What is EPF?
Employees’ Provident Fund (EPF) is a savings scheme designed to help employees build a retirement corpus.It’s like a long-term piggy bank where both you and your employer contribute a fixed amount from your salary every month.
Who Manages EPF?
EPF is managed by the Employees’ Provident Fund Organisation (EPFO), which is a government body under the Ministry of Labour and Employment.
How EPF Contributions Work
- Employee Contribution: 12% of your basic salary + dearness allowance.
- Employer Contribution: 12%, but only 3.67% goes to your EPF account. The remaining 8.33% goes to your EPS (Employee Pension Scheme).
Example: If your basic pay is ₹20,000:
- You contribute ₹2,400
- Employer contributes ₹2,400 (₹734 to EPF and ₹1,666 to EPS)
UAN – Your Key to EPF
UAN (Universal Account Number) is a unique 12-digit number given to every EPF member. It helps you track your EPF accounts across different jobs and employers.
EPF Interest Rate
- The EPF interest rate is set annually by the government.
- For the financial year 2023-24, the EPF interest rate is 8.25%.
When Can You Withdraw EPF?
You can withdraw from your EPF account:
- At retirement
- After 2 months of unemployment
- For emergencies like medical treatment, home purchase, education, or marriage (partial withdrawals)
How to Check EPF Balance
- UMANG App: Download and log in to check balance.
- EPFO Website: Use your UAN to check passbook.
- SMS: Send
EPFOHO UAN ENGto 7738299899 from your registered mobile. - Missed Call: Give a missed call to 9966044425.
Is EPF Safe?
Yes! EPF is a government-backed savings scheme. Your money earns guaranteed interest and grows steadily over the years.
Benefits of EPF
- Safe & Secure: Government-regulated
- Tax Benefits: Under Section 80C of Income Tax Act
- Retirement Planning: Helps build a retirement fund
- Insurance & Pension: Linked with EDLI (insurance) and EPS (pension)
Final Thoughts
EPF is one of the best ways for salaried employees to build a strong financial future. By contributing a small part of your salary regularly, you can enjoy peace of mind and financial security after retirement.
