benefits under epf
DESCRIPTION
Benefits under EPFTRANSCRIPT
Benefits Under EPFDr. G C Mohanta, BE(Mech), MSc(Engg), MBA, PhD(Mgt)
Professor
Major Benefits Under EPF Provident Fund Benefits Pension Benefits Death Benefits
1. Provident Fund benefits
Employer & employee contributes to employee’s PF @ 12% each ( 10% in case of sick industrial co.
EPFO guarantees Employer’s contribution and credits interest
Member can withdraw from these accumulations to cater to financial exigencies
On resignation, the member gets back his PF contribution, Employer Contribution and Interest
2. Pension Benefits
1. Pension to Member 2. Pension to Family (on death of member)
3. Pension Scheme Certificate After attaining the age of 50 or above,
the member can apply for Pension by surrendering the Certificate
Pension Benefits
4. Withdrawal Benefit If not eligible for pension, member can withdraw
the amount accumulated in his pension account 5. No amount is taken from Member to give
Pension to the Member Employer and Govt. contributes to Pension fund
@8.33% and @1.16% respectively 6. EPFO guarantees pension to members,
even if the Employer has not contributed to Pension Fund
3. Death Benefits
Provident Fund Amount to Family (or to Nominee)
Pension to Family (or to Nominee) Capital Return of Pension Insurance (EDLI) amount to Family (or to
Nominee) No amount is taken from Member for this
facility, employer contributes for this Nominee is nominated by the member
through declaration at his office
How to become EPF Member
To become EPF member, you have to work in an establishment which is covered under EPF
If 20 or more employees are working in the establishment, EPFO will cover that establishment
If Employer and Employees desires, an establishment can opt for EPF coverage with employees less than 20
How to withdraw money from EPFYou can withdraw total money from EPF
Account, when you resign or retire & apply for settlement of PF
You can withdraw partially or get partial advance for some admissible purposes during your service
How to get Pension If you have attained the age of 50 years or
more Completed a total service of 10 years or more Not getting any other EPF Pension You have to apply to the EPF Office through
your last employer for Pension
When You Can Apply for Pension1. On superannuation- At 58 years’ age or more and atleast ten years
of service 2. Before superannuation- Age between 50 and 58 years and at least ten
years of service, - Member should not be in service3. Death of the member, while in service or
Death while not in service4. Permanent disabilityNo pensioner can receive more than one EPF Pension
How to settle EPF account
• When you resign or retire from an establishment and apply for settlement of PF
• If the member dies, Family members/Nominee have to apply for settlement of PF
Employees' Deposit Linked Insurance (EDLI)
• On death of a member, the Family Members or Nominee can claim for EDLI Benefit
• Maximum amount payable is Rs. 60,000/-• The nominee(s) have to apply through the
Employer• No amount is taken from the Member for this
facility• Employer contributes for this • Average PF Balance, salary and service are the
factors considered for the calculation of this amount
Advances/ Withdrawals from EPF for following purposes :
Marriage Education Medical Treatment Purchase or construction of Dwelling house Repayment of Housing Loan Purchase of Plot Addition/Alteration of House Repair of House Lockout in companyWithdrawal Prior to Retirement Other Advances