Provident Funds

Eligibility: Any establishment with 20 or more employees is required by law to register with the EPFO and provide PF benefits to its eligible employees. Some establishments with fewer than 20 employees may also be eligible to join the PF scheme voluntarily.

Registration: Employers need to register their establishments with the EPFO and obtain an Establishment Code Number. Employees are then allotted a Universal Account Number (UAN) by the EPFO, which remains constant throughout their career, even if they change jobs.

Contribution: Both the employer and the employee contribute to the PF account. The current contribution rate is 12% of the employee's basic salary plus dearness allowance. The employer contributes 12% of the employee's basic salary to the PF account, out of which 8.33% is diverted to the Employee Pension Scheme (EPS) and the remaining 3.67% goes to the Employee Provident Fund (EPF). The entire employee contribution goes to the EPF.

Monthly Deduction: The PF contribution is deducted from the employee's salary every month and is deposited into the respective PF accounts with the EPFO.

EPF Passbook: Employees can access their PF account details, including contributions and balance, through the EPF passbook, which is available online on the EPFO portal.

Withdrawal and Transfer: Employees can withdraw their PF balance under certain circumstances, such as retirement, resignation, or in case of emergencies like medical treatment, education, or house construction. In some cases, partial withdrawals are allowed. Additionally, if an employee changes jobs, they can choose to transfer their PF balance from their old account to the new one to continue accumulating funds.

Interest: The EPFO announces the interest rate for the PF accounts annually. The interest is compounded annually and is tax-free.

UAN-based Services: The UAN facilitates various services like checking the PF balance, updating KYC details, and filing claims online. It simplifies the process for employees and provides better accessibility.