Employee State Insurance (ESI) and PF is Provident Fund (PF)

Out of all the schemes and laws, the EPF and ESIC are the most sought after. In both the schemes a predefined percentage is deducted from employee’s salary and proportionate amount is added to it by employer and then aggregate amount is deposited to the account of concerned employee. Both the Schemes are concerned with the employee welfare. Two such important social protections are ESI registration & EPF registration.

The Employees Provident Fund Organization (EPFO) is a statuary body which assists Central Board in administering compulsory contributory Provident Fund Scheme, Pension Scheme and Insurance Scheme for the workforce engaged in the organized sector in India.

The Employees' Provident Fund came into existence with the promulgation of the Employees' Provident Funds Ordinance on the 15th November, 1951. It was replaced by the Employees' Provident Funds Act, 1952. The Act is now referred as the Employees' Provident Funds & Miscellaneous Provisions Act, 1952 which extends to the whole of India. The Act and Schemes framed there under are administered by a tri-partite Board known as the Central Board of Trustees, Employees' Provident Fund, consisting of representatives of Government (Both Central and State), Employers, and Employees.

The Central Board of Trustees administers a contributory provident fund, pension scheme and an insurance scheme for the workforce engaged in the organized sector in India. The Board is assisted by the Employees’ PF Organization (EPFO), consisting of offices at 135 locations across the country. The Organization has a well equipped training set up where officers and employees of the Organization as well as Representatives of the Employers and Employees attend sessions for trainings and seminars. The EPFO is under the administrative control of Ministry of Labor and Employment, Government of India.

The Board operates three schemes - EPF Scheme 1952, Pension Scheme 1995 (EPS) and Insurance Scheme 1976 (EDLI).

New companies under incorporation will get EPFO Registration number on MCA Portal at the time of incorporation. Such companies will have to comply under (Employees Provident Funds and Miscellaneous Provisions Act, 1952) EPF & MP Act, 1952, and ESI Act, 1948 only when they cross threshold limit of employment.

No physical documents are to be submitted to EPFO and ESIC office for registration and also no physical visit is required. All the documents are to be uploaded online only at the time of filling application for registration.

The promulgation of Employees' State Insurance Act, 1948(ESI Act), by the Parliament was the first major legislation on social Security for workers in independent India. The ESI Act 1948 encompasses certain health related eventualities that the workers are generally exposed to; such as sickness, maternity, temporary or permanent disablement, Occupational disease or death due to employment injury, resulting in loss of wages or earning capacity-total or partial. Social security provision made in the Act to counterbalance or negate the resulting physical or financial distress in such contingencies, are thus, aimed at upholding human dignity in times of crises through protection from deprivation, destitution and social degradation while enabling the society the retention and continuity of a socially useful and productive manpower.

The ESI Scheme applies to factories and other establishment's viz. Road Transport, Hotels, Restaurants, Cinemas, Newspaper, Shops, and Educational/Medical Institutions wherein 10 or more persons are employed. However, in some States threshold limit for coverage of establishments is still 20. Employees of the aforesaid categories of factories and establishments, drawing wages upto 15,000/- a month, are entitled to social security cover under the ESI Act. ESI Corporation has also decided to enhance wage ceiling for coverage of employees under the ESI Act from 15,000/- to 21,000/-.

Categories of unorganized workers covered are construction workers, domestic workers, migrant workers, agriculture workers, gig and platform workers and other unorganized workers.

ESI Corporation has extended the benefits of the ESI Scheme to the workers deployed on the construction sites located in the implemented areas under ESI Scheme w.e.f. 1st August, 2015.

The ESI Scheme is financed by contributions from employers and employees. The rate of contribution by employer is 4.75% of the wages payable to employees. The employees' contribution is at the rate of 1.75% of the wages payable to an employee. Employees, earning less than 137/- a day as daily wages, are exempted from payment of their share of contribution.

However, there are certain procedures to be followed in order to legally safeguard the company, such as:

Employees’ Provident Fund (EPF) Fund (PF)

Employee and Employer Contributions to the Employee Provident Fund (EPF)

The Employees’ Provident Fund (EPF) is a savings scheme introduced under Employees’ Provident Fund and Miscellaneous Act, 1952. It is managed by the central board of trustees consisting of the government, employer and employees; it is assisted by The Employees’ Provident Fund Organization. EPFO works under the direct jurisdiction of the government and is managed through the Ministry of Labor and Employment.

EPF is commonly known as PF in India and is a scheme through which a portion of employee’s income is set aside for use during any emergency or post-retirement. The employer and employees deposit a certain percentage towards PF every month. The percentage of money to be deducted from the employee’s salary and percentage to be contributed by the employer is predefined under EPF Act.

For EPF, both the employee and the employer contribute an equal amount of 12% of the monthly salary of the employee.

Employees can contribute more than 12% of their salary voluntarily; however the employer is not bound to match the extra contribution of the employee.

For PF contribution, the salary comprises of fewer components: All Allowances paid as part of salary are subjected to PF contribution

Basic wages,
Dearness Allowances (DA),
Conveyance allowance and
Special allowance.

As per PF law, ‘Basic wages’ means

“all emoluments which are earned by an employee while on duty or (on leave or on holidays with wages in either case) in accordance with the terms of the contract of employment and which are paid, or payable in cash to but does not include:

the cash value of any food concession;
any dearness allowance (that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living), house-rent allowance, overtime allowance, bonus, commission, or any other similar allowance payable to the employee in respect of his employment or of work done in such employment and
any presents made by the employer.”

‘Basic wages’ and are hence liable for contribution under the PF law.

PF contribution is not attracted where the Employee is eligible to receive any additional amounts including incentives, bonus, over-time allowance etc. Allowances not earned by all Employees are not subject to PF contribution.

Cap on Provident Fund contribution

The employer’s monthly contribution is restricted to a maximum amount of 1,800. Even if the employee’s salary exceeds 15,000, the employer is liable to contribute only 1,800 (12% of 15,000). Details of EPF

The statutory compliance associated with PF contribution has some lesser known facts associated with it. The contributions by the employee and employer are divided into two separate funds:

EPF (Employee Provident Fund) and
EPS (Employee Pension Scheme).

The breakup happens as follows: The Employee contribution is completely allotted to Employee Provident Fund (‘EPF’) while the Employer contribution is bifurcated between EPF (3.67%) and Employee Pension Scheme (‘EPS’) (8.33%).

	Employee	Employer
Total contribution	12% of monthly salary	12% of monthly salary (subject to a maximum of 1,800)
Employee Pension Scheme (EPS)	0	8.33% (of the 12%)
Employee Provident Fund (EPF)	Full amount	3.67% (of the 12%)
Example Monthly Salary: 12,000
Total Contribution	12,000 * 12% = 1,440	12,000 * 12% = 1,440
EPS0	0	12,000 * 8.33% = 999.60
EPF	1,440	12,000 * 3.67% = 440.40

Employee’s Contribution towards EPF

In general, the contribution rate for the employee is fixed at 12%. However, the rate is fixed at 10% for the below-

mentioned organizations:

Organizations or firms employing a maximum of 19 workers.
Industries declared as sick industries by the BIFR
Organizations suffering an annual loss much more as compared to their net value.
Coir, guar gum, beedi, brick and jute industries.
Organizations operating under the wage limit of 6,500.

Eligibility Criteria for Registration under Provident Fund

Any organization or factory with at least 20 employees needs to get them registered under EPF Scheme.
Establishment with less than 20 employees may get themselves voluntarily registered.
Liability to deduct and deposit EPF arises for all employees with wages of Less than 15,000 per month,
Employees of an organization, which are already registered under EPF Scheme, are directly eligible for getting their Provident Fund account opened from date of their joining.
Employees need to become an active member of the scheme in order to avail of benefits under this scheme.
Employees of an organization are directly eligible for availing Provident Fund, insurance benefits as well as pension benefits since the day they join the organization.
Any organization employing a minimum of 20 workers is liable to give EPF benefits to the workers.
This scheme does not cater to the needs of people residing in Jammu and Kashmir.

Benefits of EPF scheme

There are many benefits of registering to the EPF scheme, some of these are:-

Amount deposited in EPF Account is a savings that can be withdrawn at any

time for any purpose such as Education, Marriage, Medical emergency or same

can be obtained post retirement.

If you withdraw the PF amount and interest on its maturity or after 5 years of

completion of continuous employment, then its entire amount will be exempted

from any Income tax liability.

If the employee leaves the organization then he/she can withdraw 75% of the

balance lying in EPF account on completion of one month of continuous

unemployment. Balance 25% can be withdrawn post continuous employment

period of 60 days.

Unlike before, EPF accounts are created and maintained completely online and

the employees can have access to their EPF funds anywhere in the world

with universal account number.

In case of death of the employee the nominee will get the PF amount and

interest accumulated over the period.

Just like the ESI scheme, the Employees Provident Fund (EPF) is a Contributory fund with contributions from both the employee and their employers.

While the focus of the ESI scheme is healthcare, Provident Fund is focused towards post Retirement Income and Benefits.

EPF is a compulsory and contributory fund for Indian organizations under “The Employees’ Provident Fund and Miscellaneous Provisions Act 1952”.

EPF registration is mandatory for all establishments-

Which is a factory engaged in any industry having 20 or more persons, and
To any other establishment employing 20 or more persons or class of such establishments which the Central Government may, by notification specify in this behalf.

Central Government may apply any establishment employing less than 20 employees after giving not less than two months’ notice for compulsory registration

Where the employer and majority of employees have agreed that the provisions of this act should be made applicable to the establishment, they may themselves apply to the Central PF Commissioner. The Central PF Commissioner may apply the provisions of this Act to that establishment after passing the notification in the Official Gazette from the date of such agreement or from any subsequent date specified in the agreement.

Some establishments having less than 20 employees would also be required to obtain PF registration but that is voluntary registration. All the employees will be eligible for a PF from the commencement of their employment and the responsibility of deduction & payment of PF lies with the employer.

Contribution Rate (%)	Employee’s Contribution Rate (%)	Employer’s Contribution Rate (%)
A/c No. 1: PF Contribution Account*)	12.00	3.67
A/c No. 2: PF Admin Charges Account	–	0.50
A/c No. 10: EPS Contribution Account	–	8.33
A/c No. 10: EPS Contribution Account	–	8.33
A/c No. 21: EDLIS Contribution Account	–	0.50
EPS0	0	12,000 * 8.33% = 999.60
Total Contribution	12.00	13.00

Monthly payable amount under EPF Administrative charges is rounded to the nearest rupee and a minimum of 500/- is payable.

Note: - If the establishment has no contributory member in the month, the minimum administrative charge will be 75/-

The contributions are payable on maximum wage ceiling of 15000/-
The employee can pay at a higher rate and in such case employer is not under any obligation to pay at such higher rate.
To pay contribution on higher wages, a joint request from Employee and employer is required [Para 26(6) of EPF Scheme]. In such case employer has to pay administrative charges on the higher wages (wages above 15000/-).
For an International Worker, wage ceiling of 15000/- is not applicable.

Benefits of EPF Scheme for employers

The most primary advantage of the EPF registration is that you can cover the monetary risks of your employees along with their dependents that might occur owing to retirement, ill-health or their decease. As it is one person, one account: another key benefit is that the PF account that it’s firm and movable. It may be easily carried forward by your employee at another place of employment.

Achieving Long-term objective: Numerous long-term aims such as children’s wedding or their upper education that have need of the critical availability of finances. Now, here the accrued PF amount will prove useful on such occurrences.

An amount of deposit in provident fund is eligible for tax exemption under Section 80C of Income Tax Act,1961. The government has raised the threshold limit of tax-exempt contributions to the Provident Fund (PF) to 5 lakh (from 2.5 lakh announced in Budget 2021), subject to certain conditions. This increased tax-exempt limit is applicable to only those PF contributions where there is no employer contribution. In the case of government employees, there is such a fund called General Provident Fund where the government does not contribute. Rather, the government's contribution goes to the pension fund of the employees. As there is no contribution by the employer (i.e., the government), employees of the government sector can contribute a maximum of 5 lakh into their PF accounts in a financial year to earn tax-exempt interest.

However, the limit for private-sector employees shall continue to be 2.5 lakh (EPF + VPF) as the employer needs to contribute towards Employee Provident Fund.

Benefits of EPF Scheme for employees

EPF scheme is among one of the largest and biggest saving schemes available to Indian employees. The key benefits of the scheme are mentioned below:

Tax Benefits

The interest rate earned on the EPF account is eligible for tax exemption under Section 80C of the income tax act upto 1.5 lakh. Also, even multiple transactions from the EPF account would not lure any taxes for five years unless the employee voluntarily opts to resign from the job or terminate his/her tenure. Any contribution towards the EPF account doesn’t attract any tax liabilities.

Easy transferability

With Universal Account Number (UAN) at the disposal, the employees would have access to their PF account through the online portal of EPF. This would let them coordinate their EPF account with different employees during their service life.

Long-Term Financial Security:

Funds deposited in this account cannot be withdrawn easily and hence, helps in ensuring savings.

Retirement Period:

The accumulated fund under this scheme may be used at the time of retirement of the employee. This provides relief to the retired employee in the form of monetary security.

Unseen circumstances:

The accumulated fund can be used by the employee in case of any kind of emergency. The employee may choose to withdraw his/her fund prematurely. The scheme provides for such pre-term withdrawals in certain special cases.

Unemployment/Income Loss:

In case, where the employee loses his/her current job owing to any reason, then these funds may be used to meet expenses.

Resignation/Quitting of Job:

The employee post-resignation is free to withdraw his/her 75% of the EPF fund after one month of the date of having quit the job and remaining 25% after 2 months of unemployment.

Death:

In case of death of the employee, the collected amount along with the interest is given to the employee’s nominee thus helping the family tide through difficult times.Accumulation plus interest upon retirement, resignation, death.

Disability of the employee:

If the employee is no longer in the position to work then he/she may use these funds to help him/her get over the difficult time.

Lay-off:

In cases of sudden layoffs or retrenchment from the job, this fund may be used by the employee until the time he/she gets another suitable job.

Pension Scheme:

The employer not only contributes towards the PF fund but also makes the necessary contributions towards the employee’s pension which can be later used by the employee post-retirement.

Insurance Scheme:

The act also provides for certain provisions whereby, the employer is required to make certain contributions towards an employee’s life insurance where group insurance cover is not present. This scheme ensures that the employees are properly insured.

Accessible All Over:

With the help of the Universal Account Number (UAN), employees can easily get access to their PF account via the EPF member portal. They can transfer their accounts whenever they make a shift in their current jobs.

Partial withdrawals

Partial withdrawals allowed for specific expenses such as house construction, higher education, marriage, illness etc.

Employee Provident Fund (EPF)

The Employee Provident Fund (EPF) is a scheme in which both the employee and employer of an organization contribute certain amount for retirement benefits of the employee.

Every organization having 20 or more employees is required to register with the Employee Provident Fund Organization (EPFO). Both the employee and employer are required to contribute 12% of the basic pay to the EPF account. The entire 12% of employee’s basic pay is contributed to EPF account. The employer’s contribution is also 12% of the basic pay but only 3.67% of it is directed towards the EPF and the remaining 8.33% is contributed in the Employee Pension Scheme. The money contributed by employee and his employers is used as retirement funds for the employee. The employee can also withdraw this amount partially before his retirement.

Employers will not be able to generate the Electronic Challan cum Return (ECR) or EPF challan online in case the establishment is not registered. The employer will also need to register to create the User ID and password in order to access the details on the EPFO portal. Hence it is mandated for the employer to register online. All new registrations must be made online as the offline registration process has been done away with.

Universal Account Number (UAN)

The Employee Provident Fund Organization allots a unique Universal Account Number i.e. UAN to every employee. This UAN is linked to their EPF account. This UAN is valid throughout the employee’s life. An employee doesn’t need to change his UAN or transfer his EPF account in the event of job change. He just needs to update the employer details.

Rate of interest on EPF

The rate of interest on EPF is decided by EPFO on yearly basis. The Central Board of trustees of EPFO has recommended 8.50% of rate of interest for EPF accounts for the financial year 2020-21. Interest will continue to accrue of EPF accounts till the account becomes inoperative. The account becomes inoperative when the employee retires from his service or shifts to abroad permanently or dies or if the withdrawal application is not made within 36 months.

EPF Monthly Returns:

Every employer who is registered with EPFO has to file monthly EPF returns mandatorily. EPFO has launched online receipt of Electronic Challan cum Return (ECR) is April 2012. Employers are required to register their establishment and generate user id and password under the EPFO portal. The registered employer can upload electronic return on portal. Online challan will popped based on uploaded return after employer’s approval. The employer can make payment through internet banking. The EPF return must be filed by the 15th date of next month. For example, the due date of EPF return for March, 2021 is 15th April, 2021.

Prerequisites for filing monthly EPF Returns:

EPF returns can be filed by employer only. Before filing the returns, employer has to do 4 important things–

KYC Details: Before filing the returns, the employer has to take KYC details of every employee working in his organization. The KYC details include Aadhar card details, PAN No and Bank details with proof.
PF Calculations: The employer is required to do the PF calculations of every employee from the salary statement. These calculations include calculation of employee’s contribution, calculation of admin charges, EDLI charges, EPF wages and EPS wages.
Generate UAN: The employer has to generate Universal Account Number i.e. UAN of every employee through EPFO portal.
Mark Exited Employees: The employer has to mark exited employees from the portal i.e. employee who has left the company. For example, if current month is March, then you have to mark the exit date of employees who has left the company in February.

EPF ECR File

After obtaining registration under EPF/ESIC Act, adding, deleting or modifying records of Employees on regular basis is also essential.

Computation of ESIC and EPF liability and ensuring that the same is deposited within due date Filing returns under EPF and ESIC.

EPF ECR file also known as the PF calculation sheet which is used to create EPF contributions text file and it is further used to create monthly EPF challans.

Fields present in EPF ECR File Format

S No	Field Name	Details
1	UAN	Here we have to put the UAN number of the employee
2	Member Name	Here we have to write the member name
3	Gross Wages	This is also new in the ECR file, here we have to add the gross wages of employees
4	EPF Wages	Basic wage of employee has to be entered
5	EPS Wages	Basic wage of employee has to be entered
6	EDLI Wages	Basic wage of employee has to be entered
7	EPF Contribution Remitted	12% of employee contribution
8	EPS Contribution Remitted	8.33% of employer contribution
9	EPF EPS Difference Remitted	Generally it 3.67% of employer contribution towards PF, when the basic wage of an employee is greater than 15000 then it will automatically calculate the PF contribution of employer
10	NCP Days	Non contribution period days of employee i.e. absenteeism days.
11	Refund Of Advances	If is there any advance taken by the employee from the PF account, then he can repay that amount here.

The major differences in Old ECR format and the new UAN based format are Universal Account Number; in the ECR text file 2 version, UAN is mandatory and in the old format we don’t need to add a UAN number. Another main difference is gross wages entry, in the old ECR format there is no need to add gross wages but in the new ECR file we as employer have to show gross wages of employees also.

Aadhaar Seeding Mandatory for all EPF Accounts- June 1, 2021

As on 1st June 2021, EPFO has announced that Aadhaar Seeding is mandatory for all EPF accounts. Employers have been directed that ECR (Electronic Challan cum Return) is allowed only for accounts where the employee’s Aadhaar is seeded. This means if your Aadhaar is not linked to your EPF account, the employer’s contribution will not get credited to your EPF account. This decision has been taken under Section 142 of the Social Security Code 2020.

Contributions above 2.5 lakh per annum towards EPF would now be taxed. This will be effective from 1st April 2021, i.e. the new financial year.

The reason stated behind this new development is to better organize the tax exemption availed by those who fall in the high-income groups.

EPFO, on March 4th, 2021, announced the EPF rate of interest at 8.50%, keeping it the same as of the previous year 2019-20. To receive EPF interest, subscribers should make sure that there KYC details are updated and correct as per their PAN and bank records. Due to KYC mismatch, the interest payment of approximately 40 lakh subscribers for the financial year 2019-20 was delayed.

Universal Account Number or UAN

Every employer liable to get himself registered under EPF Scheme is required to get all its employees, liable for deduction of EPF, registered on EPF Portal. The Employee Provident Fund Organization (EPFO) allots unique Universal Account Number (“UAN”) to all employees. UAN is a 12-digit Account Number. The UAN of an employee remains the same throughout life irrespective of the number of jobs he/she changes. Every time an employee switches his/her job, EPFO allots a new member identification number (ID), which is linked to the UAN. You can put in a request for a new member ID by submitting the UAN to the new employer. Once the member ID is created, it gets linked to the UAN of the employee.

Features of UAN

The UAN helps to centralize employee data in the country
One of the most significant uses of this unique number is that it brings down the burden of employee verification from companies and employers by EPF organization.
This account made it possible for EPFO to extract the bank account details and KYC of the member and KYC without the help of the employers.
It is useful for EPFO to track multiple job switches of the employee.
Untimely and early EPF withdrawals have reduced considerably with the introduction of UAN.

Advantages of UAN to employees

Every new PF account with a new job will come under the umbrella of a single unified account.
It is easier to withdraw (fully or partially) PF online with this number.
The employees themselves can transfer PF balance from old to new account using this unique account number.
Any time you want a PF statement (visa purpose, loan security, etc.), you can download one instantly – either by logging in using the member ID or UAN or by sending an SMS.
There is no need for new employers to validate your profile if the UAN is already Aadhaar and KYC-verified
UAN ensures that employers cannot access or withhold the PF money of their employees.
It is easier for employees to ensure that his/her employer is regularly depositing their contribution in the PF account.

Documents required for opening UAN

If you have just joined your first registered company for a job, you need the following documents to get your Universal Account Number.

Bank account info:

Bank Name
Account number,
IFSC code
Branch name

ID proof:

Any photo-affixed and national identity cards like driving license, passport, voter ID, Aadhaar, and SSLC Book

Address proof:

A recent utility bill in your name, rental/lease agreement, ration card or any of the ID proof mentioned above if it has your current address

PAN card:

Your PAN should be linked to the UAN.

Aadhaar card:

Since Aadhaar is linked to the bank account and mobile number, it is mandatory

Check UAN Number

There are two ways in which you can find out your UAN number. The first is by getting it through your employer through offline mode and the second way is to find it by using the UAN portal:-

Checking your UAN with your employer

Normally, in case of your first employment, your employer will notify you about your Universal Account Number. However, if, for some reason, you don’t have a record of it, your UAN number is printed on your salary slip from the time your company starts deducting your salary towards PF contributions. This is the most common protocol followed by Indian companies, making it easy for you to check your UAN right on the salary slip.

Finding your UAN on the website

Log on to the UAN portal www.unifiedportal-mem.epfindia.gov.in/memberinterface

Click on the ‘Know your UAN Status’ tab.
Post clicking, the system will ask you to enter your registered Mobile number and captcha appears on screen. After entering your mobile number, click on “Request OTP”.
System will send an OTP to a registered mobile number.
Upon validation of OTP, system will ask you to enter basic details such as Name, Date of Birth and Aadhar Number/PAN/Member ID and captcha appearing on screen.
Upon entering valid information, the system will display UAN allotted to assessee.

4 ways to check your PF balance with UAN

Employers generally share your PF balance status once every year, normally at the end of each financial year. However, in case you don’t want to wait that long or want to check your PF balance on a monthly basis, then you can do that at your convenience using your UAN number via any of these 4 simple paths.

Check UAN Number

Check PF Balance Using EPFO Portal

Go to www.epfindia.gov.in and select the ‘For Employees’ tab under ‘Our Services’. A Member Passbook Facility page will open. Enter your UAN number and password based on your credentials here and you will immediately get access to your passbook. Members of establishments who are exempted under the EPF Scheme, 1952, will not be allowed to access the passbook facility.

Check PF Balance Using SMS Facility

Message EPFOHO “UAN” to 7738299899. Once the message is successfully sent, keep selecting the options and reply based on the messages you receive and within minutes you will get your balance via SMS.

Check PF Balance Using Missed Call Facility

Give a missed call on 011-22901406 from your registered mobile number and the balance details will be sent to you as a SMS.

Check PF Balance Using UMANG App

Download the app of EPFO and click on the option ‘‘Employee Centric Services’. Enter your UAN and log in using the OTP sent to your mobile number. Then you can check your EPF passbook, raise a claim or track any claims you have initiated.

Link Aadhaar with UAN

Offline mode of Aadhar Updation

EPFO has developed an Aadhaar Linking Application Form and you will need to fill it using your UAN, Aadhaar number, and other required personal details. You will also have to attach self-attested copies of your UAN card, PAN card, and Aadhaar card with this form. Then you can submit all the documents at the field offices of EPFO or Common Services Centers (CSC). Once verified and registered your Aadhaar will be linked to your UAN and you will get notified about the same via SMS.

Online mode of Aadhar Generation

To link your Aadhaar on the website, you will just have to enter your UAN number and your mobile number to generate an OTP. On entering the correct OTP, you will be asked to enter your Aadhaar number and specify your gender. Choose the OTP verification after this step to successfully generate and verify your Aadhaar. Once done click ‘Submit’. Your Aadhaar will be linked to your UAN within 15 days.

Facilities that is available to members using the UAN

Access Passbook
Obtain UAN Card
List of previous member IDs
KYC Details
Edit personal details
Withdraw balance in EPF Account

Facilities that is available to members using the UAN

UAN number remains the same till the time you are employed whereas the EPF number is generated every time when the employee changes the job.
You can access your provident fund account online by the help of UAN number whereas in case of EPF there is no such facility is there.
In case of UAN number you can make a withdrawal request without the signature of your employer where as in EPF employer signature is compulsory for withdrawal request.
UAN number can be linked with Aadhaar card number which is very useful whereas the EPF you cannot link it with Aadhaar number.
In case of job change no need to transfer the provident fund amount from old employer to new employer in case of UAN number. Just give the UAN no to the new employer and the contribution would be done on the same account. Whereas in case of EPF you are supposed to transfer the amount from old account to new account, this can take much longer and is full of hassles.

EPF Registration for Employers – EPF Employer Login, Registration

Online registration is important for employers as they deduct the TDS from employees’ salary. In order to register online, you will be required to create an account first. PF registration is obligatory for companies with more than 20 employees.

EPF registration is mandatory for all establishments-

which is a factory engaged in any industry having 20 or more persons, and

to any other establishment employing 20 or more persons or class of such establishments which the Central Government may, by notification specify on this behalf.

The employer must obtain the registration within 1 month of attaining the strength, failing which penalties will be applicable.0020 A registered establishment continues to be under the purview of the Act even if the employee strength falls below the required minimum.

Central Government may apply the provisions to any establishment employing less than 20 employees after giving not less than two months’ notice for compulsory registration. Where the employer and majority of employees have agreed that the provisions of this act should be made applicable to the establishment, they may themselves apply to the Central Provident Fund (PF) Commissioner.

The Central PF Commissioner may apply the provisions of this Act to that establishment after passing the notification in the Official Gazette from the date of such agreement or from any subsequent date specified in the agreement. Some establishments having less than 20 employees would also be required to obtain PF registration but that is voluntary registration.

All the employees will be eligible for a PF from the commencement of their employment and the responsibility of deduction & payment of PF lies with the employer. The PF contribution of 12% should be divided equally between the employer and employee. The employer’s contribution is 12% of the basic salary. If the establishment has employed less than 20 employees, the PF deduction rate will be 10%.

EPF Registration Procedure

The employer must register the establishment online. With the convenience of online registration the employer can register the establishment by providing the following details:

Establishment details

The establishment details to be provided are the Name of the establishment, Address, Incorporation Date, PAN and Type of establishment
If the establishment is a factory then the details to be provided are the Factory License Number, Date of License and Place of issue of License.

If the establishment is an MSME then MSME registration details to be provided.
If the establishment is registered under Startup India, then the Startup India registration details are to be provided.

eContacts

The employer must provide email id and mobile number of the authorized person.

Contact Person

Employers must provide details of the contact person like a manager. The details required are: Name, Date of Birth, Gender, PAN card, Designation date of joining and address details.

Identifiers

The identifiers are the license information that the employer needs to provide.

Employment details

The employment details required to be provided are the Employee strength, Gender, Type of activities, Wages above limit and Total wages.

Branch/Division

Branch details such as name/premise number, LIN (Labour Identification Number) and address.

Activities

The employer needs to enter the NIC Code (National Industrial Classification) and select the nature of business and the activities included from the drop down lists available.

Steps for EPF Registration for Employers- New Registration

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Visit the EPFO Website
To register the organisation, the employer will need to visit the EPFO portal, which is https://www.epfindia.gov.in/site_en/index.php and click on the option that says, ‘Establishment Registration’.

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Select Establishment Registration
Clicking on ‘Establishment Registration’ will lead you to the next page, which is https://registration.shramsuvidha.gov.in/user/register, where the manual can be downloaded. The user manual must be read completely by a new user before registration.

Select Download Manual
Click on ‘Sign Up’ Button.

Select Sign-up Button
Clicking on ‘Sign Up’ will ask for the Name, Email, Mobile Number, and Verification Code to be filled. After these details are filled, click on ‘SIGN UP’ to create your account.

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Enter Basic Details
There will be an option called ‘Registration for EPFO-ESIC’

The next page will give you an option called ‘Apply for New Registration’. Clicking on that will give two options called ‘Employees’ State Insurance Act, 1948’ and ‘Employees’ Provident Fund and Miscellaneous Provision Act, 1952’, which can be checked and then click on the ‘Submit’ button

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Apply for New Registration-
This leads you to a page where the details of the employer such as Establishment Details, eContacts, Contact Persons, Identifiers, Employment Details, Particulars of workers, Branch/Division, Activities, and Attachments are mentioned. All mandatory details that must be filled under each section are displayed with a red asterisk.
The summary of the registration form can be viewed on the dashboard.
Click on the ‘Submit’ button to submit the registration.
Click on Submit Button
This is followed by the employer’s Digital Signature Certificate (DSC) registration. For a fresh EPF registration application, DSC registration is mandatory.

Attach DSC
After filling all the “Registration Form for EPFO” and attaching the relevant documents, the employer’s Digital Signature Certificate (DSC) is to be uploaded and attached to the form. Once, the DSC of the employer is uploaded, the employer will receive a successful completion of registration form message and an email from Unified Shram Suvidha Platform with a confirmation that theEPFO registration has been completed.

Employees’ Provident Fund Registration-For already registered users

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To register with EPF scheme go to the Employee Provident Fund Organisation (EPFO) websitehttp://www.epfindia.gov.in/site_en/index.php.

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Go to the section of ‘Establishment Registration’ that opens up a new page with ‘Instruction Manual’. It will explain the process of Employer Registration, followed by registration of DSC [Digital Signature Certificate] of the Employer which is a prerequisite for fresh application submissionBefore registering, you will be provided with the instruction manual and read the details carefully

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For already registered users log in to the portal using your credentials- username and password. The instruction manual will appear describing the procedure followed by Digital Signature Certificate (DSC).

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Click on “I have read the instruction manual” and proceed to fill up all the details to register.

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An email link and pin will be sent to your given email address and phone number, clink on the link to activate your email address and phone.

Upload the required documents, to get yourself registered. Those who are already registered can log in using their Universal Account Number (UAN)

EPF UAN Activation

To activate UAN, you must have your Universal Account Number and PF member ID with you.You need to visit the EPF Members (Employees) Login to EPF website of EPF e-SEWA/EPF Members Portal and on the right side, you have the option to login using UAN. However, UAN must have been activated earlier. Universal Account Number (UAN) is a 12 digit number which is provided to each member of the Employees’ Provided Fund Organization (EPFO) through which he can manage his PF accounts. It helps the person to get all Provided Fund (PF) information in one place irrespective of the organization he works for. With the help of UAN, the employee can easily withdraw and transfer funds.

In order to activate your UAN, follow the steps given below:

Step 1: You need to visit the member website of EPF i.e. EPF e-SEWA/EPF Members Portal

Step 2: On the right corner below, you will find the option of ‘Activate UAN’ and click on it

Step 3: As the new dashboard opens up, enter either UAN, PAN, Member ID or Aadhar and other details as Name, Birth date, etc. according to EPFO records

Step 4: Enter the ‘captcha’ code and get an authorization PIN on your registered mobile with EPFO

Step 5:Use the One Time Password (OTP) to validate and activate the UAN online

Step 6: Another message will be sent to confirm activation of the UAN

Step 7: Once UAN is activated, you can log in using it to check the status of the Provident Fund

Step 1: Visit EPF Members Portal and log in using UAN & Password

Step 2: As the new page opens up, under the section of ‘Manage’, click on KYC from the dropdown menu

Step 3: Update the details like name and number of PAN, Aadhar, Bank documents, etc.

Step 4: Save it and it will show as Pending KYC as long as it is verified from the other end

Update mobile number in EPF account

Visit the EPFO e-SEWA portal.
Go to the ‘Manage’ section and click on ‘Contact details’ in the drop-down menu
Click on ‘Change mobile number’.
Then enter the new mobile number and re-enter it.
Next, to authorize this information, click on ‘Get authorizations PIN’
. Enter the OTP received on your mobile number and click on ‘Save changes’ to complete the process.

Steps to check EPF Balance

A member can check the EPF balance accumulated in the account online by following these simple steps:

Step 1:Visit EPF’s website at www.epfindia.gov.in

Step 2: Go to ‘For Members’ in the “Our Services” section

Step 3: Click on the ‘Member Passbook’ option

Step 4: Now enter your ‘UAN’, password and captcha code and login to your EPF account

Step 5: Select the ‘Member ID’ to view your passbook

Step 6: Your passbook will be displayed with complete details in the document

Step 7: The member can also check his EPF balance by sending an SMS to ‘7738299899‘ in the format EPFOHO ENG

EPF Forms

Different EPF forms are mandatory for all activities that employees wish to undertake in their accounts; the activities include registration, withdrawal, and transfer of PF, availing loans from an existing EPF account or for any other reason.

EPF Form	Use of the EPF Form
Form 31	EPF Withdrawal
Form 14	Buying LIC Policy
Form 10D	For claiming monthly pension
Form 10C	For claiming withdrawal benefits/scheme certificate of EPS
Form 11	EPF Account Transfer
Form 19	Final Employees’ Provident Fund Settlement
Form 20	EPF Final settlement in case of death of the employee
Form 2	Declaration and nomination form for EPF & EPS
Form 5 IF	Claim as per EDLI scheme
Form 15G	To save TDS on the interest income on EPF
Form 5	New employees registering for EPF and EPS
Form 11	Auto transfer of EPF

PF Payment Online

Employee Provident Fund Scheme is one of the most useful employee beneficial schemes introduced by Ministry of Labor. It is one of the ideal retirement funds. It is a type of savings account where both employer and employee contribute an equal amount at regular intervals. Such contribution can be made only by those employers who are registered and employees of registered employers. Employer registration can be either through statute mandate or voluntary.

As per the PF Act, every company/organization employing more than 20 individuals, including employees who are on contract, is mandatorily required to register under PF Act. Once the PF Act is applicable, the employer’s organization continues to be governed by the PF Act even if the number of employees falls below 20 at any time.

Further, it is not mandatorily apply to all employees of registered establishment. Only such employees earning up to 15,000 are eligible to be covered under the PF Act and can make contribution. Both employer and employee, who are not mandated by PF Act, can voluntarily register and contribute for PF.Though contribution to PF account is made both by employer and employee, payment is to be made to PF account by employer who is registered with PF Act.

From September 2015 it is mandatory for all establishments to pay PF online. Online PF payment can be made by the employer either on EPFO website or through authorized bank website (if bank allows direct payment through their website) in which employer has an account and net banking.

Presently EPFO has tie up arrangement with 10 banks to collect EPFO dues and banks are SBI, PNB, Indian Bank, Bank of Baroda, HDFC Bank, ICICI Bank, Axis Bank and Kotak Mahindra Bank.

In case the employee’s PF contribution was deducted but not deposited by the employer, it will not be allowed as a deduction for the employee with effect from A.Y. 2021-22. The government has decided to retain the EPF interest rate of 8.5% for the financial year 2020-21.

ECR stands for Electronic Challan cum Return. This is an electronic monthly return to be uploaded by the employers through the Unified Portal.

The return will have member wise details of the wages and contributions; including basic details for the new and existing members (members who have joined or have left service in the wage month for which the return is uploaded). The approval of uploaded ECR will result in the generation of a Challan using which the employer has to remit the dues in the designated branches of SBI. In this way, each ECR will be linked with a remitted Challan and the ECRs uploaded but not remitted will lapse after 12-15 days of the generation of the challan.

The monthly upload of ECR will relieve the employer from manual filing of returns; both monthly and annually. If you upload the ECR, there is no need to file Forms 5/10/12A, 3A, and 6A.The upload of ECRs that are backed with remitted Challan in the EPFO application will result in the updating of member balances on a monthly basis. This information will be shared with the members through the Know Your PF Balance link.

Employers will get the confirmation of payment through SMS instantly. The members’ accounts will be credited with the contribution on monthly basis. Employers can view the annual accounts slip. For earlier years employers can request for the annual slips through this portal.

Step By Step Process to File ECR (Electronic Challan cum Return)

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Login to unified portal of EPFO using your Electronic Challan cum Return (ECR) portal credentials https://unifiedportal-emp.epfindia.gov.in/epfo/. Login to EPFO portal using your ECR portal credentials: Once logged in, you can check the details of Establishment Name, Establishment ID, Exemption Status (PF, Pension, EDLI), Establishment Address and PF office.-

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Ensure PF details of establishment such as establishment ID, Name, address, exemption status, etc. shown are correct. From ‘Payment’ option drop down select ‘ECR upload’ i.e. To upload ECR, go to Payments tab >> ECR [UPLOAD]

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On next screen, i.e. ECR File Upload, click on ‘ECR Help File’ to view the ECR file format To upload the ECR, Select ‘Wage Month’, ‘Salary Disbursal Date’, Rate of contribution and upload ECR text file

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Select your ECR text file to be uploaded. An ECR text file appears. Select the remaining fields like File Type (Select ECR), Contribution Rate % (Default value is 12%), add comment, and click on Upload Button:

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Uploaded ECR file will be validated for predefined conditions and a screen will appear with a message ‘File Validation Successful’. If ECR file is not validated, error will throw up i.e. if uploaded ECR file fails, you will get an error message. Correct the ECR text file for the specified format and upload again till it is successfully validated.

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Once uploaded, the file will be validated by the portal against the pre-defined conditions. Once validation is successful, you can see the following screen with ‘Validation Successful’ message: Click on Verify button to generate TRRN (Temporary Return Reference Number).
In the same page TRRN generated will be displayed for the uploaded ECR file. Click on ‘Verify

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Generate ECR summary sheet by clicking on ‘Prepare Challan’ button.

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On the next screen, you can adjust “Total EDLI Contributions (ER Share A/C 21)” (if required), enter Administration & Inspection Charges for “Total EPF Charges (A/C 2)” & “Total EDLI Charges (A/C 22).” Once done, click on ‘Generate Challan’ Button.

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Select payment mode as ‘online’ and choose from any of the banks appearing in drop down menu and click on ‘continue’. This action will take you to your bank’s internet banking login website where you need to login and make payment through net banking

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Presently EPFO has tie up arrangement with 10 banks to collect EPFO dues and banks are SBI, PNB, Indian Bank, Bank of Baroda, HDFC Bank, ICICI Bank, Axis Bank and Kotak Mahindra Bank.

On successful payment, Payment/Transaction-id will be generated and e-Receipt for transaction confirmation will be populated. You can also download Acknowledgment File and Receipt File under “In-Process Challan List”. The finalized ECR (Electronic Challan-cum-Receipt) will be updated at EPFO Portal.

Provident Fund (PF) Due Dates

The PF will be deducted from every employees’ salary, and the payment due date is within the 15th of the following month. E.g., if you want to deposit the PF contribution for June, then as an employer you should clear all the payments before the 15th of July. Payment and filing for the PF return date are probably the same, and you can process it at the same time.

Therefore, the due date of the PF return is the same as the payment date, and that is before the 15th of the following month. The PF annual return due date is 25th April of the following year.

Late Fees/Interest- Delay in the deposition of Provident Fund: Interest

The person who fails to complete the payment within the given deadline shall be responsible for paying 12% per year interest for each day he has delayed.

Penalty

The EPFO has mentioned some charges that will apply to the late payment of the Provident Fund deposit. Here are the charges you shall look into

Period of Delay	Penalty
Delay upto 2 months	5% interest per annum
Delay of 2-4 months	10% interest per annum
Delay of 4-6 months	15% interest per annum
Delay of more than 6 months	25% interest per annum which can’t exceed 100% at a time.

Further, to promote the timely payment of ESI and PF to employees’ accounts, the income tax act also provides for disallowance of PF and ESI deposited after the due date. Accordingly, employers shall not get the deduction of EPF or ESI deposited after the due date under Income tax and they will end up paying income tax on it.

Steps to file EPF return

Download the list of Active Employees:

After generating the UANs and marking exited employees, the employer should download the list of active employees from EPFO portal and match the employees from your PF calculation sheet to active employees on portal so that no employee will be left out from the return.
To download the list of active employees: Login into EPFO Portal > Go to Dashboard > List of Active Members
Click on Search and the List of Active Members will appear
Download the list from Export to Excel option. Cross verify the downloaded sheet with your PF calculation sheet to match the employees

Download ECR file

For filing the return, the employer has to fill the ECR sheet provided by EPFO.
To download the ECR sheet: Go to Payments > Select ECR/Return Filing option > Select ECR Upload
The ECR Upload screen will open. Select Download ECR File option. Enter the month you are filing the return for and select file type from ECR or Arrear option. If you are filing a monthly return then select ECR option as a file type and if you are filing return for an employee who you missed while filing monthly return, then select Arrear as a file type. Click on ECR file download option.

Prepare the ECR sheet

You are required to fill all the details in downloaded ECR sheet. UAN number and Member Name fields will be pre-filled. Add the gross wages of employee from the salary statement in Gross Wages column. In EPF wages, add the basic wages + dearness allowance of employees. Next column is EPS Wages. The EPS Wages are calculated on EPF wages. EPS wages will be equal to EPF wages but maximum EPS wages are 15,000/- Even if the EPF wages for certain employee are 22,500/- his EPS wages will be 15,000/- only.
The next column is EDLI Wages i.e. Employees Deposit Linked Insurance wages. EDLI wages are equal to the EPS Wages. EPF Contribution Remitted is EPF contribution. In EPF Contribution column, you have to enter the 12% amount of EPF wages because EPF contribution is 12% of basic + DA of an employee’s salary. Enter the 8.33% of EPS wages in EPS Contribution Remitted column and difference between EPF contribution and EPS contribution in EPF EPS Diff Remitted column. In NCP (Non Contributing Period) Days column add the number of days the employee was absent in a month.
After filling all the details into sheet, calculate employer’s contribution. The employer’s contribution is also 12% but is it divided as 3.67% into EPF, 8.33% into EPS, 0.50% into EDLI and 0.50% into PF admin charges. These calculations will be needed while preparing challan. Refer to the image below for employer’s contribution calculation.

Prepare Text File

Copy all the details filled in the downloaded ECR sheet and paste them in a new excel sheet as value. Save this file as a .CSV (Comma delimited) format.
Open the saved .CSV file in Notepad. Press Ctrl + H and replace all commas ( , ) with # ~ # and save the file.

Generate Challan

Go to the Payments option on EPFO portal and select ECR Upload option. ECR Upload screen will open. Click on ECR File Upload option.
Fill in the details shown on ECR upload screen. In Wage Month column, select the month you are uploading the return for. Enter the salary disbursal date. Upload the created .txt file in Select File option. Select the file type either ECR or Arrear. Select the contribution rate. Add remark and press on Upload.d
After uploading the file, a text box will be shown on the screen if you have filled all the details correctly i.e. validation successful

Download the ECR Statement

Download the ECR statement from Draft ECRs column. Check all the details from statement. If the details in statement are correct, proceed further to verify the file.

Verify ECR

To verify the uploaded ECR file, click on Verify option from Draft ECR’s. If you are sure that you have filled everything correctly, click on verify, and press OK option on the dialogue box asking if you are user that you want to verify.
Verified ECR file will show in In Process ECRs list located just below the Draft ECRs. Select Prepare Challan option in Action Column.

ECR Summary

After selecting prepare challan option, ECR Summary screen will open. Here you will see all the details you filled in ECR file. These details include name and ID of your establishment, wage month, return month, total number of UANs, total gross wages, EPF wages, EPS wages, EDLI wages and NCP days. All the calculations in these fields will be automatically filled from the uploaded ECR file.

Administration Charges

In the Details column, total EPF contribution, EPS contribution, difference between EPF & EPS and total EDLI contribution by employer will be pre-filled. You have to define the Administration charges in Total EPF Charges (A/c 2).Administration Charges should be 500/- minimum.

Employer Details

In the Employer Details column, add the total number of employees in a month, number of excluded employees and gross wages of excluded employees and press Generate Challan button.
Click on 'create a challan' to generate challan.

Finalize Challan

A dialogue box stating successful challan generation will appear. We are required to verify and finalize the challan details for payment. Click on the Finalize option. The EPFO portal will ask if you are sure to finalize the challan. Press OK if you are sure.

Payment

After finalizing the challan, find your challan TRRN from the In-Process Challan List and click on Pay. A Challan Payment screen will open.
Select your bank, select Continue option and make payment through internet banking.

EPF Services on Umang App

Employee Centric Services	View Passbook Raise Claims Track Claims Get Remittance Details by Establishment ID Get TRRN Status
EPF General Services	Search Establishment Search EPFO Office Know your claim status Account Details on SMS Account Details on Missed Call
Pensioner Services	View Passbook Update Jeevan Pramaan
eKYC Services	Aadhaar Seeding

New EPF Withdrawal Rules 2021

The EPF account consists of contributions from the employer and employee. However, the money in an EPF account cannot be withdrawn at whim.

PF Withdrawal Rules 2021

The Employees’ Provident Fund Organization (EPFO) has revised several of its rules regarding withdrawal from the Provident Fund (PF) account in 2021. According to the new rules, PF account holders can withdraw money equivalent to three months of their basic salary plus dearness allowance or 75% of the net balance in their PF or EPF account, whichever is lower. This will be taken as a non-refundable deposit. These withdrawal claims can be raised online. Online claims are stipulated to be settled within 3 working days while offline claims can take up to 20 days for settlement.

Reasons	Eligibility	Withdrawal Limit
Housing Loan for construction or addition of house/purchase of site/flat	Minimum 60 months of service	Up to of 36 months of his/her basic along with DA/ the total of employee and employer shares with interest/ the total cost of the house
Marriage of self/son/daughter/brother/sister or for post matriculation education of children	Minimum 84 months of service	Up to 50% from the EPF account
One year before retirement	Should be above 54 years of age	Up to 90% of his/her EPF amount
Medical expenses/Natural Calamity/purchase of equipment by physically handicapped/closure of factory/cut in electricity in establishment	No minimum service tenure	Up to 6 months of his/her basic and DA/ the entire contribution

New EPF Withdrawal Rules 2021

The EPF account consists of contributions from the employer and employee. However, the money in an EPF account cannot be withdrawn at whim.

Here are 10 important rules about EPF withdrawal:

Money from the EPF account cannot be withdrawn during employment, unlike a bank account. EPF is a long-term retirement savings scheme. The money can be withdrawn only after retirement.
Partial withdrawal from EPF accounts is permitted in the case of an emergency such as medical emergency, house purchase or construction, and higher education. Partial withdrawal is subject to limits depending on the reason. The account holder can request online for partial withdrawal.
Although the EPF corpus can be withdrawn only after retirement, early retirement is not considered until the person reaches 55 years of age. EPFO allows withdrawal of 90% of the EPF corpus 1 year before retirement, provided the person is not less than 54 years old.
The EPF corpus can be withdrawn if a person faces unemployment before retirement due to lock-down or retrenchment.
The EPF subscriber has to declare unemployment in order to withdraw the EPF amount.
As per the new rule, EPFO allows withdrawal of 75% of the EPF corpus after 1 month of unemployment. The remaining 25% can be transferred to a new EPF account after gaining new employment.
As per the old rule, 100% EPF withdrawal is allowed after 2 months of unemployment.
EPF corpus withdrawal is exempted from tax but under certain conditions. Tax exemption on EPF corpus is permitted only if an employee contributes to the EPF account for 5 continuous years. The EPF amount is taxable if there is a break in the contribution to the account for 5 continuous years. In that case, the entire EPF amount will be considered as taxable income for that financial year.
Tax is deducted at source on premature withdrawal of the EPF corpus. However, if the entire amount is less than 50, 000, then TDS is not applicable. Keep in mind, if an employee provides PAN with the application, the applicable TDS rate is 10%. Otherwise, it is 30% plus tax. Form 15H/15G is a declaration form, which states that a person's total income is not taxable and thus, TDS is avoidable.
An employee does not have to await approval from the employer for EPF withdrawal anymore. It can be done directly from the EPFO, provided the employee's UAN and Aadhaar are linked, and the employer has approved it. EPF withdrawal status can be checked online.

Steps for EPF Withdrawal Online

Employees can make a PF withdrawal claim on the EPFO member portal by following the steps mentioned below. As already mentioned, if the employee has seeded his/her Aadhaar card details with one’s UAN account, they do not require the attestation of their employer to make a PF withdrawal.

Sign in to the UAN Member Portal with your UAN and Password.Visit the EPFO member portal.Choose the “For Employees” option under the “Our Services” tab.

On the new webpage click on the “Member UAN/Online Service (OCS/OTCP)” option under the “Services” tab of the “For Employees” page

This will redirect you to a new webpage. Log in to the portal using your UAN, password, and the Captcha code.

Click on the “KYC” option under the “Manage” tab.

You will be redirected to a new webpage. Scroll down to the bottom of the page to find the “Digitally Approved KYC” section and check your KYC details. Ensure the details are correct.

Click on the “Online Service” tab from the top menu to proceed with the withdrawal if all the KYC details are correct.

Click on the “CLAIM (FORM-31, 19 & 10C)” option from the drop down menu

You will be redirected to a new webpage with an automatically generated “ONLINE CLAIM (FORM 31, 19 & 10C)” form.

You will be required to enter the Last 4 digits of your registered bank account number and verify the same.

After the verification of the bank account, a “Certificate of Undertaking” will be generated. Click “Yes” on the certificate pop-up to proceed.

Click on the “Proceed for Online Claim” option when prompted.

For online fund withdrawal, select the “PF ADVANCE (FORM - 31)” option from the drop-down menu provided next to the “I want to apply for” option.

A reason for claim has to be selected from the drop-down options provided next to the “Purpose for which advance is required” option. It is worth noting that all options for which the employee is not eligible for withdrawal will be mentioned in red. The fields provided for the address of the employee and the amount for advance is also required to be filled up.

Click on the checkbox at the end of the page and submit your withdrawal application.You might be required to upload certain scanned documents (depends on the nature of withdrawal).

Once the employer approves the withdrawal request, the withdrawal amount will be withdrawn from the EPF account and will be deposited to the respective bank account. Once the claim has been settled, you will receive an SMS notification on your registered mobile number.

Although no formal time limit has been provided by the EPFO, the money usually gets credited within 15-20 days.

Steps to enter exit date and withdraw your PF easily

If the withdrawal of your Provident Fund (PF) is getting delayed, then it may happen due to the exit date not being mentioned. Hence, in order to avoid this, The Employees’ Provident Fund Organization (EPFO) has come up with a facility in the Unified Portal where the employee can enter the date of exit from the previous employer by himself. Prior to this only the employer could enter the exit date, but now even employees can enter the date of exit.

You can change the exit date by logging to the UAN portal using your Unified Account Number (UAN) and password. However, you must check whether the exit date is mentioned by clicking on ‘Service History’ under ‘View’ on the top panel.

Given below are the steps you will have to follow in order to enter the Exit Date:

Log in to your UAN portal using your Unified Account Number and Password
On the top panel, click on ‘Manage’ and click on ‘Mark Exit’ located under it
From the drop-down option choose the employer
You will be directed to a new page where you will have to enter your date of birth, date of joining, and date of exit. Mention the date of exit as the one mentioned in your resignation letter if your exit date is before the 15th day of the month

Tax-Free Limit for PF Withdrawals

When you make PF withdrawals, you can enjoy tax exemptions. However, this is applicable only when you make a withdrawal after offering 5 years of continuous service. It is also determined by the tax slab that is applicable to you. If you withdraw your PF balance before the completion of 5 years, then tax deducted at source (TDS) or tax will be applied on your funds.

However, no tax will be levied on EPF withdrawals before 5 years in certain cases depending on the situation. They are:

Transfer EPF Online

Step 1: Log in to the EPFO members’ portal using your UAN and password

Step 2: Go to the ‘Online Services’ tab on the main menu of the home page and select ‘Transfer Request’ to generate an online transfer request

Step 3: A new dashboard displaying all your personal details will be shown. Verify all of that like DOB, EPF and date of joining, etc. so as to claim the process

Step 4: Once you verify, go to Step 1, select the option of previous or present employer and then provide the details of the previous employer through which you want to claim

Step 5: Submit the details, an OTP will be sent to your registered mobile number. You need to authenticate your identity by entering the OTP, then only the request will be submitted and an online filled-in form will be generated. You need to sign the form and send it to your present or previous employer

Step 6: The employer will also get an online notification about the EPF transfer request. EPFO Office will process the claim only after employer digitally forwards the claim to the EPFO after verifying your employment details

Post submission of the request, you can check the status of your EPF transfer claim under the ‘Track Claim Status’ menu, which is under the ‘Online Services’ menu

Link your EPF account with Aadhaar online

You can easily link your Aadhaar to your EPF account online. Follow the steps given below:

Step 1: Visit EPFO member portal and login using your credentials

Step 2: Go to the ‘Manage’ option from the menu bar

Step 3: From the drop-down list, select ‘KYC’ option

Step 4: Select ‘Aadhaar’ from the list of documents

Step 5: Enter your Aadhaar Number and Name as per Aadhaar

Step 6: Save and proceed

Step 7: Your Aadhaar data will be verified with UIDAI’s data

On successful approval, your Aadhaar will be linked with your EPF account and you can see the Verified status written against your Aadhaar details.

EPF Tax Rules

EPF deposits and interest was completely exempt from tax until the year 2020. However, in Budget 2021, the government has announced that if the deposit in EPF and VPF (Voluntary Provident Fund) exceeds 2.5 Lakh in a financial year, then the interest earned on the contributions above 2.5 Lakh will be taxable.In case no contribution is made to the EPF account by the employer, then interest component will be exempt up to the deposit of 5 Lakh in the said financial year.

EPF on Umang App

Employee Centric Services	View Passbook Raise Claims Track Claims Get Remittance Details by Establishment ID Get TRRN Status
EPF General Services	Search Establishment Search EPFO Office Know your claim status Account Details on SMS Account Details on Missed Call
Pensioner Services	View Passbook Update Jeevan Pramaan
eKYC Services	Aadhaar Seeding

Aadhaar Card Necessary for EPF Account Nominees

According to the new rules released by the Employees’ Provident Fund Organization (EPFO), submitted the Aadhaar card number of the nominee is mandatory for e-nomination of your provident fund account. The newly established e-nomination function on EPFO which not just requires the subscribers to link their Aadhaar card with the account but also mandates the submission of Aadhaar card number of the nominee. Apart from the Aadhaar card number, scanned images, Date of Birth and mobile number are some of the important details of the nominee/s which requires to be provided duly. However, the submission of bank details of the nominee remains optional.

Online Grievances Portal for PF Withdrawal

If you want to register any grievance regarding the services provided by the EPFO, you can visit the EPF grievance management system online. In this system, you can file a grievance, send a reminder, check the status of your complaint or grievance, upload your grievance document, or even change your password.

How to register a grievance?

You will have to go the EPFO Grievance Management System and click on ‘Register Grievance’.
You will then see a grievance registration form. Here, you will have to fill all the required fields accurately
You will need to choose your status from the drop-down option
Next, you will have to key in your PF number, your establishment, address of establishment, name of complainant, contact details, grievance details, etc. You can then enter the captcha code and click ‘Submit’.

Types of EPFO grievances

You can register a grievance when you face issues associated with:

Return of cheque or misplacement of cheque
Scheme certificate (10C)
Transfer of your PF accumulations (F-13)
Settlement of your pension (10-D)
Provision of PF balance or PF slip
Others

You can file a grievance online and then check its status on the portal itself. In case your complaint is not resolved within the stipulated period of time, you can send a reminder to them by clicking on ‘Send Reminder’. Here, you will need to enter your grievance registration number and password (if you have any).

Types of PF Withdrawals

Subscribers can make three different types of PF withdrawals on the EPFO member portal. They are:

Subscribers can make the above-listed withdrawals on the EPFO member portal with the attestation of their employer if they have seeded their Aadhaar card details with their UAN.

PF Withdrawal Rules

In order to ensure that employees continue to be enrolled in the scheme and avoid making withdrawals from their PF corpus and instead save it for the future or for retirement, EPFO has listed a number of PF withdrawal rules. They are as follows

All withdrawals made before completion of 5 years of continuous service are subject to tax. Withdrawals after completion of 5 years of continuous service in the EPF are tax-free.

In case the employee was terminated or is unemployed as a result of ill-health and so on, withdrawals will not attract tax.

If the employee makes a withdrawal before the completion of 5 continuous years in the scheme, the principal amount as well as the interest accrued, is subject to tax. That said, the amount will be taxable in the current financial year.

For withdrawals before completion of 5 continuous years towards the scheme, the employee will be taxed 30% of the principal amount and the interest accrued if he/she has not submitted their PAN to the EPFO authorities. If the employee has submitted his/her PAN details to the EPFO authorities, 10% TDS (tax deducted at source) will be applicable

Funds transferred from one’s PF account towards the National Pension Scheme (NPS) will not attract tax when one makes a withdrawal.

If the employee shifts jobs and in the process has different PF account, it will be considered as continuous service to the scheme provided there has been no gap in contributions.

Employees have to facilitate the use of the Composite Claims Form to make a partial withdrawal or a final settlement claim.

If the employee has seeded his/her Aadhaar card details with their UAN, they can submit the Composite Claims Form to make a withdrawal directly to the EPFO without the requirement of the attestation of their employer. Those who have not seeded their Aadhaar card details with their UAN have to submit the Composite Claims Form with the attestation of their employer to make a withdrawal.

The labor ministry has announced that EPF members can now withdraw twice from their EPF account to meet the emergency expenses arising due to the Corona virus pandemic. Members can avail a non refundable withdrawal of up to 75% of the amount available in their EPF account or 3 months of their basic wages and dearness allowance, whichever is lower. Furthermore, EPFO is set to settle these withdrawal claims within 3 days and has also created an auto-claim settlement process for members whose KYC is complete in all respects.

Withdrawal Procedure

With the amendments made by the Employees’ Provident Fund Organization (EPFO), now subscribers to the scheme do not require the attestation of their employer to make a partial or complete withdrawal. All that the subscriber has to ensure is that his/her UAN is seeded with their Aadhaar card details. The EPFO has also rolled out the Composite Claims Form, which can be used to request for a partial or complete withdrawal. Subscribers can carry out the whole process of making a withdrawal online either on the EPFO member portal or on the UAN portal.

PF Withdrawal Claim Forms
The PF Withdrawal Claim Forms that need to be submitted to withdraw the provident fund or pension fund vary based on the age, reason for making the claim, and whether or not the employee is still in service. Earlier, Form 19, Form 31, and Form 10C were used to make withdrawals. But recently, a composite claim form has replaced the above-mentioned forms. The forms that required the UAN details of the employee have now been replaced with a composite claim form that requires the Aadhaar details of the employee.As mentioned earlier, the PF claim form that needs to be submitted varies based on certain criteria.

Criteria's for PF Withdrawal

1) When an employee is still under service

If he/she wishes to take an advance from the PF account, the composite claim form (Aadhaar/Non Aadhaar) has to be submitted.
If he/she wishes to finance his/her LIC policy through the PF account, Form 14 has to be submitted.
If he/she has crossed 58 years of age and wishes to claim the pension fund.
Form 10D should be applied for a monthly pension if 10 years of eligible service has been completed.
The composite claim form (Aadhaar/Non-Aadhaar) should be submitted if 10 years of eligible service has not been completed.

2. When an employee switches the job and wishes to transfer EPF account, Form 13 should be applied

When an employee leaves an establishment and doesn’t join another
He/she can make a PF and pension fund claim using the composite claim form (Aadhar/Non Aadhar)
. Is above the age of 58, and has completed 10 years of eligible service, he/she can make a PF claim using the composite claim form (Aadhaar/Non-Aadhaar) and a pension claim using Form 10D

3. When an employee leaves an establishment due to a physical disability

He/she can make a PF claim using composite claim form (Aadhaar/Non-Aadhaar)
He/she can make a pension claim using Form 10D
. Is above the age of 58 and has not completed 10 years of eligible service, he/she can make the PF and pension claim using the composite claim form (Aadhaar/Non-Aadhaar).

4. When an employee is deceased while in service

Before the age of 58 while still in service, the nominee/heir/beneficiary can apply for the PF settlement using Form 20, monthly pension using Form 10D, and EDLI (Employees’ Deposit Linked Insurance) amount using Form 5IF.
After the age of 58 and had completed 10 years of eligible service, the nominee/heir/beneficiary can claim the PF using Form 20, the pension using Form 10D, and the EDLI amount using Form 5IF.
After the age of 58 and had not completed 10 years of eligible service, the nominee/heir/beneficiary can make the PF settlement using Form 20, withdraw the pension using the composite claim form (Aadhaar/Non-Aadhaar), and claim the EDLI amount using Form 5IF.

5. When an employee is deceased

Before the age of 58, the nominee/heir/beneficiary may claim the PF amount through Form 20 and pension amount through Form 10D.
After the age of 58 and had completed 10 years of eligible service, the nominee/heir/beneficiary can claim the PF amount using Form 20, and the pension amount using Form 10D.
After the age of 58 and had not completed 10 years of eligible service at the age of 58, the nominee, heir or beneficiary can apply for a final PF settlement using Form 20 and for the pension fund using the composite claim form (Aadhaar/Non-Aadhaar).

Reasons for PF withdrawal

The situations under which you can go ahead and withdraw money from your EPF while you are still working 1. Medical Treatment

You can withdraw money from your EPF account to meet the financial requirements of a medical treatment, provided it meets the following conditions:

Any major surgery in a particular hospital
The hospitalization period is more than a month
The individual is suffering from Tuberculosis, Leprosy, Cancer, Mental Derangement, Paralysis, heart problems, etc. and is on leave that has been granted by the employer for the mentioned illness You can actually withdraw the money in EPF at any given time during the period of your service. It is not needed that you have a complete a specific number of years in the organization to claim that money. You can always draw the money for treatment purposes, even if you have completed one or two years in your present organization. You must also remember that the maximum amount that can be availed by you is your six months’ salary. This amount may not be very big but still it will offer you some help that you might need in a crisis situation. Not only can this advantage be taken anytime, but also, it can be enjoyed as many times as you want. Thus, your PF will save you for sure.
Certain documents must be provided by you along with the Form 31. Your employer must give a certificate stating the insurance scheme offered by him and the benefits that are not available for the member. If not this, then the member must provide a certificate issued by Employees’ State Insurance Corporation that would state that fact that the member can no longer avail the cash benefits provided by the Employees’ Insurance Scheme

Your employer must give a certificate stating the insurance scheme offered by him and the benefits that are not available for the member. If not this, then the member must provide a certificate issued by Employees’ State Insurance Corporation that would state that fact that the member can no longer avail the cash benefits provided by the Employees’ Insurance Scheme

2. Marriage Purposes

Money from your EPF can be withdrawn for an occasion like marriage in case you have already completed seven years of your service life. You can use up to 50 % of the amount that is there in your EPF account and you can enjoy this advantage for a maximum of three times. So, let us consider that you have around 5 lacs in your EPF account. However, you must not calculate the entire amount when you wish to withdraw it for your marriage purposes. Just your own contribution towards EPF along the interest accumulated on it is supposed to be calculated by you. Applicable cases are as follows.

Your own wedding

Wedding of your child

Wedding of your sibling

3. Construction of house or purchase of property

You can withdraw some money from the EPF when you are planning to purchase a house or construct a house. However, you must understand a few rules first.

The land or house that you wish to purchase must be on your name, your spouse’s name or jointly in both your names. Any other combination will not be allowed
You must have completed a period of 5 years in your service
The maximum amount that you can avail from your EPF account is 24 times your monthly salary If the property that you intend to purchase is in question then it should first become free from all related disputes. The property must be a registered one and the proof of the registration must also be provided

4. Repaying the existing home loan

If you have taken a home loan and wish to prepay it then you may withdraw some amount from your EPF. But to avail this benefit you must have completed ten years of your service. However, you can only avail this advantage once in your entire lifetime. Also, you can either use the EPF for purchasing house or property or for repayment of present home loan. You cannot avail money for both of them. The property for which you are making the payment must be in your name, your spouse’s name or jointly held by both of you. Many people have joint home loans with their siblings or parents. In such cases, you will not be able to avail this particular benefit. An amount equivalent to 36 times your monthly salary can be availed from the EPF for the repayment of the existing home loan.

5. Education purposes

Some money from your EPF can be withdrawn for Education purposes. This advantage can be availed only for post matriculation educational expenditures. This means, if you admit your daughter or son to any university or college then you will be able to draw money from the EPF account. You must complete seven years in your service before you can avail this benefit

6. Alteration or Repairs of your house

After several years of staying in a house, you might think that it needs some repairs. Some alterations can also be an option which will make things convenient for you. But this is a costly affair and could very well burn a hole in your pocket. You can avail some money from the EPF for this purpose. But first you need to know some rules.

You can withdraw and enjoy a maximum of 12 times your monthly salary
You can withdraw and enjoy a maximum of 12 times your monthly salary
You must have completed a period of ten years in your service life
You must have completed a period of ten years in your service life
The house that you wish you repair must be under your name, your spouse’s name or jointly under both of your names

7. Other reasons for withdrawing money from EPF

If the member has reached the age of retirement.
If they have been unemployed for a duration of more than 60 days or two months
If they have been unemployed for a duration of more than 60 days or two months
If they have been unemployed for a duration of more than 60 days or two months

Limits of EPF Partial Withdrawal

Employees can make withdrawals based on the below-listed circumstances. Listed below are the withdrawal purpose, the minimum service requirement to be eligible to make the withdrawal, the PF withdrawal limit and the relations for who the employee can make the withdrawal.

PF withdrawal reason	Minimum service	PF Withdrawal Limit	Relations
House Construction or purchase of plo	5 years	24 times the monthly salary for purchasing/36 times the monthly salary for purchase and construction, or the cost of the property or the total of employee and employer’s shares with the interest amount, whichever is less	The PF account holder and spouse or joint
Home Loan Repaymen	3 years	90% of PF balance	The PF account holder and spouse or joint
House renovation or alteration	5 years from completion of construction of a house	12 times the monthly salary	The PF account holder and spouse or joint
Marriage	7 years	50% of the employee’s contribution with interest	The PF account holder, siblings, and children
Medical treatment	Not required	Employee’s share with interest or 6 times the monthly salary, whichever is lower	The PF account holder, parents, spouse, or children

Partial withdrawals from EPF account

The Employees Provident Fund is a retirement fund for employees in the organized sector. A percentage of the salary is deposited by the employee automatically from the salary every month and a portion is contributed by the employer too. This creates a corpus of money that can be availed after retirement. However, a portion of it can be withdrawn before retirement as well for certain specific requirements. The withdrawal can be done for special circumstances that have already been specified by the government. Some of these circumstances are: meeting the expenses of education or marriage for one’s siblings or children. For higher education, partial withdrawal to pay fees is only allowed for classes above 10th grade. Also, such withdrawals can only be done after 7 years of being in employment and only up to 50% of own contribution with interest. Partial withdrawal can be done up to 3 times till retirement.

It can also be done for home loan repayment if the home loan is in the EPF account holder’s name or is held jointly with the spouse. The amount that can be withdrawn to pay the home loan is equivalent to 36 months of dearness allowance or basic wages, the total of both the employer and employee’s contribution with interest income, or the home loan’s interest amount with the total outstanding principal amount. For this, there has to be a minimum of 10 years of employment.It can also be withdrawn to buy a plot of land to construct a land or to purchase a house, for which 5 years of employment has to be completed.

Process to withdraw the EPF amount for repayment of home loan

The Employee’s Provident Fund (EPF) scheme allows an individual save towards retirement. 12% of the employee’s basic salary and Dearness Allowance (DA) is contributed by the employee and employer towards the scheme every month.

The total amount that has been accumulated can be withdrawn by the employee at the time of retirement. However, the employee can withdraw the money for various other reasons as well. Home loan repayment is one of the reasons why the EPF amount can be withdrawn. 90% of the available amount can be withdrawn for the repayment of a loan. The money can be withdrawn for the purposes of constructing a flat or a house as well. However, PF withdrawal for the purposes of home loan repayment can be done only after the completion of 10 years’ membership. The member’s share towards the account must be 1,000 inclusive of interest. The EPF amount can be withdrawn both offline and online. In case you choose the offline mode, the physical application must be submitted at the EPFO office. The form can be downloaded from the EPFO website.The two types of claim forms that are available are Non-Aadhaar and Aadhaar. You can also opt for the online mode and apply for EPF withdrawal by using the UAN. The UAN must be linked to the bank details, Aadhaar number, and PAN. The PF Advance form can be submitted by choosing the claim.

Any member of EPF scheme with UAN (Universal Account Number) employed in any factory or establishment is eligible to take advances.

Refund amount is allowed for least of the following amounts:

Basic Salary and Dearness Allowances of 3 months or
70% of amount outstanding to credit of EPF Account

Since withdrawal is non-refundable, there is no requirement to refund the amount.Process of claiming advance is also completely online. Therefore, any employee can claim such amount if his UAN is validated to Aadhar and KYC of Bank account and Mobile Number is seeded in UAN.

Requirements for PF Withdrawal

To ensure the process of making a withdrawal is seamless; subscribers have to meet the requirements that are listed below, if they wish to carry out a withdrawal without the attestation of their employer

Subscribers have to ensure that their UAN is active and their mobile number is seeded with their PF account.
The PF member should also seed his/her Aadhaar card details with their PF account.
The member’s bank account details and the bank’s IFSC code have to be integrated as well.
For final settlements prior to completion of 5 years in the EPF scheme, the member will be required to seed his/her PAN details.
Check out for more about PF Withdrawal Guidelines

Rules pertaining to EPF

Contributions from employees as well as employers add to the EPF. However, unlike what is commonly thought to be, the entire portion of contribution from an employer doesn’t go exclusively towards the EPF. The divisions of funds are mentioned as follows

12% of Salary of Employee goes directly towards EPF
12% of Salary of Employer is divided as follows –

3.67% of contribution towards EPF
1.10% of contribution towards EPF Administration Charges

0.5% of contribution towards Employees’ Deposit Linked Insurance (EDLI)
0.01% of contribution towards EDLI Administration Charges
8.33% of contribution towards Employees’ Pension Scheme

Key Points about EPF Contribution:

12% Employer’s contribution includes 3.67% EPF and 8.33% EPS
10% EPF share is valid for the organizations where there are 20 or less than 20 employees /organizations with losses incurred more than or equal to the net worth (at the end of financial year) /organizations declared sick by the Board for Industrial and Financial Reconstruction
Total contribution made by the employer is distributed as 8.33% towards Employees’ Pension Scheme and 3.67% towards Employees’ Provident Fund.
The contribution made by the employee goes totally towards the provident fund of the employee.
Apart from the above-made contributions, an additional 0.5% towards EDLI has to be paid by the employer.
Certain administration costs towards EDLI and EPF standing at the rate of 1.1% and 0.01% respectively also have to be incurred by the employer. This means that the employer has to contribute a total of 13.61% of the salary towards this scheme.

As per the latest changes made to the EPF rules, the following should be borne in mind –

Death Insurance Benefits– Under the Employees’ Deposit Linked Insurance Scheme (EDLI), the minimum death insurance benefit given to the beneficiaries has been increased to 7 lakh if the subscriber dies during employmen
Employer Contribution towards EPS - The employer contribution towards EPS is 8.33% of the employees’ salary which consists of the basic salary, admissible cash value of food concessions, retaining allowance, and dearness allowance.
Changes to pension amount –The minimum monthly pension amount has been now set at 1000 for the widow of a member of the Employees’ Provident Fund. For children and orphans, it has been set at 250 and 750 per month respectively. The pension amount henceforth will be calculated as per the average salary of the last 60 months, instead of 12 months.
Insurance Coverage –The initial coverage amount under EPS had been 156,000. As per the recent changes, this amount has now been increased to 300,000 per member.
Employer Contribution towards EPS –Due to the change in the minimum salary amounts, employer contribution has increased to 1250 per month towards EPS irrespective of if the salary is below or above 15000 per month
Change in threshold limit – Instead of 20 employees per organization as the minimum group size, 10 employees in an organization will be considered eligible for EPF contribution.
Withdrawals –Withdrawals can be made from an EPF account through claim forms for financing an insurance policy, buying or building a house and a few other acceptable situations as per the EPFO

EPF Interest Rate FY 2021-22

The interest rate on EPF is reviewed annually.EPF interest rate for FY 2021-22 is 8.50%. Once EPFO notifies the interest rate for a financial year and the year ends, interest rate is calculated for the month-wise closing balance and then for the entire year.

The year in which the new interest rates are announced stays valid for the next financial year i.e. from the year starting on 1st April of one year to the year ending on 31st March of the next year. Here are a few important facts to know about EPF Interest Rate:

The rate of interest i.e. 8.50% is valid and will be applicable only on EPF deposits made between the months of April 2021 and March 2022.
The interest, even though calculated on a monthly basis, is transferred to the Employees’ Provident Fund account only on a yearly basis on 31st March of the applicable financial year
The transferred interest is summed up with the next month i.e. April’s balance and is then again used for calculation of the interest.
If the contribution is not made into an EPF account for thirty-six months continuously, the account becomes dormant or inoperative
Interest is offered on inoperative accounts of employees who have not attained the retirement age.
Interest is not provided on the amount deposited in inoperative accounts of retired employees.

The interest earned on inoperative accounts is taxable as per the member’s slab rate.
For contributions made towards the Employees’ Pension Scheme by the employer, the employee shall not receive any interest. However, a pension is paid out of this amount after the age of 58

EPF Interest Rate Calculation

Let’s suppose that an employee started his contributions from the month of November 2020.

Contribution Start Month	Contribution Start Month
Interest Rate (p.a)	8.5%
Monthly Interest Rate	8.50/12 = 0.7083%
Employee’s Contribution	12% of 15,000 = 1,800
Employer’s Contribution	1,800 (8.33% in Pension, 3.67% in EPF)
Employer’s Actual Contribution to EPF account	3.67% of 15,000 = 550
Total Monthly Contribution in EPF account	1800 + 550 = 2,350

The balance calculation for the next month (December) will be done in a given manner:
Balance carried forward from November 2021= 2,350.
Interest earned for the month of December 2021 = 16.75
Balance at the end of December 2019 = 2,350 + 2,350 = 4,700

Note: Although interest has been earned in December 2020, it will be credited at the end of the financial year on 31st March 2021

EPF Contribution

The employer and employee make equal contributions to the EPF account as shown below.

Contribution by	Monthly Percentage Contributed
Employer	12%
Employee	12% or 10%
Total	24%

Employee State Insurance (ESI) - Introduction

The employee state insurance (ESI) is managed and regulated by the Employee State Insurance Corporation which is an autonomous body under the Ministry of Labor and Employment, Government of India. The ESI scheme was started for the Indian Employees that provided monetary, medical, and other benefits from the employer to the employee.

Currently any factor or employment or any establishment that has employed over 10 employees with a minimum salary of 21,000 has to mandatorily register itself with the ESIC.

Composition of ESIC

The ESIC generally consists of the following members as explained below:

The Director General of ESIC, ex-officio
Chairman appointed by the Central Government
Vice-President appointed by the CG
Not more than 5 persons nominated by the CG
1 person representing each state appointed by the CG
1 person nominated by the CG representing UTs
10 persons representing employers nominated by the CG
2 persons representing the medical profession nominated by the CG
3 members of the Parliament (2 from Lok Sabha and 1 from Rajya Sabha)

ESI is a contributory fund that enables Indian employees to participate in a self-financed, healthcare insurance fund with contributions from both the employee and their employer. The scheme is managed by Employees’ State Insurance Corporation, a government entity that is a self-financing, social security, and labor welfare organization.

The entity administers and regulates ESI scheme as per the rules mentioned in the Indian ESI Act of 1948. ESI is one of the most popular integrated need-based social insurance schemes among employees. The scheme protects employee interest in uncertain events such as temporary or permanent physical disability, sickness, maternity, injury during employment, and more. The scheme provides both cash benefits and healthcare benefits.

Definition of Factory under ESI Act

A Factory is any premise where ten or more than ten persons are employed or were employed for wages on any day of the preceding twelve months, and, in any part of which a manufacturing process is being carried with or without the aid of power. In case within the same premises of a factory, several departments are situated and the departments are engaged in the work in connection with or incidental to a manufacturing process of the factory, they would fall apart from the factory.

This definition of a factory under the ESI includes a seasonal factory that is working for a period of not exceeding seven months in a year and is engaged during that period in any process related to blending, packing, or repacking of tea or coffee or other manufacturing processes that are process notified by the central government

Mines are not included in this definition under the definition, subject to the operation of Mines Act, 1952 or a railway running shed.

Hence, if the number of persons working in the factory premises is ten or more the premise is factory irrespective of the consideration of whether they are paid wages or not. Also, all people working in the factory need not be employed in the manufacturing process.

Definition of Establishment under ESI Act

Under the ESI Act, an establishment is an organized body of men or women or an institution, It is not necessary for an establishment confined to a particular premise or place. If an establishment employs 20 or more persons, it will be required to obtain ESI registration in India. Hence, the establishments employing less than 20 employees who are drawing less than 21,000 a month as a wage should not get ESI registration.

Shops must also be registered under the ESI Act. The Supreme Court has defined a shop as any premises where economic activities leading to sale or purchase are carried on. Thus, the essential ingredient for determining a shop is that services are rendered to the customer. So service providers like advertisement agencies, liaison offices, consultancy services, and real estate services will need to get ESI registration in India. In this educational institution, hospitals, dispensaries, offices of auditors and solicitors, chartered accountants, and private commercial hospitals are excluded.

Employee State Insurance (ESI)

Employees’ State Insurance Corporation (“ESIC”) is a statutory corporate body set up under the ESI Act 1948, which is responsible for the administration of the ESI Scheme. ESIC stands forEmployee State Insurance Corporation is an autonomous body created by law and is under the control of the Ministry of Labor and Employment, Government of India. It regulates the ESI scheme as per ESI Act of 1948. ESI scheme is set to cater the health and insurance needs of the employees and is funded by the employees and the employer.

The ESI scheme is a self-financed comprehensive social security scheme devised to protect the employees covered under the scheme against financial distress arising out of events of sickness, disablement or death due to employment injuries.

The ESIC has its headquarters in New Delhi besides 23 regional offices, 26 sub-regional offices in the states and over 800 local offices throughout the country to support the implementation of the ESI scheme. In addition, the Medical Benefit Council, a specialized body that advises the ESIC on the administration of Medical benefit is functioning.

The Factory or Establishment to which the Act applies is to be registered by logging into ESIC Portal i.e. www.esic.in within 15 days from the date of its applicability to them The employer is supposed to sign up, providing factory/Establishment name, Address Principal employer’s name, Bank Account, PAN, use of power in case of of factory, State and region as well as e mail address. The employer trying to register would get a user ID and a password through his mail ID. The employer can log in to www.esic.in. His mail ID can also be used as user ID and the password received has to be accessed from the mail box can be used to register his unit by providing information in the Portal. Automatically a 17 digit code number is generated after successful registration. The employer can register any Branch or Sales Office through ESIC Portal using his credentials and his unique primary registration code number. Sub-code number is also a unique identification number allotted to a sub-unit, branch office, sales office or Registered Office of a covered factory or establishment located in the same State or different State.

Who is eligible to obtain ESI registration in India?

ESI scheme applies to all types of establishments, including corporates, factories, restaurants, cinema theatres, offices, medical and other institutions. Such units are called Covered Units. To be eligible for ESI registration is to have more than 10 workers. In some regions, ESI registration is possible for establishments only if there are more than 20 employees. Here are some other criteria that need to be satisfied for obtaining ESI registration

An employee whose gross salary is up to 21,000 per month can avail of this with the help of the employer.
The establishment is registered with the EPFO.
The total contribution to ESI is 4% of the gross salary and it can be further divided as:

3.25% by the employer
0.75% of the employee

For industrial units where there are chances of occurrence of injury or health issues all the employees with a salary less than 21,000 compulsorily need to get ESI registration.
All units that are covered under Factory Act and Shops and Establishment act are eligible for ESI.
Where 10 or more people are employed irrespective of their monthly earnings. Note: Some states (such as Gujarat and Punjab) have upper limits on the number of employees for eligibility of the ESI scheme.
Units which are located in the scheme-implemented areas. The government plans to implement ESI across the entire country by 2022 so all units will be considered as Covered Units.

How to identify eligible employees?

All employees of a covered unit, whose monthly incomes (excluding overtime, bonus, leave encashment) do not exceed 21,000 per month, are eligible to avail benefits under the Scheme. Employees earning daily average wage up to 176 are exempted from ESIC contribution.

However, employers will contribute their share for these employees. All persons employed in the premises including the precincts thereof irrespective of their wages including trainees, casual and contract employees are counted for the purpose of coverage of the factory / establishment. Even the Directors rendering service and receiving remuneration are to be counted.

Persons who are not be counted for coverage of a factory

A proprietor or a partner whether drawing salary or not;
A contractor lending the services of his employees;
An apprentice engaged under the Apprentice Act, 1961;
Persons employed on contract for service, e.g. legal, technical, tax consultants etc;

Organizational Structure for ESIC

Features of the ESI Scheme

The entity administers and regulates ESI scheme as per the rules mentioned in the Indian ESI Act of 1948.ESI is one of the most popular integrated need-based social insurance schemes among employees. The scheme protects employee interest in uncertain events such as temporary or permanent physical disability, sickness, maternity, injury during employment, and more. The scheme provides both cash benefits and healthcare benefits

Complete medical care and attention are provided by the scheme to the employee registered under the ESI Act, 1948 at the time of his incapacity, restoration of his health and working capacity.
During absenteeism from work due to illness, maternity or factories accidents which result in loss of wages complete financial assistance is provided to the employees to compensate for the wage loss.
The scheme provides medical care to family members also. As of 31 March 2019, 3.14 crore employees are covered under this scheme with the total number of beneficiaries summing up to 13.32 crore.
Broadly, the benefits under this scheme are categorized under two categories:

Cash benefits (which includes sickness, maternity, disablement (temporary and permanent), funeral expenses, rehabilitation allowance, vocational rehabilitation and medical bonus) and,
Non-cash benefits through medical care.

The scheme is self-financing and being contributory in nature. The funds under the ESI scheme are primarily built out of the contribution from the employees and employers payable monthly at a fixed percentage of wages paid.
Currently, the employee contribution rate is 0.75% of the wages and that of employers is 3.25% of the wages paid.
The employer makes the contribution from his own share in favor of those employees whose daily average wage is 137 as these employees are exempted from his own contribution
The employer is required to pay his contribution and deduct employees’ contribution from wages and deposit the same with ESIC within 15 days from the last day of the calendar month in which the contribution falls due. The payment can either be done online or through designated and authorized public sector banks.

What salary components are applicable to ESI deductions?

ESI contributions (from the employee and employer) are calculated on the employee’s gross monthly salary. Most people face challenges in understanding ESI deduction rules because they aren’t clear about the concept of Gross Salary. So let us explain this concept first.

Gross salary is described as the total income earned by the employee, while working in their job, before any deductions are made for health insurance, social security and state and federal taxes.For ESI calculation, the salary comprises of all the monthly payable amounts such as

Basic pay,
Dearness allowance,
City compensatory allowance,
House Rent Allowance (HRA),
Incentives (including sales commissions),
Attendance and overtime payments,
Meal allowance,
Uniform allowance and
Any other special allowances.

The gross monthly salary, however, does not include Annual bonus (such as Diwali bonus), Retrenchment compensation, and Encashment of leave and gratuity.

What are the benefits for Employers under ESI?

Employers covered under ESI Scheme are exempt from the Maternity Benefit Act and Employees’ Compensation Act for employees.
Employers are freed from responsibility during physical distress of workers such as sickness, employment injury or physical disablement resulting in loss of wages, as the financial support in such contingencies is provided by the ESIC in respect of insured employees.
Any sum contributed under the ESI Act is deductible while computing ‘Income’ under the Income Tax Act.

Benefits of ESIC Registration for employees

ESIC Scheme ensures various benefits to registered employees and their dependents. List of benefits is as follows:

Medical benefits: From the very first day of employment the registered ESI members and the family members enjoy the benefits of complete medical care and insurance. Retired members and permanently disabled insured persons and their spouses can also avail medical care on payment of an annual premium of 120. Reasonable medical care, comprehensive medical care & clinical investigation for insured people and his family members.

Sickness Benefits: Absent at work due to illness are allowed for a maximum of 91 days per year along with 70% of the monthly wages.

Sickness Benefits- Absent at work due to illness are allowed for a maximum of 91 days per year along with 70% of the monthly wages.

Medical Care: Medical facility within ESI Medical institutions to insured person and his spouse

Old age medical care expenses- By the annual payment of 120 medical care benefits can be availed for the ESI employees or for those who are opting for VRS/ERS. The members who retiring on account of permanent disability can also avail themselves the same.

Disablement benefit- From the day of the employees irrespective of having done any contribution, 90% of the wage is payable as long as the temporary disability continues. Permanent disablement benefit is payable at 90% of the wage as a monthly payment. Disability benefits Payment is made to the employee as long as disability continues.

Dependent Benefits: Amount is paid to the dependents of the Insured person who dies as a result of employment injury. In case of the sudden demise of an employee during the employment, the dependents of the deceased employee will receive 90% of his or her monthly salary.

Maternity benefits: Paid maternity leaves to the women who are pregnant (paid leaves) are given for 26 weeks. This maternity leave period can be extended on medical advice by 30 days at the rate of full wage subject to contribution for 70 days in the preceding year. 6 Weeks are given in case of miscarriage.

Funeral benefits: Onetime payment made for the funeral of an insured person. If the death of the employee happens while on work – 90% of the salary is given to his dependents in the form of a monthly payment after the death of the employee. The family members of the deceased employees are entitled to an additional amount of 10,000 for the funeral expenses.

Unemployment Allowance under Rajiv Gandhi Sharmik Kalyan Yojna’(RGSKY)

Vocational Rehabilitation Allowance- Permanently physically challenged employees who are insured are entitled to vocational rehabilitation training at VRS.

Confinement expenses-Confinement expenses can be availed in case of confinement of an insured woman or wife of the employee with no medical facilities under the ESI scheme

Confinement expenses- Confinement expenses can be availed in case of confinement of an insured woman or wife of the employee with no medical facilities under the ESI scheme

Collection of ESI Contribution

It is the employer’s responsibility to contribute to the ESI fund by deducting the employees’ contribution from wages and combining it with their own contribution. An employer is expected to deposit the combined contributions within 15 days of the last day of the Calendar month. The payments can be made online or to authorized designated branches of the State Bank of India and some other banks.

ESI Calculations

The rates of contribution, as a percentage of gross wages payable to the employees, is explained in the table below

	Percentage of Gross Pay	Example Gross Salary	Contributions
Employee Deduction	0.75%	15,000	15,000 * 0.75% = 112.50
Employer Contribution	3.25%	15,000	15,000 * 3.25% = 487.50
Total Contributions for this employee			112.50 + 487.50 = 600.00

In case, the gross salary of the employee exceeds 21,000 during the contribution period (explained next), the ESI contributions would be calculated on the new salary and not 21,000.

For example, if the salary of an employee increases to 22,000 per month, then the ESI would be calculated on 22,000 instead of 21,000 during the contribution period.

E.S.I. Scheme being contributory in nature, all the employees in the factories or establishments to which the Act applies shall be insured in a manner provided by the Act.

The contribution payable to the Corporation in respect of an employee shall comprise of employer's contribution and employee's contribution at a specified rate.

The rates are revised from time to time. Currently, the employee's contribution rate (w.e.f. 01.07.2019) is 0.75% of the wages and that of employer's is 3.25% of the wages paid/payable in respect of the employees in every wage period. Employees in receipt of a daily average wage upto 137/- are exempted from payment of contribution. Employers will however contribute their own share in respect of these employees.

Collection of Contribution

An employer is liable to pay his contribution in respect of every employee and deduct employees’ contribution from wages bill and shall pay these contributions at the above specified rates to the Corporation within 15 days of the last day of the Calendar month in which the contributions fall due.The Corporation has authorized designated branches of the State Bank of India and some other banks to receive the payments on its behalf

Contribution Period and Benefit Period

There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration as under.

Contribution period Corresponding Cash Benefit period

Payroll administrators often face confusion when employee’s salaries change – especially when the monthly salary exceeds the ESI limits of 21,000.To handle this situation, ESI has a concept of contribution periods during which the ESI contributions have to continue, even when the salary exceeds the maximum limits.There are two contribution periods each of six months duration and two corresponding benefit periods also of six months duration.

Contribution Period	Cash Benefit Period
Cash Benefit Period	1st January of the following year to 30th June
1st January of the following year to 30th June	1st January of the following year to 30th June

After the commencement of a contribution period, even if the gross salary of an employee exceeds 21,000 monthly, the employee continues to be covered under ESI scheme till the end of that contribution period.The contribution is deducted on the new salary. For example, if an employee’s gross salary increases in June from 18,000 (within ESI limit) to 22,000 (above ESI limit), the deductions for ESI will continue to happen till the end of the ESI contribution period i.e. September.And the deduction amount for both the employee and employer will be calculated on the increased gross salary of 22,000.

At the end of the contribution period, if the employee salary is more than the ESI limit, no further deductions and contributions are required. The employee will still be covered under ESI till 30^th June of the following year. Similar rules apply when an employee’s salary increases in the 2^nd contribution period.

Applicability of the ESI scheme

The ESI scheme is applicable to all factories and other establishments as defined in the Act with 10 or more persons employed in such establishment and the beneficiaries’ monthly wage does not exceed Rs 21,000 are covered under the scheme. Whether the employer has employed 10 or more employees, all employees employed by the employer, agnostic of the salary are reckoned.

Entities Covered Under ESIC

As per the government notification under Sec 1(5) of the ESI Act the following entities are covered:

Shops- All units that are covered under Factory Act and Shops and Establishment act are eligible for ESI.
Where 10 or more people are employed irrespective of their monthly earnings. Note: Some states (such as Gujarat and Punjab) have upper limits on the number of employees for eligibility of the ESI scheme.
Units which are located in the scheme-implemented areas. The government plans to implement ESI across the entire country by 2022 so all units will be considered as Covered Units.
Restaurants or hotels engaged only in sales.

Cinemas.
Road motor transport establishments.
Newspaper establishments (which is not covered under the Factory Act)
Private educational institutions.

Returns Filed Every Year after the Registration is finalized

After the registration ESI Returns have to be filed twice a year. The following documents are required for the filing of the returns:

Register of attendance of the employees.
Form 6 – Register.
Register of wages.

Register of any accidents which have happened on the premises of the business.
Monthly returns and challans.

ESIC Return Due Date

Every employer makes the ESI payment on a monthly basis, and the payment is given to the ESI department. The due date for ESI is the 15th of the following month, which can also exceed or change according to the department rules. In this context, ESI is similar to the PF.ESIC Return filling and payment can be both done at the same time. Hence, the ESI return due date is the same as that of payment. i.e. on or before 15th of every month.

Penalty for Delayed Payment

Delayed remittance of ESIC /PF deposit will incur penal damages. The penal charges, as specified by the EPFO, ESIC are as follows:

S.No.	Time-Period of Delay	Rate of Penalty
1.	Delay for up to 2 months	5% per annum
2.	Delay ranging from 2 months to 4 months	10% per annum
3.	Delay ranging from 4 months to 6 months	15% per annum
4.	Delay exceeding 6 months	25% per annum (It may correspondingly go up to 100%)

Organizational Structure for ESIC

ESIC Registration Process

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Step 1: Log in to ESIC Portal

An employer needs to get himself registered on the ESIC portal.

An employer can register on the ESIC portal by clicking on the ‘Sign Up’ button under the ‘Employer Login’ option on the home screen.

After clicking on the ‘Sign up’ button, the employers need to fill in the details and submit the form.

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Step 2: Confirmation Mail

After submitting the form for sign up to the portal, the employer will receive a confirmation mail sent to the registered mail id and mobile number entered at the time of sign up.

The email will contain the username and password details for registering as an employer and employee under the ESIC scheme.

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Step 3: Employer Registration Form-1

Next, log in to the ESIC portal along with the username and password received in the mail. This will redirect to the page having the option of ‘New Employer Registration’.

Click on the ‘New Employer Registration’ option. Next, select the ‘Type of Unit’ from the drop-down list and click on the ‘Submit’ button. The ‘Employer Registration – Form 1’ will appear and the employer needs to fill in the details.

The Employer Registration Form-1 contains details pertaining to the unit of the employer, details of the employer and employees.

Once, the complete form is filled by the employer, he needs to click on the ‘Submit’ button.

Step 4: Payment for Registration

After submission of the Employer Registration Form-1, the ‘Payment of Advance Contribution’ page will open where the employer needs to fill the amount to be paid and select the payment mode.

The employer will need to pay the advance contribution for 6 months.

Step 5: Registration Letter

An employer needs to get himself registered on the ESIC portal.

On the successful payment of six months advance contribution, the system generated Registration Letter (C-11) is sent to the employer which will contain a 17 digit Registration Number by the ESIC department.

The Registration Letter (C-11) is a valid proof of registration of the employer.

Insurance number under the ESIC Act is the 17 digit unique identification number that is allotted to every registered establishment. The number is generated through the ESIC portal on the submission of required information by the employer. It is the mandatory for the employers to register their establishment under the ESI Act within 15 days from the date when the act becomes applicable to them. An employer will have to file 2 half yearly returns after their ESI registration is complete. The relevant benefit period corresponding to each contribution period commences 3 months after the end of that contribution period i.e. Jan to June and July to December.

The ESI payment and return filing

An employer should pay their contribution and the employees’ contribution on a monthly basis to the ESIC. The due date for paying ESI contributions is 15th of the following month.

Further, an employer needs to file ESI return on a half-yearly basis. Here are the due dates for filing half-yearly ESI returns:

Period of return	Due date of filing returns
April to September	11th November
October to March	11th May

However, these due dates can be extended or changed through an official notification by the ESIC department. The penalty for non-payment or late payment of contributions will be Simple interest of 12% per annum for each day of delay in payment will apply to every employer who fails to pay the ESI contributions on time. Also, non-payments, delayed or false payments under the ESI Act may attract imprisonment for a period extending up to 2 years and fine up to 5,000.

Further, the income tax act also disallows ESI contributions deposited after the due date. The employers shall not get the deduction benefit of such contributions and will end up paying income on it.

The returns that are filed every year after the registration is finalized

1. Register of Attendance of the Employees.
2. Form 6 – Register.
3. Register of wages.
4. Register of any accidents which have happened on the premises of the business.
5. Monthly returns and challans.

ESI Benefit claim

One can also get ESIC Form-9 to make a claim. If there is an occurrence of Sickness/Temporary Disablement/Maternity Benefit as given by the Employees’ State Insurance Corporation, Ministry of Labor and Employment, Government of India, there are two kinds of advantages that one can guarantee as a beneficiary of the ESI scheme, as referenced below:

Health Benefits: The employee and his/her dependents can also profit clinical consideration. To benefit this they also have to visit any of the ESI empanelled hospitals.
Cash Benefits: Employees or laborers who are recipients of the ESI plan can profit money benefits on account of sickness, disablement (temporary/lasting), maternity, joblessness, dependent, memorial service costs, and vocational or physical recovery.

How to Check Claim Status of ESI Online?

Below are the steps to check the ESI claim status online:

Open the UMANG App or download it if you have not installed it on your Smartphone.
Enter the IP number or the ESIC Insurance Number and click on ‘Get OTP’.
Enter the OTP and click on ‘Submit’.
Select ‘Claim Status’ under the services menu.
If you have raised any claims, you will be able to view the status or you use the advanced search to find the details.

Currently, the ESIC scheme doesn’t cover workers or employees earning more than 21,000 per month. Also, in the case of a disabled person, the maximum wage is 25,000/ month. Also, in Maharashtra and Chandigarh, the current threshold for coverage is still 20 employees and not 10 employees in the case of other states or UTs.

ESI Corporation has so far set up 151 hospital and 42 hospital annexes for inpatient services.
Primary and out-patient medical services are provided through a network of about 1418/140 ESI dispensaries/ AYUSH units, and 1017 panel clinics.

Five Occupational Disease Centers, one each at:

Mumbai
New Delhi
Kolkata
Chennai
Indore

For early detection and treatment of occupational diseases prevalent amongst workers employed in hazardous industries.
For payment of Cash Benefits, the Corporation also operates through a network of over
627/ 185 Branch Offices/ Pay Offices
61 Regional/ Sub-Regional and Divisional offices supervise the functioning.

Relevant Forms under the ESI Act

No.	Form No.	Form Purpose
1	Form-01	Employer’s Registration Form
2	Form-1	Declaration Form
3	Form 1(A)	Family Declaration Form
4	Form 2	Addition/Deletion in Family Declaration Form
5	Form 10	Claim for Sickness/ Temporary Disablement Benefit/Maternity Benefit
6	Form-3	Return of Declaration Form
7	Form-5	Return of Contributions (Half Yearly)
8	Form 11	Accident Book
9	Form 12	Accident Report from Employer
10	Form-14	Claim for Permanent Disablement Benefit
11	Form 15	Claim for Dependent Benefit
12	Form-16	Claim for Periodical Payment of Disablement Benefit
13	Form-19	Claim for Maternity Benefit and Notice of Work
14	Form-22	Funeral Expenses Claim
15	Form-24	Declaration and Certificate for Dependent Benefit
16	Form 31	EPF Advance Form
17	Form 32	Wage Or Contributory Record For Disablement Benefit
18	Form 37	Certificate of Re-employment or continuing Employment
19	ESIC-53	Application for change in particulars of IPs
20	ESIC-63	Declaration form regarding payment to the legal heir
21	ESIC-71	Particulars of contribution in case RC in respect of an IP
22	ESIC-86	Certificate of Employment
23	Dependency	Form of Certificate of Dependency

Conclusion

EPF is an excellent way of saving money for a demanding situation and future. The scheme also renders the insurance cover to the employee from EDLI. The employee does not need to serve any liabilities to avail such protection. This would result in higher returns as the interest rate is likely to crank up with time. Hence, investment in provident funds is not a costly affair as it would empower the individuals to reap monetary benefits in their demanding phase of life.ESI scheme is a cover for a worker which protects them with medical care for the insured. Additionally their dependents are covered as well. Finally ESI offers a variety of cash benefits during loss of wages or disablement. Also, the scheme offers pension known as dependent benefit to the family members of the insured person in case of death or injury due to occupational hazards while at work. Note that ESI is one of the key payroll compliances along with Provident Fund (PF), Professional Tax (PT) and TDS.

As per EPF Act, every employer is liable to contribute 12% of employees’ salary (i.e., Basic Pay + Dearness Allowance + Retaining Allowances) as employer’s contribution in EPF Account. Same % is also deducted from the salary of the employee. However, if an establishment has less than 20 employees and it opts for EPF Scheme voluntarily then such 12% shall reduce to 10%.

Out of 12% or 10% of employer’s contribution, 8.33% is deposited in Employee’s Pension scheme subject to a maximum of 8.33% of INR 15,000 (i.e., 1,250 per month). Therefore, if the basic pay of any employee is less than 15000 then 8.33% of his salary shall be contributed to Pension scheme. However, employees with salary of 15,000 or more, 1,250 per month shall be contributed to pension account.

Balance amount is retained in EPF account of employee. The government is planning to make amendments in EPF as it has prepared a draft bill that allows employees to switch money from EPF (Employee Provident Fund) to NPS (National Pension Scheme). Another proposal is to replace the existing definition of ‘wage’ (in the EPF Act) with a new one as mentioned in the Code of Wages, 2019. The new definition of wages is likely to impact the EPF contribution of those employees whose basic salary is currently less than 15,000.

In March 2020, the Government of India announced that individuals can withdraw a specific sum of money from their Employees' Provident Fund (EPF) account if they are undergoing any financial challenges due to the Covid-19 pandemic. The EPF rules were then amended to reflect the new guidelines whereby an individual who is a member of the Employees’ Provident Fund Organization (EPFO) would be allowed to withdraw an amount that is equivalent to three months of their basic and dearness allowance (DA) or be able to withdraw 75% of the credit balance in their account, whichever is the lesser amount of the two. The withdrawn amount is 'non-refundable' which means that there is no need to restore the amount in the EPF account.

In order to this, the person should have activated their Universal Account Number (UAN), verified and connected their Aadhaar number to the UAN, and have a bank account with the correct IFSC code connected to the UAN. There is no requirement to submit any certificate or documents to withdraw this amount. However, a scanned copy of the cheque should be kept ready to upload when making the application for withdrawal, applying for withdrawal from EPF account online. The application has to be done on the official e-Sewa member portal of the EPFO. It can also be done through the Umang mobile application of the EPFO. In the cases of organizations that are exempted, which are those that have private trusts that manage the EPF accounts of employees, the employer will have to be contacted in order to proceed with the withdrawal. Withdrawals due to financial challenges caused by the coronavirus pandemic can only be availed one time.

Frequently Asked Questions

1. How is UAN assigned?
When you join a company having more than 20 employees, you become entitled to EPF benefits. EPFO allots a unique 12-digit permanent number known as Universal Account Number (UAN) to the member. All PF accounts of a member are linked with his UAN. In case you want to avail online services through the EPF portal, you have to link your UAN with Aadhaar and PAN.
2. I have withdrawn a part of my EPF corpus. Will I continue getting interest on the withdrawn amount as well?
No, you will not get interest on the withdrawn amount. However, the amount remaining in the EPF account will continue earning interest.
3. Will I have to activate my UAN for transferring PF online?
You have to activate UAN by registering at the EPF member portal before you can process claims or withdraw funds online. You can do it easily by visiting the EPF member portal.
4. I have switched my job. Should I get a new UAN?
No, the UAN allotted to a member remains the same throughout the service period. A new PF account will be opened by the new employer which will be linked to the UAN of the member.
5. I have switched my company. Should I withdraw EPF corpus or transfer my fund?
It is recommended that you transfer your fund from the old PF account to a new one. If you withdraw the amount before 5 years of service, the withdrawn amount is taxable and should be mentioned under income from other sources while filing ITR.
6. I am currently unemployed and need funds. Can I withdraw my EPF corpus?
Yes, you can withdraw 75% of your EPF corpus after one month of unemployment. In case you remain unemployed for 2 consecutive months, you can withdraw the remaining 25% of the fund.
7.Is it still mandatory for members to link Aadhaar with EPF to avail online services? If not, is there a way to delink Aadhaar with UAN?
As per the recent circular released by the EPFO, UIADI has clarified that EPFO can continue to avail Aadhaar based authentication services for EPF schemes. So, in a way, you can not avail your EPF online services in case you delink your Aadhaar with UAN, as for now. The circular also states that if a member visits the EPFO office for an offline claim using Aadhaar KYC, the PRO will facilitate Aadhaar seeding facility on the spot in order to make the EPF claim online. Further, employees with their Aadhaar seeded with the UAN may not be allowed to raise offline claims from now on.
8. Are both the employee’s and employer’s contributions to my EPF account tax-exempt?
Contributions made to the EPF are tax exempt; however, the tax calculations are different. The employer’s contribution to the EPF account is not considered as part of your taxable income. So the employer’s contribution is tax-exempt at its source. While, the employee’s contribution is counted as part of his/her taxable income, however, the employee’s contribution is tax deductible under section 80C upto a maximum of 1.5 lakh per annum. So an employee’s contribution towards the EPF account is eligible to for tax-exemption but only under section 80C.
9. How much percentage is EPF deduction from salary?
12% of the employee’s salary goes towards contribution to Provident Fund. Also, Employee State Insurance Corporation (ESIC) is deducted on gross salary which is 0.75% from the employee contribution & 3.25% from the employer contribution.
10. How much EPF amount can be withdrawn?
EPF can be withdrawn only at the time of retirement or in case of unemployment and certain emergencies. Full withdrawal can be done after retirement or unemployment for two months. As per the new rule, EPFO allows withdrawal of 75% of the EPF corpus after 1 month of unemployment. The remaining 25% can be transferred to a new EPF account after gaining new employment.
11. What If someone dies a natural death or due to health related issues. Will any of his/her family members get the EPF amount?
In case, if the EPF subscriber expires, the nominee or the legal heir or the guardian in case of a minor can get the EPF amount. For that he needs to go claim the EPF money by submitting all required documents like Death Certificate and EPF Composite Form. Guardian Certificate is also required if it is claimed by a guardian of a minor other than natural guardian.

12. How to withdraw Employee Provident Fund?
You need to have an activated UAN and registered mobile number for withdrawal. Assuming that you have these prerequisites, go to EPF Member’s Portal and log in using UAN. Do check if your documents are verified as KYC in the ‘Manage’ section. Go to ‘Online Services’ and click on ‘Claim’ from the drop-down menu which displays all your personal details. Then, click on ‘Proceed for Online Claim’ to claim your withdrawal and select the claim you want to make under ‘I want to apply for’ like EPF Settlement or EPF Partial Withdrawal.
13. How to claim Employee Provident Fund?
As explained above, one needs to go to EPF Member’s Portal or e-SEWA Portal to login using UAN and go to ‘Online Services’ to claim and withdraw the fund.
14. What are the limits on advance PF withdrawal done online? payable?
EPF members can make advance withdrawals from their PF accounts for certain specific reasons. The list below gives the reason for which one may make an advance withdrawal online, and also the number of times one may do so online:
- When making a PF withdrawal to fund a marriage, it can be done only 3 times.
- The same limit applies when one withdraws their PF in advance to pursue their post-matriculation education.
- One can only make a one-time PF advance claim when they wish to use the amount to purchase a plot or house or wish to construct a house.
- If the PF is being withdrawn in advance before retirement, to fund any medical emergency or for treatment of a critical illness, there is no absolute limit on the number of withdrawals.
15. Do individuals have to provide the Form 15G/H when submitting their EPF withdrawal form?
Only when it is withdrawn after employment tenure of 5 years, EPF will be exempt from tax. That is not the case if the withdrawal is made before one completes a service period of 5 years. In the latter case, the amount being withdrawn will be taxed. The purpose that the Form 15G/H serves is that it saves one from having TDS deducted from their EPF withdrawal amount.
16. Can one claim their EPF without having to log on to the EPFO Portal?
Yes, one can claim their EPF amount without having to go through the EPFO Portal. To do so offline, one will be required to get a Composite Claim Form, fill it in completely and submit the same.
17. Is it compulsory to submit your PAN details at the time of EPF withdrawal?
It is absolutely essential for individuals looking to make a partial withdrawal from their EPF account to provide their PAN details. Failure to do so may attract TDS at the rate of 30% or more. However, if PAN is provided, the rate of TDS applicable shall be 10%.
18. Why cannot I withdraw my EPF balance while working?
The primary reason is that EPFO is a long-term investment programme. It helps members in building a retirement corpus. Hence, it does not allow anybody to withdraw their EPF balance while they are working with an organization or establishment.
19. Can I make partial withdrawals of PF for emergency purposes?
Yes, you can withdraw your PF in parts for emergency situations, which can be medical requirements, house construction, educational needs, etc. The limit for partial withdrawal will depend on your reason. To be eligible for a partial withdrawal, you will need to meet a particular minimum service limit.
20. What is the latest update regarding PF withdrawal when an individual loses his or her job?
As per the latest EPFO regulations, individuals who are terminated from their job will be allowed to make a withdrawal of 75% of their accumulated corpus. This can be done after 1 month from when they are terminated. Earlier, one was not permitted to make a withdrawal post 1 month. If the individual remains unemployed for a tenure of 2 months, then he or she will be allowed to withdraw the other 25% and settle the PF amount completely.
21. Can I withdraw my full PF amount before I retire?
An indicative list of activities covered under Branding & Marketing are In-store Branding, Shelf Space Renting, Listing Fee, Electronic/ Social Media and Print Media, outdoor publicity, billboard, commercial advertisement on channels etc. The Expenditure will not cover trade discounts, expenditure incurred on distribution, expenditure connected with participation of trade fairs and overseas logistics expenditure
22. Is there any tax exemption on EPF withdrawals?
If you have provided 5 years of continuous service with an establishment and with your PF account, then you can enjoy a tax exemption on your EPF withdrawal. However, if you withdraw before you give 5 years of uninterrupted service, you will then be required to pay taxes on the withdrawn amount.
23. Do I need my employer’s sanction to withdraw my EPF amount?
No, you do not need to get consent from your employer in order to withdraw your EPF amount. You can go ahead with the withdrawal process directly from the EPFO. However, your Aadhaar and UAN need to be linked, and should be authorized by your employer compulsorily. Once the Aadhaar and UAN have been authenticated accurately, the EPFO member will receive the funds directly from the EPFO.

24. I want to withdraw my EPF accrued from my previous company, but my current organization’s PF number is also linked to the same UAN as the previous one. Is there a way to do so online?
If you are employed currently and your current organization has opened a new PF account for you which is linked to your previous organization’s UAN, you won’t be eligible to withdraw your PF balance accrued with your previous employer. In this case, it is recommended that you transfer your previous employer’s EPF balance to the new account. This can be done easily with the help of the EPF Member e-Sewa Portal. Log in to the portal; go to the tab labeled ‘Online Services’ and click. Next you will see a drop-down menu from which you must locate and click on the option labeled “One Member-One EPF Account (Transfer Request)”. Please also note that if remain unemployed for a period of over two months, you will be eligible to claim your entire EPF balance after filling up and submitting Form 19.
25. How can I apply online for ESI?
To apply for the ESI, you need to check the eligibility criterion and then visit - http://www.esic.nic.in/ and fill Form No-1.
26. How can I get a PF amount in ESI?
You cannot get PF amount in the ESI account because PF is a monetary fund to help employees in unemployment period and retirement; whereas ESI is meant for meeting social securities namely health and insurance for the family and employees. EPF is as good as a savings account maintained for the employees and he can get details of the amount deposited to the EPF account over the period of time and interest accrued. However, ESIC is equivalent to insurance premium paid for medical benefits. Amount paid to ESIC account is not refundable to the employee.
27. What is ESI registration?
ESI scheme is set to cater the health and insurance needs of the employees and is funded by the employees and the employer. For this purpose, registration with the government is required which is called ESI registration.
28. Who are the contributors in PF and ESIC and what percent of income or salary is deducted in EPF and ESIC?
Who are the contributors in PF and ESIC and what percent of income or salary is deducted in EPF and ESIC?

EPF:-The employer and employee both contribute 12% each of the employee’s salary (basic + dearness allowance) to the EPF. However, in case an establishment opts for EPF registration voluntarily then 12% reduces to 10%.

ESIC:-Currently, the employee’s contribution rate (w.e.f. 01.07. 2019) is 0.75% of the wages and that of employer’s is 3.25% of the wages paid/payable in respect of the employees in every wage period. Employees in receipt of a daily average wage upto 137/- are exempted from payment of contribution.
29. How can I check that deducted EPF has been deposited to my PF account?
To get information related to PF Account, an employee is required to file a request in Form 12 with his employers and such form gives the details of the money that has been deducted till date from salary of employee towards EPF and the total amount deposited along with date of deposit in those EPF accounts.

However, with advancement of technology, all records of EPF Accounts have been shifted online. Therefore, an employee can check his EPF passbook after creating login credentials at EPF portal using his UAN.
30. What is the rate of interest on the amount deposited in the EPF Account?
Rate of interest on balance in EPF account keeps on varying every year. The rate of interest of EPF for the year 2019-2020 is 8.50%.
31. Whether I get any income tax benefit for EPF Deducted?
All Companies can be certified with ISO Standards. Regardless of size, nature, and type, all organizations are eligible for the ISO Certification. From Small Scale (Even one person) organizations to large scale organizations can take ISO Certification.
32.Whether I get any income tax benefit for EPF Deducted?
Upto FY 2019-20, any contribution made to EPF Account, whether for employee contribution or for employer contribution, is entitled to deduction under section 80C of Income Tax Act. However, aggregate deduction shall not exceed 1,50,000.

With effect from FY 2020-21, all individuals are available with the option to pay tax as per the new regime. Under the new regime, no deduction is available for contributions made to EPF Account. Therefore, if assessee opts for new scheme of taxation then no deduction shall be available.
33. How can I check my PF amount online?
To check the account balance of EPF on the EPFO portal, you need to have an active UAN (universal account number). Further, to check the balance, an employee is required to create online credentials on EPF portal. Post creation of login credentials, please,

visit https://passbook.epfindia.gov.in/MemberPassbook/Login, and then enter your UAN and password. After you enter the credentials, the website allows you to download and view your EPF account statement.
34. How can I log in to my Login my PF account?
The first step is to visit the EPFO website and then click on the login page. The page will then ask you to enter your username and password if you have already registered with the portal. If not, you will have to register by entering the details requested.

35. How can I create my PF account?
In order to create the PF account, the employee needs to have a UAN number first. UAN of the employee is generated and shared by Employer himself. To generate a UAN number, the employer must log in to the EPF Employer portal using the company id and password. And then, clicking on the tab that says “Register Individual” in the “Member” section.

System will ask you to enter the details of the employee, such as PAN, bank details, Details of nominee etc. Once the approval is given to all by the employer, new UAN numbers are generated for all the employees. This unique UAN number can be found out easily by following a few steps. These are:
- 1. Visit the EPF member portal.
- 2. Select the ID of employee, PAN number, and aadhar card number.
- 3. Enter the personal details of the employee
- 4. Click on” Get authorization pin” option
- 5. A pin will be sent in the registers mobile number
- 6. Once you enter the pin, the UAN number will be sent to the same registered mobile number.
36. How can I know my UAN number by name?
To know the Pf number by name, you need to go EPFO’s unified member portal for the services related to UAN. Select the option that says “know your UAN status.” Clicking on this tab will redirect you to another page. Portal will ask you to first validate your mobile number through One Time Password and upon correct validation of mobile Number portal will redirect you to another page where you need to enter other details such, Name, date of birth and either of Aadhar Number or PAN or Member ID.

Upon entering all details correctly, click on “Get Authorization Pin” and you will receive OTP on your mobile number. After entering the OTP, the system will show the UAN number of the concerned person.
37. Can I withdraw my EPF amount online?
Yes, the EPF amount can be withdrawn online through the member portal of UAN. All one needs to do is activate his UAN and then Login to the “Online withdrawal” portal. The amount to be withdrawn can be entered, and status can be checked on the same portal.
38. How can I get an ESI card?
ESI or penchant application form needs to be downloaded from the ESIC portal by the employer, and the details of the employee need to be filled. The employee then needs to submit a copy of this form with the family photograph and the dependants’ photographs duly attested. The ESIC office, after all the relevant checks, issues an ESI card to the employee.

ESIC Card can also be downloaded online from www.esic.in portal. Post login at ESIC portal by employer, option can be seen to download EISC Card of employees.
39. Like EPF, can I withdraw the ESI amount?
ESI is a premium paid for medical benefits. If no benefit is obtained from it, there is no option available to withdraw amount from ESI Account.
40. How to link multiple EPF accounts with UAN?
Your UAN number has been issued to bring in all your Employee Provident Funds under the purview of one unique number. The EPFO promotes this unified system as ‘one employee-one EPF account’. So, you can pull in up to 10 PF accounts within this singular system by visiting the EPFO portal.
41. Is ESI calculated on basic salary?
The ESI Scheme will be calculated on the gross salary of 21,000 if the salary is above 21,000 the ESI will still be constant.
42. Who is not eligible for ESIC registration?
The ESIC scheme does not cover the workers or the employees that earn more than 21,000 per month and in the case of a person with disabilities, the maximum wage is 25,000
43. Is the family of the employee covered under ESIC?
The employee insured person and the family are entitled to avail medical benefits from the very first day of his or her joining the insurable employment.
44. Is ESI registration mandatory?
Yes, the statutory responsibility of the employer under section 2A of the Act read with the regulation 10-B to register their Factory/ Establishment under the ESI Act within 15 days from the date of applicability to them. The ESI act 1948 states that an establishment that has more than ten employees in the organization and has a maximum salary of 21,000 per month should mandatorily apply for the ESI registration under the ESI Act within 15 days
45. Can a person have 2 ESI registrations?
The contributions that are paid on insurance numbers cannot be transferred to another number because all the insurance numbers are unique and are issued to a person. The ESI number is just like the PSN which cannot be transferred. The ESIC is also advised to continue the same number even if the person is changing employers.
46. What are the incentives by the government for ESI members?
The government had introduced various health care benefits for poor families. The families that are covered under the NHPS scheme will be able to access medical facilities for medical treatment and their dependents.

47. I Why should an employer register the establishment at the EPFO portal?
Employers will not be able to generate the challan online in case the establishment is not registered. The employer will also need to register to create the User ID and password in order to access the details on the EPFO portal. Hence it is mandated for the employer to register online. All new registrations must be made online as the offline registration process has been done away with.
48. What are the error messages that can be expected, and how can they be resolved?
When the employer is attempting to register the following error messages can show up:

“No Record Found” upon entering the establishment id – The employer must verify the code and extension number and the EPFO office. If all details are accurate, then the employer must contact the concerned EPFO regional/Sub Regional office.

“Your Establishment is already registered” upon entering the establishment id – The employer must verify the code number and extension number if any, and the correct EPFO Office.

If the details are accurate, the employer must send a mail to the EPFO Helpdesk on ecrhelpdesk@epfindia.gov.in and mention“Reset Registration”. The employer will receive a form which has to be submitted under the signature of employer/Authorized signatory to the concerned local EPFO Office. After getting SMS on successful resetting of registration; the employer can register again.
49. How can the employer modify the details post registration?
The employer can modify the details on the portal when the need arises. The procedure is as detailed below:

Mobile Number – The employer must log in to the Employer Portal. Then click on the link “Edit primary mobile number” under “PROFILE”. The employer must enter the new mobile number; an SMS with a PIN on the new mobile number will be received by the employer. Enter the PIN and click “Change Primary Mobile”. Confirmation SMS will be received on the new mobile number, which is now the primary number.

Email id – The employer must log in to the Employer Portal. Under the “PROFILE” Menu, click on the link “Confirm primary email”. The employer needs to enter a new email id replacing the id that appears. Then click on the “Send Verification link”.

An email message will go to the registered email id. The employer must go to the email account and click the link in the message received. The verified email id will be recorded in the system, and in the future, all emails will be received on the new id.
50. If an employer or authorized signatory has multiple establishments, should he obtain registrations for all the establishments?
Yes, the registration procedure has to be completed for every establishment.
51. What if the employer forgets the User ID/ Password for login into the portal?
If the employer forgets the user ID or password, then the employer must click on the “Forgot Password” link in the login screen. The password can be reset using the establishment id, primary email id, and mobile number.
52. In case the employer does not fill the PIN details at the time of registration, can the details be filled at a later time?
No, in case the PIN is not filled up at the time of registration, the employer will need to fill up all the details again and request for a new PIN.
53. What is the main purpose for additional authorized signatories to provide their email and mobile details?
Email and mobile details are used to communicate other EPF account details after the registration process is complete. In case profile details are edited, the new details will be sent to the additional mobile numbers that have been provided as well.

EPF-and-ESI-registration

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Employees’ Provident Fund (EPF) Fund (PF)

Eligibility Criteria for Registration under Provident Fund

Benefits of EPF Scheme for employees

Tax Benefits

Easy transferability

Long-Term Financial Security:

Retirement Period:

Unseen circumstances:

Unemployment/Income Loss:

Resignation/Quitting of Job:

Death:

Disability of the employee:

Lay-off:

Pension Scheme:

Insurance Scheme:

Accessible All Over:

Partial withdrawals

Employee Provident Fund (EPF)

EPF ECR File

Universal Account Number or UAN

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ID proof:

Address proof:

PAN card:

Aadhaar card:

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Employees’ Provident Fund Registration-For already registered users

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Download ECR file

Prepare the ECR sheet

Prepare Text File

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Administration Charges

Employer Details

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Payment

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Employee State Insurance (ESI) - Introduction

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Organizational Structure for ESIC

ESIC Registration Process