In 1952, government of Indian introduced this policy to make financial strategy much stronger for employee and policy replaces the previous policy known as employee provident fund ordinance and was launched in 1951. This policy is known as employee provident fund and miscellaneous 1952 and policy is making things much easier for all government employees.
Central Board of Trustees in association with employer, employee along with government is managing and operating this useful scheme. Ministry of labour and employment associates Employees Provident Fund Organization (EPFO) monitor the entire scheme related issues and progress. Government of India holds the rights to take final call related to this policy.
Main reason behind the introduction of this policy is to make financial condition much stronger of all employees that will help them to make their life after retirement much stronger and efficient. EPF committee brings various interesting, beneficial offers on basis of monthly, quarterly, half yearly and annually. As per rules and regulations, there is a criterion to deposit amount under this policy and respective person will receive interest under this scheme. This policy is free from tax related conflicts and deposit and withdrawal of amount is quite easy. There are plenty of features that make this policy one of the best scheme offered by government for better financial condition of employee after their retirement form service.
EPF scheme is one of the best schemes launched by the government and biggest scheme as far as number of person associated with this scheme. There are several facts that make EPFO one of the major contributor in field of policy making and their implementation. More than 5 billion members are enjoying the facility and counter is on. As per policy provision, EPFO is offering three valuable schemes and all are specified below:
a. Employee Deposit Linked Insurance Scheme, 1976
b. Employee Provident Fund Scheme, 1952
c. Employee Pension Scheme, 1995 (which replaced the Employee Family Pension Scheme, 1971)
1. Financial Security: This type of account are quite secure as far as security is concern and amount withdrawal is not so easy that helps in saving too.
2. Tax Free Earning: Under this scheme deposit of amount is tax free and if customers withdraw their amount after the maturity tenure of policy then that amount will be tax free too at the same time they should remember that this flexibility is not available in case of premature deposit from account.
3. Helpful in Emergency: if due to some reason or disability of person or any other reason affect the regular income of customer in that situation this policy will help to handle the situation in financial prospect.
4. Better Long Term Investment Option: This scheme is one of the best options for the people who look for better and reliable long term investment plans.
5. Insurance: As per the policy, members of this policy will get life insurance cover facility to better and bright future.
6. Pension Facility: members associated will PPF scheme will also get the facility of pension after the maturity of policy and this facility will help them financial after their retirement.
7. Globally Accessing Facility: Universal account number allow employee to transfer their amount from one to other employer. Accessing of account become much easier, all the information are just one click away for customer.
8. Suitable Funding Platform: Customers can invest their amount so that they can use in case of medical emergency or any other useful task.
According to regulation of this policy, EPF membership is mandatory to avail all the benefits offered under this policy,
a. This act is not available for the resident of Jammu and Kashmir.
b. Everyone become eligible right after joining the organization.
c. If any agency or organization offering employment to more than 20 candidates then giving PF is mandatory as per the policy.
a. Monthly Basis.
b. According to basic salary of employee.
c. Predetermined premiums.
d. Paid by the employer or employee.
e. Responsible agency invests the deposited amount as per their investment plans.
Current interest rate that offered by respective agency is 12% and interest rate may vary in following conditions
a. Minimum salary must be INR 6500, as per latest policy.
b. Organization where less than 20 person works.
c. Organization that manufacture beedi, jut, brick, guar gum and coir.
d. Silk industry identified by the Board for Industrial and Financial Reconstruction (BIFR).
e. In case of organization current year revenue is less than their investment amount.
a. As per budget introduced by the government for financial year 2016 and 2017, interest rate under this scheme will be 8.65%.
b. Interest will be calculated on the basis of deposited amount on individual accounts.
c. As we know that every state government operate this scheme and to monitor the regulation central government take the final decision regarding any modification in policy.
d. If employer direct amount towards EPS then interest rate will not be effective.
e. In case of any financial trapping account will be suspended by the authorize agency.
f. Interest rate will be effective on only deposited amount not in withdraw amount.
Employee can deposit amount as per their salary so that amount can be used for any instant need in near future. Whenever individual change their office then their amount will be transferred from account of current organization to new organization. EPF account can be transfer in online and offline mode as individual can use this facility as per their comfort.
After maturity of tenure of EPF account process if settlement can be completed in online process or traditional offline mode as per their need. User can track the amount, current interest rate and other relevant information from their account.
1.To know the current status of your open official portal of EPF.
2. Now select your state along with office that manages your account.
3. After this process, enter any extension code or any establishment code as per information required in form.
4. Now enter your PPF account number and click on SUBMIT button.
5. As per your credential related information will appear on your screen and if you have not submitted any information then error will generate and result will not appear on screen.
Under this method individual need to arrange and submit all the required valid documents in your nearest EPFO office and complete the process as per their instructions.