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    The Moneycontrol
    EPF Guide

    The Employees’ Provident Fund (EPF) has been one of the best investments to build a tidy retirement corpus. Investments earn us tax deduction benefits, interest and returns are tax free and it’s easy to invest. Over 6 crore people invest in EPF and its corpus is over Rs 10 trillion. Moneycontrol’s EPF guide gives you the nuts and bolts of EPF and offers a glimpse of what the future holds for an investment that every salaried employee loves.

    Higher pension: EPFO field officers get 20 days to complete assessment of joint applications

    The deadline for employees to file their joint applications to claim pension on their actual, instead of statutory salary, is June 26.

    Higher pension calculation: Should you opt for higher pension per EPFO’s new formula? It’s complicated

    Higher pension on actual salary: In order to avail of this, you will need to transfer funds from your PF to your EPS account, computing which is a challenge. Plus, there are other challenges when it comes to claiming what you’ve contributed. Also, the pension rules can change in future

    Higher pension calculation: EPFO announces formula for calculating higher pension on actual salary

    Higher EPS pension: The long-awaited method of computing higher pension on actual salary for those who choose this option is out. The last date to file joint application to claim higher pension is June 26

    Calculate your EPF corpus at retirement

    Your EPF corpus is your retirement nest egg. The higher this corpus, the better. It depends on your age, contributions, basic salary and the EPF interest rate that the EPFO declares every year.

    Seeking higher EPS pension? You have only five more days to apply

    Higher EPS pension deadline: The deadline to apply for higher pension on actual basic salary instead of the statutory limit of Rs 15,000 has been extended to July 11. Here’s everything you need to know about eligibility, the procedure and calculation. Is it worth your while?

    Deadline for choosing higher pension option extended to June 26: Your key questions answered

    While higher pension is desirable, numerous rules and grey areas make the decision-making process a complex affair. Here is a list of things you need to be aware of.

    Applying for higher EPFO pension? Key factors you must consider

    Employees and employers have to submit a joint declaration before May 3 for employees to be eligible for higher pension in line with the Supreme Court’s November 2022 verdict.

    Watch

    • Video: Deadline extension to file application for higher pension: What’s in store for employees? | Simply Save

      By June 26, employees will have to decide whether they want to apply for a pension on a higher salary. The process is cumbersome and riddled with ambiguities, making it difficult for employees to make a choice.

    • Video: Find out answers to all your questions on withdrawing from the EPF account

      If you are faced with a financial crunch due to the COVID-19 crisis, you can now dip into your employee provident fund (EPF) corpus. The Employees’ Provident Fund Organisation has opened up withdrawals from the account after receiving government approval. Read on to find out answers to all your questions on withdrawing from the EPF account

    • Video: Should one contribute towards Voluntary Provident Fund?

      Most of the salaried employees love EPF due to tax-free and secure returns, ease of investing and withdrawal benefits. But there is a way to increase the contribution towards EPF and voluntarily contribute more towards the retirement corpus. So, should one opt for VPF? Watch the video to find out.

    • Video: NPS vs EPF: Which one is better for investment?

      National Pension System and Employee Provident Fund, both the retirement options are overseen by the government but they differ from each other on various parameters. So, which one is better? And how much money can one withdraw upon reaching the retirement age? Watch the video to find out

    SC permits pension contributions on higher salary. What’s in store for employers and employees?

    While higher pension contributions would mean higher pensions for the employees, they should keep their current age, stage of employment, risk appetite, health condition, cash flow requirements, and tax impact, in perspective while deciding on whether or not to contribute to the EPS scheme on higher salary.

    Explained: How EPF’s taxable and non-taxable accounts will work

    Employees contributing over Rs 2.5 lakh to their EPF account will feel the pinch of tax on interest on the excess amount this year, as the rules will be implemented when EPFO credits interest for FY 2021-22.

    Link your provident fund UAN with Aadhaar: Here are the steps to follow

    You link the two through the EPFO member portal. Activate your UAN if you haven’t already and log into the account.

    Frequently Asked Questions
    What is Employees’ Provident Fund (EPF) scheme?
    EPF is a retirement scheme that is compulsory for those with basic salary of under Rs 15,000 and voluntary for others. But employers typically deduct up to 12 percent of your basic pay every month as your contribution to EPF and contribute an equal amount.
    What are the benefits of being an EPF subscriber?
    It promotes compulsory savings for your retirement. The rate of return is among the best in relation to other debt instruments and it’s tax-free.
    How is the interest rate decided?
    The EPFO board of trustees under the Ministry of Labour decides the rate of interest, which is approved by the Finance Ministry, every year. For the financial year 2019-20, the interest rate was 8.5 percent.
    What tax benefits does the EPF scheme offer?
    Your EPF contributions earn you a Section 80C tax deduction benefit, up to a limit of Rs 1.5 lakh. The interest you earn as well as maturity proceeds are tax-exempt.
    Am I allowed to make withdrawals before retirement if the need arises?
    Yes, if you need the money to purchase or construct a house, to repay a home loan, in case you or your family members suffer from any critical illness, to fund your marriage or that of your children or siblings or even for your children’s higher education, subject to certain conditions.
    Can the funds be withdrawn in case of job loss?
    Yes. If you remain unemployed for more than two months, you can withdraw your entire EPF balance.