Summary
The Employees’ Provident Fund Organization (EPFO) in India operates as a vital system for delivering social security benefits together with financial stability to employees. EPFO started as the Employees’ Provident Funds Ordinance on November 15, 1951, through which EPFO oversees one of the world’s largest provident fund schemes.
Workers receive retirement benefits from this system during resignation activities or at retirement or after fulfilling specified qualifying criteria. EPFO functions through 122 nationwide offices as a ministry-subordinate organisation under the Central Board of Trustees. It operates under the Labour and Employment Ministry to implement national policies.
What is EPFO (Employees’ Provident Fund Organisation)?
The Employees’ Provident Fund Organisation (EPFO) functions as part of the Government of India Ministry of Labour and Employment to manage provident funds for all sectors’ employee retirement savings. The Employees’ Provident Fund Organisation started its work in 1951 to enable employees to build retirement funds through disciplined deposit systems.
The Employees’ Provident Fund Organisation manages numerous social security plans to guard both domestic Indian workers and staff members from international locations that participate under Indian bilateral agreements. The organization provides critical financial stability together with welfare benefits and retirement security to personnel who stay with the organization during employment years and thereafter retirement.
EPF Benefits
Here are the key advantages of the EPF scheme:
- EPF helps people build future financial security by accumulating their contributions steadily throughout the years.
- People can build substantial funds through EPF by enabling automatic deductions from their monthly wages to add up progressively throughout the years.
- The Employees’ Provident Fund functions as a dependable financial resource that people can use in urgent situations.
- Employees receive retirement security through EPF because it builds retirement savings that enable them to enjoy a comfortable lifestyle after retiring.
Key Schemes Under EPFo
Through its three principal schemes, the EPFO serves different benefits to employees.
- The Employees’ Provident Funds Scheme, 1952 (EPF)
- The Employees’ Pension Scheme, 1995 (EPS)
- Under the Employees’ Deposit Linked Insurance Scheme, 1976 (EDLI), employees can benefit from its program.
The following section details each program of EPFO with an explanation about their advantages.
1. The Employees’ Provident Funds Scheme (EPF)
Employees have to participate in the EPF system since it functions as a required financial protection plan for employee savings. Employees and their employers set aside funds from each salary that create a growing account with added interest.
Benefits
The retirement fund accumulates into a single sum, which garners interest when employees leave work through retirement, resignation or death.
Employees may request partial transfers towards certain accepted life events, including:
- House construction
- Higher education
- Marriage expenses
- Medical emergencies
Nomination
- Three EPF and EDLI accounts can be managed via a unified nomination agreement referenced as Form 2R.
- Members of staff who have family members must select one or more relatives for nomination purposes.
- Workers who do not have family members today can select a different person as their nominee, although this change becomes void whenever they form a family subsequent to nomination.
Claim Forms
A member of the Employees’ Provident Fund can file Form 19 to finalize their EPF account.
- The EPF account changes employers through the utilization of the official document Form 13.
- Recovery through the designated Form 31 allows members to withdraw part of their EPF balance for particular needs.
- The EPF account allows members to finance an LIC policy through Form 14.
- The process of benefit disbursement to either deceased members’ nominees or beneficiaries uses Form 20.
2. The Employees’ Pension Scheme (EPS)
Under EPS, employees become eligible to receive regular monthly pension benefits when they retire and also in situations involving death or disability.
Benefits
- Monthly pension for retirees, survivors, widows/widowers, and children.
- Pension amounts result from averaging past one-year salaries and employee tenure length.
- Minimum pension eligibility in case of disablement.
- The retirement benefits from the past Family Pension Scheme of 1971 existed before its replacement by EPS.
Nomination
- All employees need to maintain a list of their spouse and children in their nomination form.
- However, employees without family members may select an alternate individual for nomination yet this designation terminates when they start having family members.
Claim Forms
- Members need to file Form 10D for obtaining pension payments on a monthly basis.
- Form 10C—For withdrawal benefits or scheme certificate.
3. The Employees’ Deposit Linked Insurance Scheme (EDLI)
EDLI serves as the Employees’ Deposit Linked Insurance Scheme that offers life insurance to employees who pass away unexpectedly.
Through the Employees’ Deposit Linked Insurance Scheme, workers obtain life insurance that helps families following deaths before retirement.
Benefits
- The death benefit from EPF goes directly to the selected nominee of the deceased member.
- The death benefit amount equals the lower value between 20 times the employee’s wages and their EPF balance.
- Since the wage ceiling rose to ₹15,000 per month starting September 1, 2014, the EDLI scheme offers a maximum death benefit of ₹3 lakh that includes 20% beyond the computed amount.
Nomination
Each member of the Employees’ Provident Fund automatically qualifies for the Employees’ Deposit Linked Insurance through nomination.
Claim Forms
A Form 5IF enables eligible people to claim insurance payments after an employee passes away during active service.
Applicability of the Act
Under the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952, multiple industrial sectors and organizational setups fall under its jurisdiction. The Act extends its provisions to 187 different types of businesses along with factories and all organizations with twenty or more workers.
Employer Obligations
Employers need to file Form 5A to the Act once their organization becomes subject to its regulations.
The employers need to guarantee full compliance with both EPF contribution laws and benefit provisions.
What is the new rule of the EPFO for pensions?
Eighteen and two-thirds percent (8.33%) of an employer’s 12% contribution goes to the Employees’ Pension Scheme (EPS) while the remaining 3.67% goes to the EPF according to the new EPFO rule. Up to Rs.15000 in employee salary determines the maximum 8.33% EPS contribution amount from employers despite higher earned salaries.
Does the EPFO pension increase every year?
A pension recipient can experience increased pension funds. Members can begin receiving their pension at 59 or 60 when delaying their initial pension draw after turning 58. However, pension contributions stop after 58. The pension payment value grows by 4% through each yearly period beginning at age 58.
Who is eligible for the EPFO higher pension?
People who joined EPF before August 31, 2014 or retired by then, have the choice to receive increased pensions through the Employees’ Pension Scheme (EPS). The pension amount will use your total basic salary as the calculation basis rather than restricting it to Rs 6,500/Rs 15,000.
What is the minimum pension in EPFO?
The government evaluates increasing the minimum pension benefit under EPS for private sector employees to ₹7,500 from its present value of ₹1,000. Pensioners request both increased Dearness Allowance (DA) benefits and free medical assistance which should include their spouses.
Who is not eligible for PF pension?
If someone joined the Employees’ Provident Fund (EPF) scheme after September 1, 2014, and their monthly salary is more than Rs 15,000, they cannot open an Employees’ Pension Scheme (EPS) account.
Plan today for a worry-free tomorrow! EPFO empowers you with provident fund savings, pensions, and life insurance benefits. Stay proactive—track your contributions, secure your nominees, and claim what’s rightfully yours.
- Instantly check your EPF balance
- Simplify claims with hassle-free processing
- Ensure a secure pension & insurance for your future
Take charge of your financial well-being—visit the EPFO portal or your nearest EPF office today!
