.

97. Whether a Scheme Certificate holder with a service period of 8 years can avail the withdrawal benefit on surrender of Scheme Certificate?

Answer: No. Only on attaining 58 years he can surrender either to avail the Pension (if eligible) or withdrawal benefit.

98. Whether the Orphan Children are eligible for double Orphan Pension where both the parents were making contributions under Employees’ Pension Scheme, 1995?

Answer: Yes. The benefit under the Pension Scheme is a direct consequence of the contributions paid by the member of EPS, 1995; hence, if both parents were members and have contributed independently to the said Scheme, the Orphan will be eligible to two pensions separately. The normal ceiling as provided for in the Employees’ Pension Scheme shall however, continue to apply.

99. Whether Withdrawal Benefit will be payable to a member in case of defaulting establishment?

Answer: In respect of an establishment defaulting in remitting contribution to the Employees’ Pension Fund 1995 for any period, withdrawal benefit will not be paid to the member in respect of the default period. The member is entitled to withdrawal benefits only in respect of the period for which the contributions are received.

100. Whether member can delay the pension beyond 58 years?

Answer: Yes, the member has option to delay the pension beyond 58 years: 1) Member can opt for receiving pension after attaining 59 or 60 years of age but pension contribution stops after 58 years. In this scenario quantum of pension is increase by 4% per year beyond 58 years. 2) Member can opt for receiving pension after attaining 59 or 60 years of age but pension contribution continues after 58 years. In such a scenario the quantum of pension shall be higher than the first case cited above.

101. Whether Assurance benefit under EDLI Scheme is payable for death occurring after leaving the service?

Answer: No. Admissible only in case of death while in service.

102. To whom the EDLI benefit is payable?

Answer: EDLI benefit is payable to the persons eligible to receive the EPF dues.

103. Whether Assurance Benefit is payable to missing EPF member?

Answer: Payment of Assurance Benefit under EDLI Scheme 1976 is only available on the member’s death while in service to the nominees/legal heirs.

104. What is the maximum quantum of Assurance benefit?

Answer: Currently, the maximum assurance benefit is Rs.600,000/-.

105. Can a member withdraw the entire amount through money order?

Answer: No.

106. Whether pension can be paid by money order or cheque?

Answer: Pension is payable through the designated banks notified for each region through CBS.

107. What is the Universal Account Number?

Answer: Universal Account Number (UAN) is a 12 digit number allotted to each subscriber by linking it to the member’s currently active PF account number (from 31/07/2014 to 30/11/2016). From 12/2016 any new member has to be allotted a Universal Account Number linked to the establishment’s code number.

108. Who allots the Universal Account Number?

Answer: The number is allotted by EPFO on the request of the Employer and populated in the Employer’s login in the unified portal http://www.unifiedportal-emp.epfindia.gov.in. The UAN can also be generated by any individual using his/her aadhaar if his UAN is not already generated.

109. What are the advantages of having a UAN?

Answer: Once the member has activated his/her UAN on the unified portal he can enjoy the following benefits: Download/Print your Updated Passbook anytime. Download/ Print your UAN Card. List all your Member IDs to UAN. File online transfer claim on OTCP Update your KYC information.

110. How can I know the status of my UAN?

Answer: The facility is available in the unified portal at https://unifiedportal-mem.epfindia.gov.in.

111. How can I know the balance in my PF account?

Answer: Please activate your UAN and check/download your passbook.

112. How can I know the status of my application for PF settlement, advance or transfer submitted to the EPF office?

Answer: Please use the url https://passbook.epfindia.gov.in/MemClaimStatusUAN/ for checking your claim status.

113. Whether a PF member can submit claims for settlement without attestation of the Employer?

Answer: Currently the member can submit 3 types of claims without attestation of Employer namely, Form-19, 10C and 31. However, the member must ensure that his UAN is activated and at least the bank account and Aadhaar KYC’s in respect of his account are approved by the Employer using his Digital Signature Certificate.

114. What is the Composite Claim Form?

Answer: EPFO has launched a consolidation of the settlement claim forms. Accordingly one composite claim form (Aadhaar & Non Aadhaar) has been issued to replace the existing claim forms no.19, 10C and 31 and UAN forms no.19, 10C & 31. Another composite form replaces the existing Form no.20, 10D & 5-IF.

115. I want to know more about Employees’ Provident Fund Organisation.

Answer: Please visit EPFO Website: http://www.epfindia.gov.in

116. Who can be member of EPFO?

Answer: A person who is employed for wages in any kind of work, manual or otherwise, in or in, connection with the work of a establishment covered under the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952, and who gets his wages directly or indirectly from the employer, and includes any person employed by or through a contractor in or in connection with the work of the establishment.

116. Who can be member of EPFO?

Answer: A person who is employed for wages in any kind of work, manual or otherwise, in or in, connection with the work of a establishment covered under the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952, and who gets his wages directly or indirectly from the employer, and includes any person employed by or through a contractor in or in connection with the work of the establishment.

117. Who can be a member?

Answer: An employee of a covered establishment, if not excluded, is compulsorily a member of the employees’ Provident Funds Scheme. The employer of the establishment himself makes the employee a member by following prescribed procedure. An excluded employee is an employee whose pay at the time of being a member exceeds Rs. 15,000/- per month

118. Can a member contribute at a higher rate (above 12%) on voluntary basis?

Answer: Yes

119. What is contribution rate payable for a member?

Answer: At present, an employee contributes 12% of the Basic wages + Dearness allowance + Retaining allowance in EPF. The employer also pays 12% of pay out of which 8.33% of pay is diverted to Pension Fund and the rest 3.67% is diverted to EPF.

120. Does a member contribute to employees’ Pension Scheme and employees’ Deposit-Linked Insurance Fund Scheme (EDLI)?

Answer: No. The employer pays 12% out of which 8.33% is diverted to Pension Fund. An employer also pays 0.5% of Pay in EDLI Scheme.

121. What are benefits available to EPF members?

Answer:

A. Advances: A member can take non-refundable advances during service period for various purposes:-

  • Treatment of illnesses of self/family: TB, leprosy, paralysis, cancer, mental derangement heart ailment or major surgical operation
  • Marriage of self, daughter, son, brother & sister.
  • Post-matriculation education of son/daughter
  • Withdrawal for purchase of house, flat, dwelling house, addition/alteration of house and repayment of loan for the purpose.

B. Withdrawal within one year before retirement: Upto 90% of total PF balance.

C. Advance on unemployment:

  • Upto 75% of total PF balance.
  • Other purposes (for details please see table below)

D. Final settlement:

  • On retirement or two months after ceasing to be an employee.
  • Pension after retirement subject to the eligibility
  • Insurance in case of death while in service.

122. What are the different types of non-refundable advances?

Answer:

S.N.Para of EPF Scheme 1952PurposeEligibilityAmount admissible
1.62Financingof Member’sLife Insurance PoliciesA policy in the name of the member.
Policyshouldbe legally assigned to CBT (EPF).
Employees’ share should have sufficient balance to pay the premium.
2.68-B, 68-BC,68- BDPurchaseof House/flat, including acquisition of land.Five years membership of the Fund. Employees’shareis more than Rs 1,000/-Twenty four months wages & DA or total balance in PF account(Employees’ +Employer) or total cost, whichever is less. After five years another part withdrawal equal to 12 months wages & DA or employees’ share for addition/alteration. After ten years from the original sanction, another part withdrawal equal to 12 months wages & DA or employees’ share for addition/alteration.
3.68-BBRepayment of housing loan.Loan should have been taken from notified agencies. 10 years membership of Fund. employees’ share in PF account should be more than Rs 1,000/-Thirty six months wages & DA or total balance in PF account (employees’ + employer share) or total outstanding loan & interest thereon, whichever is less
4.68-BCPurchaseof House/flat, including acquisition of land.Five years membership of the Fund. employees’shareis more than Rs 25,000/-Total balance in PF account officememberorcostof acquisition,whicheveris less.
5.68-BDPurchaseof House/flat, including acquisition of land.Threeyears membershipofthe Fund. Member of a registered Cooperative Society.90% of PF accumulation (both shares) or cost payable, whichever is less.
Employees’shareis more than Rs 25,000/-
S.N.Para of EPF Scheme 1952PurposeEligibility                                         Amount admissible
1.68-HIfestablishment / factory is closed/locked downEmployee receives no compensation or has not got wages for two months or more.Upto 100% of employees’ share.
2.68HHIf the employee remains unemployed for more than one monthUnemployment should be more than one monthUpto75%oftotalPF balance.
3.68-JIllnessof self and familyHospitalization for more than one month, major illnesses or major surgery.Basic Wages & DA for six months or employees’ share, whichever is less.
4.68-KMarriage (self ,children ,brother & sister) or post matriculation education of childrenSevenyears’ membership of fund. employees’ share in PF balance is more than Rs 1,000/- Only three withdrawals allowed.50% of employees’ share.
5.68-LNatural calamityNatural calamity declaration by State Government & proof of damage to property.Employees’shareorRs 5,000/-, whichever is least.
6.68-MCut in electricity in factory/establishmentCut in electricity supplied by State Government.Wages for a month or Rs 300/- or employees’ share, whichever is less.
7.68-NPhysically handicapped members for purchaseof equipmentOn account of physical handicap.Basic Wages & DA for six months or employees’ share or cost of equipment, whichever is less.
8.68-NNWithdrawal one year before retirement.Age of member is 54 years and above90% of total PF balance
9.68-NNNForinvestmentin VarishtaPension Bima Yojana.Age of member is 55 years and above90% of total PF balance.

123. What are the documents required to be submitted for availing above advances?

Answer: No document is required to be submitted.

124. What are the other facilities available for the member?

Answer:

Member portal: EPFO provides UAN based online account of member data on EPF website secured with login password.

Passbook: for updated balance

Online claim filing: A member can file online EPF claims for various benefits through member portal if the EPF account is seeded with Aadhar, PAN & Bank account.

Online filing of transfer claim from previous account to new EPF account in case of job change from one covered EPF establishment to another EPF Covered establishment.

Modified Declaration form (Form No-11) for automatic transfer of Funds: Member can effect transfer of EPF Fund from previous account to new account without transfer claim if both account is linked with UAN and Aadhar seeded.

125. Which forms to be filled for claiming benefits?

Answer:

  • For Final settlement/Withdrawal benefits/Advances: Composite Claim form (Aadhar/non-Aadhar)
  • Scheme certificate: Form 10C
  • For pension: Form 10D
  • For transfer of previous account balance to new account: Form 13
  • For nomination of family members: Form 2
  • Declaration of previous service: form 11

126. How to submit claim form?

Answer:

A. Online: If PF account is seeded with Aadhaar, PAN and Bank account is updated. Only Composite Claim Form (Aadhaar) for PF final withdrawal, Pension withdrawal benefits and PF non-refundable advances can be filed online.

B. Offline: All type of claims.

127. How to Update Bank account?

Answer: A member can update his bank account through member portal which is then approved by employer.

128. How much time is taken to settle claim?

Answer: As per EPF Scheme, a claim is required to be settled within 20 days.

129. How do I get my grievances redressed?

Answer: A member can approach the concerned Regional P.F. Commissioner. A member can also file a complaint online at the following link: http://www.epfigms.gov.in

130. What is KYC?

Answer: KYC (Know Your Customer) is member’s data updation to improve the services of EPFO for members. These KYC details include PAN, Aadhaar and Bank Account details. If you have not yet updated these details on the EPFO Member Portal, you may do it now.

131. How can I update KYC?

Answer: Member can update KYC details online in EPFO’s UAN Portal.

132. What are the benefits of KYC?

Answer: Claim can be submitted through online mode without attestation of the employer. A member can view his monthly contribution statement by logging on UAN portal.

133. What are KYC documents that can be submitted?

Answer: Following documents are considered for KYC –

  • National Population Register
  • AADHAR
  • Permanent Account Number (PAN)
  • Bank Account Number
  • Passport
  • Driving License
  • Election Card
  • Ration Card

134. How do I apply for correction in KYC/members’ details?

Answer: In order to update or change in KYC (Know your customer) detail on UAN EPFO portal, a member requires UAN (Universal Account Number). Member can login to EPFO UAN portal and update KYC by uploading necessary documents online. Online request for correction in name, date of birth and gender has been introduced.

135. What is UAN?

Answer: UAN (Universal Account Number) is a unique 12 digit number allotted to a member. It is a permanent number and remains valid throughout the life of a member. It does not change with the change of employment. UAN helps in automatic transfer of Funds and PF withdrawals.

136.  Who can generate UAN and How I can get my UAN?

Answer: Your Employer can generate the UAN. In case of change in employment, the previously allotted UAN may be provided to the employer.

137. How Aadhaar is seeded with UAN?

Answer: Member can seed his Aadhar through Member portal, after UAN is activated by employer.

138. How PAN is seeded with UAN?

Answer: Member can seed his PAN through Member portal, after UAN is activated by employer.

139. How bank account is seeded with UAN ?

Answer: Member can seed his Aadhar through Member portal, approved by employer.

140. What are the benefits of Aadhaar, PAN &Bank accounts details seeded with UAN ?

Answer:

  • Member can submit claims through online mode
  • Member can file claim directly without employer’s signature.

141. What is an Inoperative Account?

Answer: An account is classified as Inoperative account in which contribution has not been received for 3 years after retirement or permanent migration abroad or in case of death. At present, all accounts will earn interest upto 58 years age of a member.

142. Will my inoperative account earn interest?

Answer: No. However, at present, all accounts will earn interest upto 58 years age of a member.

143. What should I do if my account becomes inoperative?

Answer: If you are still working in an establishment covered under EPF & MP Act, 1952, you should get the amount transferred into your new account either by online or offline mode. If you have retired then you may withdraw the amount.

144. Will my withdrawal be subject to deduction of income tax (TDS)?

Answer: In case a member withdraws his EPF and has rendered less than 5 years of service and accumulated amount is more than Rs. 50,000/, TDS shall be applicable on the following rates:-

Submission of PANNon submission of PANNo TDS deducted in case of
If 15G/15H is submitted, no TDS is deducted
If 15G/15H is not submitted,TDS deducted at 10%
TDS is deducted at Maximum Marginal Rate (34.606%)Transfer of Fund
Payment of advance
Service is terminated by employer beyond control of employee

145. Will tax be deducted at source (TDS) if my service is more than 5 year (60 months)

Answer: No. The service rendered at previous as well as present employer would be added to arrive at total service.

146. What is the benefit of providing PAN?

Answer: If a member provides/link PAN and the PF balance is more than Rs. 50,000/ and service rendered is less than 5 years, then tax (TDS) would be deducted @10% and not

147. What is Form 15G/15H?

Answer: Form 15G and Form 15H are declarations which can be submitted to receive payments without deduction of tax in case of members having total annual income of Rs. 2.50 lacs and Rs 3.00 lacs respectively. Form 15H is applicable for Senior Citizens (60 years or older) whereas Form-15G is for everybody else. Also, a member must have a PAN before applying in these forms.

148. How many copies of 15G/15H have to be submitted?

Answer: Two copies of form 15G/15H, whichever is applicable, are to be submitted with the claim forms.

149. How to file Nomination form for EPF?

Answer: Form No-2 is prescribed under Employees Provident Fund, employees’ Pension Scheme and Employee’s Deposit Link Insurance Scheme for submitting family and nomination details.

150. What are benefits of submitting Form No-2?

Answer: In case of a member’s death, the family can get the benefit PF/Pension/Insurance without any delay.

151. How do I fill Form No-2?

Answer: Member can submit Form No.-2 online through the employer. E-sign facility has also been extended to the members to submit Form No.-2 online. In case, new family member is added, the EPF member should fill Form No- 2 to update the details in EPFO. Form No.-2 can be submitted online as well as offline mode.

152. What if my employer is not available to sign the claim form or the establishment has closed down?

Answer: In such a scenario, the claim form may be attested by the Manager of the Bank in which your savings Bank Account is currently maintained.

153. Am I required to affix revenue stamp of Re 1/- on the claim forms?

Answer: No.

154. Is it compulsory to enclose cancelled original cheque with the claim form?

Answer: Yes. A cancelled original cheque bearing name of the member, his bank account number and IFS Code of the bank should be printed on the cheque itself.In case, members’s bank account is ‘without cheque-book’ facility, then copy of first page of passbook duly attested by the employer or the bank manager may be enclosed with the claim form.

155. What is Composite Claim Form (Non-Aadhaar)?

Answer: Composite Claim Form (Non-Aadhaar) is a single page form for settlement of PF final withdrawal, pension withdrawal benefits and PF non-refundable advances. The claim is required to be submitted offline and attested by the employer.

156. What is Composite Claim Form (Aadhaar)?

Answer: Composite Claim Form (Aadhaar) is a single page form for settlement of PF final withdrawal, pension withdrawal benefits and PF non-refundable advances. It can be submitted both in online as well as offline mode and does not require the attestation of the employer. This form is applicable in cases where employees’ complete details in Form No-11 (New), Aadhaar number and Bank Account details are available on UAN Portal and UAN has been activated.

157. Are the payments made through NEFT (National Electronic Funds Transfer)?

Answer: All payments are made electronically through NEFT or CBS (Core-Banking Solutions).

158. What does Commutation of Pension mean ?

Answer: Commutation of Pension means payment of lump sum amount in lieu of a portion of pension surrendered voluntarily by the pensioner

159. What is Employees’ Pension (Amendment) Scheme 2020?

Answer: In the Employees’ Pension Scheme 1995, after paragraph 12, the following paragraph has been inserted which is thereby called Employees’ Pension (Amendment) Scheme 2020: “12B. Restoration to normal pension in cases of grant of commutation – The normal pension in respect of those members who availed the benefits of commutation of pension under the erstwhile paragraph 12 A of this Scheme on or before the 25th day of September 2008 shall be restored after completion of fifteen years of the date of such commutation.”

160. Who can avail the benefits of restoration to normal pension in cases of grant of commutation?

Answer: Those members who availed the benefits of commutation of pension under the erstwhile paragraph 12 A of this Scheme on or before the 25th day of September 2008 shall be restored after completion of fifteen years of the date of such commutation.

161. What changes does the new Gazette Notification No.132 (E) on restoration of commutation contain?

Answer: The relevant provision in Para 12A entitled the pensioner to commute 1/3rd pension & thereafter his entitlement was to get balance 2/3rd pension. The scheme did not have any provision for restoration of the original pension of the pensioner once the pension has been commuted. However, According to the government notification G.S.R No. 132(E) dated 20.02.2020 introduced Para 12B allowing restoration of original pension after 15 years.

162. When pensioners who opted for commutation will receive their full pension?

Answer: The Pensioners would receive their full pension after completion of fifteen years from the date of commutation.

163. Has there been any educational programme conducted for pensioners?

Answer: Yes. EPFO is conducting webinars through its Regional Offices and Pensioners may request the concerned Office for participation to resolve any querry.

164. Explain about the scheme of EPFO to settle claims on the day of retirement / superannuation.

Answer: EPFO has launched a scheme called ‘Prayaas- an endeavour to release Pension on the day of Superannuation’ for members of Employees Pension Scheme 1995. Members superannuating within 03 months are guided to submit Pension claims one month before the day of retirement so that Pension Claims of these employees can be settled for issuance of PPOs on the Date of retirement.

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