The Employee’s Provident Fund or EPF was developed with the enactment of the Employee’s Provident Fund Ordinance in 1951. The EPF ordinance was then replaced by the EPF Funds Act,1952. This bill was later introduced in the parliament in the year 1952 in order to facilitate provident funds for employees in establishments like factories, offices, etc.
The law that governs the EPF is now termed the Employee’s Provident Funds and Miscellaneous Provisions Act,1952, also known as the Act. The act is in action all over India except for the state of Jammu and Kashmir.
The employee, as well as the employer each, contribute 12% of the employee’s basic salary and dearness allowance towards EPF. Nowadays, the interest rate in EPF deposits is 8.50% per annum.
Benefits of EPF
There are numerous benefits of having an Employee’s Provident Fund. Some of these benefits include the following:
- A single and lumpsum investment is not required in the case of an EPF. Deductions are made every month from the employee’s salary, which helps in saving a good amount of money over a period of time.
- EPFs help in saving money for the long run
- Provide financial support to an employee during an emergency
- EPFs also provide financial assistance at the time of retirement and helps the employee maintain a good lifestyle standard
Eligibility criteria of EPF
In order to join the EPF scheme, the employee must fulfil the following eligibility criteria:
- It is compulsory for the employee to have a monthly salary of less than Rs 15,000 to register for an EPF account
- According to the law, an organisation having more than 20 employees have to register themselves for the EPF scheme
- Employees that have a monthly income of more than Rs 15,000 can also register for the EPF scheme, however, they will have to get approval from the Assistant PF Commissioner
- The whole of India except the state of Jammu and Kashmir can benefit from the provisions of the EPF scheme
In order to check your EPF balance, you can avail of the following four methods:
- Using the UMANG app
You can download the Unified Mobile Application for New-age Governance or UMANG app and do the EPF balance check on your mobile phone itself. Along with checking your balance, you can also track claims through this app
- Using the EPFO portal
The procedure of checking your EPF balance via the EPFO member portal is simple. All you need to do is log in using your UAN and password. After doing so, you will be able to view your EPF balance under the member ID
- Using an SMS service
In case your UAN is activated, you can simply send an SMS to 7738299899 for getting your updated balance check
- Using a missed call service
It is also possible to check your EPF balance through the convenience of giving a missed call to the number 011-22901406, from your registered mobile number