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					                                       EPF – FAQ

What is EPF?

    EPF is Employees Provident Fund. Both the Employee and the Employer contribute
to this fund.

Who manages the Fund?

   This is a Fund maintained by the EPF Organization. The Central Board of Trustees
(CBT) of this organization is the body which controls this organization. It has
representatives of Employees, Employers and the Government. The fund is managed by
the CBT.

Is it safe?

   It is absolutely safe as it is managed by the tripartite body as mentioned above.

How much one can contribute?

   One can contribute generally @ 12% of one’s emoluments. However if one is
employed in brick, beedi, jute, guar gum factories and coir industry other than spinning
sector the rate of contribution is 10%. [Emoluments include basic wages, dearness
allowance, cash value of food concession and retaining allowances, if any.] Though this
is the statutory limit, one can contribute more than this rate also. The percentages of 12%
and 10% of the emoluments are subject to a ceiling of Rs 6500/-. That is, if the
emoluments per month is upto Rs 6500/-, the contribution will be 12 or 10% of that
amount. If the emoluments are more than Rs 6500/-, then the contribution amount will
be restricted 12 or 10% of Rs 6500/-. The Employer also will contribute at an equal rate
of 12% or 10% as the case may be. This contribution is also subject to the ceiling or Rs
6500/- as explained.

What are the benefits from the fund?

   There are three benefits to the members of the fund. One is the benefit of Provident
fund saving with interest. Second is pension. The third is deposit linked insurance.

    If one becomes the member of EPF he automatically becomes the member of
Employees Pension Scheme 1995 as well as the Employees Deposit Linked Insurance
Scheme 1976 (EDLIS). The entire contribution of the employee and 8.33% of the
contribution of the employer will go to the EPF. This will fetch annual interest. The rate
of interest varies from year to year depending upon the earning of the Fund.

   The balance contribution of the employer will go to the Employees Pension Fund.
The central Government also contributes at the rate of 1.16% to the Pension Fund. The
employee need not contribute anything to the Pension Fund.
   The employer will contribute 0.5% of the emoluments to the EDLIS. Employees are
not required to contribute to the EDLIS.

How to know the balance in the fund?

   The balance in the EPF can be seen from the annual account slip issued by the EPFO
to each member.

How to take advance?

   One can withdraw some amount from his EPF for some specific purposes only. The
purposes for which such withdrawals and loans can be availed and other conditions are as

    Advance/ Withdrawals may be availed for the following purposes :

            Marriage / Education
            Treatment
            Purchase or construction of Dwelling house
            Repayment of Housing Loan
            Purchase of Plot
            Addition/Alteration of House
            Repair of House
            Lockout
            Withdrawal Prior to Retirement
            Other Advances
            Notes

    For Marriage / Education
                                                        Maximum        Proof/
Type of
           Purpose                          Eligibility Admissible documents
Advance                                                           **
                                                        Amount         required

Under      For the marriage of:             Should      50% of         Apply in Form-
Para 68-                                    complete    Employee       31 through the
k of the          1.      self              atleast 7   share at the Employer
Scheme            2.      son, daughter     years of    time of
                  3.      brother, sister   service.    tendering      Bonafide
                                                       the             Certificate duly
           For education of :               3 times in application     indicating the
                                            the entire                 fees payable
                          o       self      service                    from the
                          o       son,                                 educational
                          daughter                                     institution

                                                                       invitation card
                                                                       along with the
                                                                       should be
                                                                       through the
        For Treatment

Type of     Purpose                                 Eligibility                Maximum Proof/
Advance                                                                        Admissible documents
                                                                               Amount     required
Under       For the treatment of :                         No minimum         6 times of   Certificates
Para 68-j                                                   service            Wages        of proof as
of the         1. self                                      required                        mentioned
               2. Hospitalisation for 1 month              Certificate        OR           in the
                                                            from ESI or                     eligibility
                   or more
                                                            from               Full of      column
                       1. major surgical                    Employer that      Employee
                             operation in a                 the ESI            share        Apply in
Whenever                     hospital                                          (whichever   Form-31
                                                            facility are not
required               2.    suffering from TB,                                is less)     through the
                                                            available to
for                          leprosy, paralysis,                                            Employer
                                                            the member
treatment                    cancer, mental                a doctor [ or
                             derangement or                 registered
                             heart ailment                  medical
                             and having been                practitioner]
                             granted leave by his           of the hospital
                             employer for the               certifies that a
                             treatment of said              surgical
                             illness                        operation or
                                                            n for 1 month
                                                            or more
               2. family( spouse, son,                      is/was
                   daughter, dependent father,              necessary
                   mother)                                 In case of TB,
                      1. major surgical                     leprosy ...etc.,
                           operation in a                   a specialist
                           hospital and 1                   doctor should
                           month or more                    certify
                           hospitalisation for
                           the operation
                      2. suffering from TB,
                           leprosy, paralysis,
                           cancer, mental
                           derangement or
                           heart ailment
    For the construction/ purchase of dwelling unit (house/ flat)

                                                      Maximum       Proof/
Type of
                   Purpose       Eligibility          Admissible    documents
Advance                                                      **
                                                      Amount        required
Under Para 68- For the                  Should                     Declaration in
B of the       construction/             complete 5                 the Proforma
Scheme         purchase of               Years of                   obtained along
               dwelling unit             service                    with application
               (house/ flat)            Only once                  signed by
                                         in service                 Member
                                        property
Only Once                                                           Apply in Form-
                                         should be in
(either                                                             31 through
                                         the name of
'construction or                                      36 times of   Employer
                                         self or
purchase of                                           Wages
                                         spouse or
house' or
'repayment of
                                        should not
housing loan)
                                         be a joint
                                         owned by
                                         other than
Apply in Form-                           the spouse
     Repayment of housing loan

                                                          Maximum       Proof/
Type of
                 Purpose      Eligibility                 Admissible    documents
Advance                                                          **
                                                          Amount        required
Under Para       Repayment                                36 times of   Declaration in
68-BB of the     of housing                   Should     Wages         the Proforma
Scheme           loan                 complete 10                       obtained with
                                      Years of service                  approval and
                                              Only                     signed by the
                                      once in service                   Member
Only Once
                                              property
                                      should be in the                  Apply in Form-
                                      name of self or                   31 through the
or purchase of
                                      spouse or jointly                 Employer
house' or
                                              should
'repayment of
                                      not be a joint
housing loan)
                                      property owned
                                      by other than
Apply in Form-
    For the purchase of site/ plot

                                                          Maximum       Proof/
Type of
               Purpose        Eligibility                 Admissible    documents
Advance                                                          **
                                                          Amount        required
Under Para     For the                                    24 times of   Filled-up
                                              Should
68-B of the    purchase of                                Wages         Declaration(from
                                      complete 5
Scheme         site/ plot                                               the Employee in
                                      Years of service
                                                                        the prescribed
                                              Only
                                                                        form and
                                      once in service
                                                                        enclosed with
Only Once                                     property
                                                                        the application.
                                      should be
                                      registered in the
                                                                        Copy of the
                                      name of self or
                                      spouse or jointly
                                              should
                                      not be a joint
                                      property owned
                                      by other than                     Apply in Form-
                                      spouse                            31 through the
    Addition/alteration of house

                                                                   Maximum    Proof/
Type of
             Purpose                 Eligibility                   Admissible documents
Advance                                                                   **
                                                                   Amount     required
Under Para   Addition/alteration                     Should       12 times of   Certificates
68-B(7) of   of house                        complete 5 Years Wages              of proof
the Scheme (same type of                     after construction
             advance can be                          Annexure                   Apply in
             availed for repair of           III (construction /                 Form-31
             house)                          completion                          through the
Only Once
                                             certificate/                        Employer
                                             certificate) should
Apply in                                     be submitted
Form-31                                              Only
                                             once in service
                                                     property
                                             should be in the
                                             name of self or
                                             spouse or jointly
                                                     should
                                             not be a joint
                                             property owned
                                             by other than
   Repair of house

                                                             Maximum       Proof/
Type of
              Purpose          Eligibility                   Admissible    documents
Advance                                                             **
                                                             Amount        required
Under Para    Repair of                        Should       12 times of   Certificates of
68-B(7) of the house                   complete 10           Wages         proof
Scheme        (same type of            Years after
              advance can              construction                        Apply in
              be availed for                   Annexure                   Form-31
              alteration of            XIII (construction                  through the
Only once
              house)                   completion                          Employer
                                       certificate) should
                                       be submitted
                                               Only
                                       once in service
                                               property
                                       should be in the
                                       name of self or
                                       spouse or jointly
                                               should
                                       not be a joint
                                       property owned
                                       by other than
    Lockout or closure of the establishment

                                                            Maximum         Proof/
Type of
               Purpose          Eligibility                 Admissible      documents
Advance                                                            **
                                                            Amount          required
Under Para     Lockout or                        No        equivalent to   Declaration
68-H of the    closure of the           minimum             the total of
Scheme         establishment            service             wages           Apply in Form-
                                                 should    multiplied by   31
                                        be closed for       no. of months
                                        more than 15        closed
need arises
                                                 Wages
                                        for atleast 2
                                        months is not
                                                 Balance
                                        should be there
                                        in Employee's
                                        share. If closed
                                        for more than 6
                                        advance can be
                                        allowed from
                                        share also
   Withdrawal prior to retirement

                                                          Maximum           Proof/
Type of
               Purpose        Eligibility                 Admissible        documents
Advance                                                          **
                                                          Amount            required
Under Para     Withdrawal                      No        90% of total of   Certificate from
68-NN of the   prior to               minimum             both shares       the employer
Scheme         retirement             service                               showing the
                                               atleast                     date of
                                      54 years of                           retirement
Only once
                                               1 year                      Apply in Form-
                                      before                                31
   Other Advances


Types of Benefit   Eligibility        Eligible Amount        Form

Grant of advance   · Certificate of   Rs. 5000/- or 50% of   No.31 Certificate from
in abnormal        damage from        member’s own share            the Appropriate
conditions,        appropriate        of contribution (To           Authority.
Natural calamities authority.         apply within 4
etc.                                  months)
                   · State Govt.

Types of                                              Eligible          Documentary
                  Eligibility                                    Form
Benefit                                               Amount            Support

Grant of          The advance may be granted          Wages      No.31 Certificate from
advance to        only to a member whose total        for a             State Govt.
members           wages for any one month             month             regarding cut in the
affected by cut   commencing from the month           OR                supply of electricity.
in the supply of of January 1973 were 3/4 or          Rs.300/-
electricity       less than 3/4 of wages for a


                                             Eligible                   Documentary
Types of Benefit       Eligibility                               Form
                                             Amount                     Support

To Physically          Production of         Basic wages+        No.31 Certificate from the
Handicapped            medical certificate   DA for six                 Medical practitioner
member for             from a competent      months                     to the effect that
purchase of an         medical practitioner or own share of             the member is
equipment required     to the effect that he contribution               physically
to minimize the        is physically         with interest or           handicapped..
hardship on account handicapped              cost of
of handicap.                                 equipment
                                             which ever is


· The amount of advance/withdrawal is not required to be refunded under normal
circumstances. If the amount is not utilised, the same should be refunded with penal

· A fixed minimum balance in the account will be kept before arriving at the amount of
advance admissible subject to the above conditions
    · For calculation/ computing the period of membership U/P 68B, 68BB, 68K, total
    service exclusive of periods of break under the same employer before the scheme is
    applied to him, as well as period of membership of the fund is always included

How to withdraw the entire balance?

  Withdrawal of the entire balance or final settlement can be made on certain events. In
some cases the application for it can be made immediately and in certain cases after two
months of the event. These are as below:-



    Immediate settlement without                Settlement only after a waiting
     waiting period of 2 months                       period of two months
                                        69(1)(e)(i) transfer of a non retrenched
69(1)(a) Retirement after attaining 55
                                        employee from a closed establishment to
years of age.
                                        uncovered establishment.
69(1)(b) Retirement on account of total 69(1)(e)(ii) Transfer of an employee from a
and permanent incapacity due to bodily covered establishment to an un-covered
or mental infirmity .                   establishment under the same employer.
69(1)(d) Termination of service on      69(2) Other cases viz. Resignation, Leaving
retrenchment.                           service, etc.
                                        Note: For female members leaving service for
69(1)(dd) Termination on V.R.S          the purpose of getting married; waiting period
                                        not applicable.
69(1)(c) Migration from India for       69(1)(e)(iii) Members discharged &
permanent settlement abroad or taking retrenchment compensation paid under I.D. Act
employment abroad.                      1947.

Can it be transferred?

   Yes, the fund can be transferred on certain occasions, such as when an employee
leaves one job and joins another. In such cases a new account number is allotted. The old
balance can be transferred to the new account. Apply in From-13(R) through the NEW
Employer at the EPF Office from which transfer is sought. Clearly state New and Old EPF
Numbers. New EPF Number will be allotted by New Employer. Not by EPFO.
Should one transfer or close?

  It is always better to transfer the account rather than closing. After it is our saving
which will help us in times of providence.

What benefits are available under the EDLIS?

Assurance Benefit :
The benefit provided under the Employees' Deposit Linked Insurance Scheme is called
Assurance Benefit. On the death of the member while in service, the nominee or any
other person entitled to receive the Provident Fund benefits will, in addition to the
Provident Fund, receive the Assurance Benefit under Employees' Deposit Linked
Insurance Scheme .

Scale of Assurance Benefit :
From 1-4-93 onwards the amount of Assurance Benefit payable is an amount equal to the
average balance in the amount of deceased in the Fund during the preceding 12 months or
during the period of his membership whichever is less, except where the average balance
exceeds Rs. 25,000/- amount payable shall be Rs. 25,000/- plus 25% of the amount in
excess of Rs.25,000/- subject to a selling of Rs. 35,000/-. The Form prescribed for
claiming the Assurance Benefits under the Employees' Deposit Linked Insurance
Scheme, 1976 , is Form 5(IF).

* w.e.f. 24.6.2000 the amount of benefits has been increased to 60,000/-

Who can become a member of EPF?

Every employee (including part-time workers and those employed by or through
contractors) shall be entitled to become a member of the Scheme from the date of joining
the factory or the other establishment. (Para 26)

Every newspaper employee other than an excluded employee shall be entitled to become
member of the Fund after completion of 3 months continuous service or if he has
actually worked for 60 days during 3 months or less (There is no wage ceiling in the case
of newspaper employee). (Para 80)

Every Cine Worker other than an excluded employee shall be entitled to become a
member of the Fund if he has worked in not less than three feature films with one or more
producers provided his pay at the time of joining the Fund does not exceed Rs. 1600/-
P.M or Rs.15,000/- per year. (Para 81)
What are the responsibilities of the employer?

   The employer has the following responsibilities:

                 Enrol all categories of employees including the employees engaged by
       or through contractors and also piece rated, hourly rated employees.
      Remit the contributions and administrative charges before the 15th of the
       following month.
      File the initial returns of Form 9, Form 3(P.S.), form 5A.
      File the monthly returns in Form 12A, Form 5, Form 10 and Challans for
       remitting the dues.
      Maintain the contribution card in respect of each employee in Form 3A and
       submit the annual returns in Form 3A and 6A after reconciliation with Challans
       and form 12A.
      The employer has to ensure that statutory dues in respect of contractors
       employees are remitted and returns filed.
      Employer should attest the form No.2 and the claims forms submitted by the
       member/ legal heirs/ nominees.
      Make available all relevant records for inspection of visiting officials with due

What if the company is closed or if the employer refuses to cooperate?

    If the company is closed and the employer is either not traceable or refused to sign the
subscriber to the fund can still submit his claim for settlement through other means. It is
the duty of the employer under the Act & Scheme to help Employees' Provident Fund
organisation to settle the Provident Fund dues of his employees. He has to complete the
prescribed application within 5 days of receipt [para72(5)] forms & hand over it to the
member when he leaves the service. When a member finds it difficult to get the form
attested by the employer, he can get the attestation of any of the following officer & send
to the Provident Fund office:

   1. Manager of a bank.
   2. By any gazetted officer.
   3. Member of the Central Board of Trustees./ committee/ Regional Committee
      Provident Fund Organization).
   4. Magistrate/ Post/ Sub Post Master/ President of Village Panchayat/ Notary

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