भारतीय कामगारविषयक कायदे






Loan Process in PF

You can take a loan from the EPF account. The best part is that you need not to return it.

You can withdraw some amount from the EPF during the job. However, you should take out money from this corpus as a last resort.

It can’t be used as any other personal loan. Your reason for PF withdrawal should be genuine. PF office verifies your application thoroughly.

It is not easy to get money from EPF. There is much documentation and a waiting period. Disapproval is common with the premature PF withdrawal.
If you really need money and you want to compromise your retirement corpus, then you can go ahead.
When Can You Take Loan from EPF

Every person has different priorities. For you, buying a tablet can be most important thing. But, EPFO will never give money for this. It has set rules for premature PF withdrawal. You can get money from EPF only for these 9 purposes.

1. Education

You can withdraw from PF for higher education of self, son, daughter, brother or sister.

2. Marriage

Marriage can be also the reason of PF withdrawal. You can get money for the marriage of self, and your son, daughter.

3. Medical Treatment

Medical treatment is costly today. You can get money for it from Provident fund. But the illness should be serious. You can withdraw the amount for the treatment of spouse, son, daughter, dependent father or mother

4. Purchase of Home or Plot

Purchase of home or plot is asset creation and it requires a big amount. The PF can be used for this. However, there are different rules for plot and home. I will detail it later.

5. Home loan payment

Home loan can be also paid by using PF.

6. Addition/Alteration of House

Provident fund can be also used for the alteration, repair or addition in existing home. EPFO discourage the PF withdrawal for these cases.

7. Calamity

Natural calamity can incur huge loss. In such cases you can withdraw from provident fund.

8. Lockout

In lockout situation you may not receive salary. To carry on your regular expenses you can withdraw PF.

9. Withdrawal before the Retirement

you can withdraw the majority of your corpus before one year of the retirement. 

Minimum Service Limit For EPF Loan

Did you find yourself eligible for partial withdrawal of EPF?  Do you have one of the above reasons? Yes? Still, you may not get the PF money. There is minimum service condition for each cause.

Marriage Min.7 years Service
Medical No limit of service
Real Estate Min.5 years of Service
Education Min. 7 years of Service
Home Loan Repayment Min.10 years service
Company Lockout no limit of service
Construction of House Min.10 year of service
Home alteration Min.5 years service
Pre-retirement no limit of service


Rules of PF withdrawal Before Leaving the Job

You can withdraw the PF money easily if you leave the job and remain unemployed for 2 months. Even in some circumstances you can get PF money just after leaving the job. But To Withdraw amount from EPF during the job, you have to fulfill many conditions.

1.        You have to fulfill the minimum service need. The best part is the duration of the service is total.  Duration of each job is added to this calculation, given you have transferred your PF accounts to the new job. Now you can transfer the PF amount easily with the introduction of UAN.

2.     There is a limit on the amount you can withdraw. It can be up to 36 times of your wages (basic+DA). The maximum amount for withdrawal depends upon the reason of PF withdrawal.

3.     You need to give proof of the reason you have mentioned. Let us see the conditions of partial PF withdrawal for each purpose.

PF Withdrawal for Marriage

You can withdraw from the EPF account on the occasion of marriage. The marriage can be of yourself, sister, brother, son or daughter.

The minimum service period for this advance is 7 years.

You can withdraw up to 50% of the total employee contribution.

You can use this reason 3 times in your life.

Marriage invitation card along with the application should be submitted through the employer .

PF Withdrawal For Education

You can withdraw fund for the education of self and children.

You should have completed a total service of 7 years.

You can get up to 50% of the employee contribution.

This option can be used 3 times in a lifetime.

You should attach bonafide certificate duly indicating the fees payable from the educational institution.

PF Advance for Medical Treatment

You can take an advance from PF account for the treatment of self, spouse, children and parents. There should be hospitalization for more than a month. If the claimant is an employee, he should have taken leave from the organization.

You can avail advance in case of TB, leprosy, paralysis, cancer, mental derangement or heart ailment without the hospitalization.

You have to give the certificate from the doctor stating the hospitalization need. In case of above mentioned disease you need to give the certificate from specialist doctor.

You can take 6 times of wages (basic+DA) or total employee share, whichever is less.

There is no limit on the frequency.

Purchase Home or Construction Using PF Money

Buying home or plot is one of the most important decisions of life. We invest most of our savings on this. But do you want to compromise with your retirement years. Think about this before applying for PF withdrawal. You can withdraw from PF for the purchase of a home or construction of the house only once.

You must have completed 5 years in service.
Property should be registered in the name of self or jointly with spouse
There should not be any joint owner of property other than the spouse.
You can get 36 times of wage (basic+DA) for this purpose.
You need to give a filled
declaration form with the application.

EPF Loan for Buying a Plot

PF money can be also used for buying a plot.
You can avail the withdrawal facility for purchase of plot only once.
You must have completed 5 years in service.
There should not be any co-owner of the property other than the spouse.
You can get 24 times of wages (Basic +DA).
You need to give a copy of the purchase agreement.
You should give a declaration with the application.

Alteration or Addition in The House

You must have completed 5 years in service.

At least 5 years after the construction of house.

You can get 12 times of wages.

Property should be owned by you or jointly with the spouse.

Only once in service.

Alteration proof is required.

Repair of House

All the condition is similar to the alteration of house except you have to wait at least 10 years after the construction of house.

Lockout of The Company

If you are not getting wage for last two months and your company is locked out or closed for at least 15 days, you can take a loan from EPF.

You can get the amount equal to your unpaid wages.

There must have balance in employee contribution. You can check your PF balance easily through online mode.
If closure has been for more than 6 months, you can also use the employer’s contribution. (Do you wait for such a long time?   )

Withdrawal Prior To Retirement

You must have completed 54 years of age

Retirement should be after one year.

You can get up to 90% of the total provident fund balance.

You need to give a certificate from the employer stating the date of retirement.



In Case Of Calamity

There is no condition of minimum service.
You have to give certificates of damage from competent authority.
You can get up to 50% of the employee share.
No other condition.

The Form and Process of Applying for PF Advance

To get the advance from EPF, you have to apply through the employer. You can get PF money without the signature of employer after leaving the job, but during the job you must get the signature of the employer.

You should use form 31 for any kind of advance. You can download this form from the EPFO website.

You need to attach a declaration form with the application if you are taking advance for following purpose.

Flat or plot purchase
House construction
Alteration or addition
Repair of the house

The employer will process your application after the verification. The employer should send the application the regional PF office.

Time to Get the PF Advance

You should get the advance within a month. It also depends upon your employer’s promptness. Some regional PF offices take more time.

You can check status of your claim through the EPFO website.

How will I repay

The withdrawal from PF is an advance, not a loan in true sense. Hence, you need not to pay it back.

In case you could not use the total advance, you can refund the remaining amount through the employer. The amount should be refunded within a month.

Get EPF Money Immediately After Resignation!

Yes, It is possible to get EPF money immediately after the resignation. Few people know that EPF can waive ‘two month’ waiting condition for certain employees. This rule is prescribed in the EPF act itself.
There are many deserving people who can take benefit of this waiver, but due to the lack of information, they have been forced to wait for 2 months. Sometimes they have to spend money just because of this waiting period. Suppose you have to leave the city just after the resignation, but you can’t apply immediately. You have to come back after two months to start the withdrawal process.

Indeed, two month waiting period is to deter the withdrawal of PF, so that your retirement corpus remains intact, if you find another job soon. But if you need money genuinely and there is a clear case of not joining a job in India then you can withdraw the total EPF balance just after leaving the employment. Let’s see the conditions.

Get EPF money soon after the resignation, If you are going Abroad

Those employees who are going abroad for settlement and they don’t intend to return soon, can Apply for immediate PF withdrawal.
Those employees who have gotten employment in a foreign country can also apply for PF Withdrawal just after the resignation.

To avail this concession you have to give proof of that. You will have to produce visa copy as well as appointment letter, if any.

           

Female Member can withdraw money if she is leaving service for marriage

Yes, this is also a less known waiver. But in the EPF scheme document (section- 69 para-2) this consideration is clearly mentioned. In this case also you have to proof of the marriage. It may be a wedding card as well. This provision can be very useful for those female members who leave a country or city just after the marriage.

There is other regular case when EPF is disbursed just after the end of the service. These are after the retirement  or death of the employee. You can also take non refundable loan from the EPF.


Our opinion, Don’t rush for PF withdrawal just after leaving service. It is very hard to accumulate the retirement corpus, Please don’t put it at risk by withdrawing. Instead, one should transfer it. Also premature EPF Withdrawal can make you liable to heavy income tax.

Nowadays, universal account number (UAN) has made the EPF transfer very easy. You can get the UAN online easily

Why Should You Avoid PF Withdrawal

1.     EPF is retirement corpus. You should not touch it as far as possible. It becomes very tough to build a retirement corpus in older age.

2.     You can easily transfer PF balance through the online process. Build your retirement corpus by adding the PF balances.

3.     Your PF withdrawal amount becomes taxable, if it is withdrawn before the 5 years of the PF account opening.

4.     It is against the rules if you withdraw the PF balance of an earlier job while you are still employed.

You should withdraw the PF amount only when you don’t have any job for more than 2 months and you are not going to get a job. According to the rules you can’t withdraw PF amount within 2 months of leaving the service. Although in certain condition you can get the PF amount immediately after leaving the job. Even, if situation arises you can take loan from the EPF account.

Online PF Withdrawal Facility

Online facilities have helped you tremendously. Then why should there not be online PF withdrawal facility. Actually, it should have started years ago. Unfortunately, EPFO still could not start online PF withdrawal facility. You can only transfer EPF online. EPFO has promised online withdrawal facility with the online transfer process. But, it could not. We have to wait some more months. However  universal account number (UAN) of PF is going to change the whole process of pf withdrawal and transfer. Do you know your UAN number? No, you can find out the UAN number online.

Forms for EPF Withdrawal

You have to use Form 19 for EPF withdrawal. Your employer should give this form to you. Else, you can directly download form 19 from the EPFO website. With the provident fund, you may also like to withdraw the pension amount. However, you can get scheme certificate instead of pension amount, if your service is for less than 10 years.  If you have served for more than 10 years, you will get pension only, that also over the age of 50. To withdraw the pension amount you have to fill the form 10 C.

Documents You Have To Collect

Relax, you have not to give any documents for PF withdrawal. But, you must have some information beforehand.

PF account number
Date of joining
Date of leaving
Bank Account number (it should be the same which was registered by your employer)
IFSC code

Also, you have to give a copy of blank cheque for account number assurance. There may be error in writing the account number.

Above all, the most important thing is the good relation with the HR department of your employer. If he cooperate you need not to worry for anything and you will get the money quickly as well. Else, getting EPF money may be challenging for you. However, you can apply for EPF withdrawal without the approval/signature of the employer. You can see instruction for every column of the form 19.

Procedure for Applying

1.     Visit to the human resource department of the employer with a copy of the blank cheque is enough.

2.     The HR department will give you the form 19 and 10 C. You can have it beforehand.

3.     Even you can ask information about your joining and leaving date from the HR.

4.     Submit both the forms with HR.

5.     HR will attest the form and send it to the regional PF office.

6.     The regional PF office takes about one month to process your application.

7.     EPFO deposits PF amount directly to the employee’s account.

You can track your application status through this link. You can also know thePF balance in your account.

Common Problems in Withdrawal

Signature can mismatch. After a long stint your signature can change. If this is the situation, then you have to make an affidavit. This Affidavit should be also verified by the employer.

There may be errors in spelling of your or your father’s name. Again, your employer will rectify if first, then you can apply for withdrawal.

You may have closed your earlier account. An affidavit and employer attestation would work in this case as well.

The employer did not submit your recent PF contribution. If it happens, you can complain to regional EPFO. Else, you can wait for some days.

You have not served your notice period and the employer is not supporting. Don’t worry, you can withdraw EPF without the employer’s signature as well. If you have universal account number, don’t worry for this highhandedness.

Your employer doesn’t have a record of the EPF account number. To get the PF number search your old Pay Slip. Generally it has the PF account number. Still, you can’t get the PF number, write letter to the regional Pf commissioner with all the details (name, father’s name, DOB, Name of establishment, Location, date of joining date of leaving) and ask for PF number. Use register your grievance facility of EPFO.

The Company is no more. In this case you should follow the procedure of PF withdrawal without employers signature.

Online EPF Transfer and Withdrawal Strengthens Your Retirement Saving

Online EPF Transfer and Withdrawal facility helps the employees more than the expected. This small initiative can increase the retirement saving considerably. The hassle of EPF transfer forces people to withdraw it or just leave the amount in the account. These inactive accounts don’t earn any interest. Online EPF Transfer and Withdrawal reduces this hassle. Hence now onward you should not delay.

You can start your online transfer of EPF right now.  This will result in greater saving. In Practice majority of the employees don’t transfer the amount after changing the job. According to EPF rules if you are only changing the job you can’t withdraw the amount. But to avoid the hassle employer as well as employee both gives a false undertaking of unemployment. Hopefully this will end by online EPF transfer and withdrawal.


Benefits of Online EPF Transfer and Withdrawal

·          This service makes transfer and withdrawal of the EPF transparent. The employee can track its application just by one click. They are not required to go from one desk to another.

·          All the Applications of Online EPF Transfer and Withdrawal will be tracked centrally from the Delhi office. This makes regional PF officials more accountable.

·          Application processing is faster. Now you can expect your PF transfer in 3 weeks.  Now EPFO Employees are required to data feed the physical application. This saves time.

·         Now it is the responsibility of EPFO to get the response from the employers. Usually after the resignation of the employee, the employer becomes reluctant to do paperwork for him. Now he has the only attest the application form just by one click.

·         Also, because of online application, there would be less error. This also makes application processing faster.

How Online EPF Transfer Works

Employee provident fund organization is the custodian of your Provident Fund. It invests your money in safe option so that you can get assured return after the retirement. But you have not to directly deal with it. Rather your employer deals with it. Your employer does the paper work, authenticate and deduct mandatory contribution from your salary. Unlike Banks or any financial institution EPFO does not ask for any KYC documents for authentication, rather employer authenticates you.

           

·         In case of EPF transfer or withdrawal EPFO acts only after your employer’s authentication. Earlier this was done by physical paper. You used to give the application form to the employer. Employers used to verify and send to the regional PF office. In the EPF office also files used to move at snail pace.

But in the online process you submit your application directly to the EPFO. Since it is in digital form it is simultaneously sent to the regional PF office, your previous and present employer.

·         Now regional PF office tracks application with the employer.

·         Your employer(s) gets the message of application. Now it has to attest it so that EPFO get assured about the identity of the employee.

·         But employer itself also has to satisfy that the original employee has applied for PF transfer or withdrawal. That is why you have to submit signed hard copy of your application with the employer.

·         After this assurance employer attest your application with the digital signature. The employer does this process at the EPFO portal.

·         Now EPFO has to work on the process of transfer or withdrawal.

·         It seems very easy and it should be also. But in realty EPFO itself has many steps of processing the application. Also, your employer can also take several days just to attest the form.

Online EPF Transfer and withdrawal Actual Process

·         Your first step is to check eligibility for online transfer. This facility is not available for everyone as many organizations have not given their digital signature yet. Between your past and present employer one should have given the digital signature.

·         The employee can fill the application form on the website of the EPFO (www.epfindia.gov.in) with all the details.  Besides Personal details Employee will be asked to give its PF account number, Old and new employers EPF code. You should have these before filing the application. Employer’s code can also be searched from EPFO website.

·         After Submission of application you have to download the printable application form. You have to submit this application form either to your present or past employer. This process is to validate that real employee is trying to transfer the EPF amount.

·         On the other side copy of the application will directly go to the employer who has the digital signature. Another copy will go to the respective regional PF office.

·         After the verification from the employer(s), EPF will be transferred. EPFO commissioner also said that if required there would be provision of penalty also.

           

What About Online EPF Withdrawal Process

Earlier EPFO announced that it will start the online EPF transfer and withdrawal process simultaneously. But it could not start any service on time. Whole initiative was stuck on unavailability of digital signatures. At last EPFO came to the online EPF transfer facility.  Now gradually many employers gave their digital signature and we can hope that soon EPF withdrawal service will start.


PF Number Portability

Finally EPFO has introduced the PF number portability. The Portable number is being called universal account number.  It will make the PF transfer much easier. In this initiative every employee is allotted a unique number.  This number will work wherever they get employed within the India. So there will not be any need to even transfer the PF from one account to another. You can know. Your employer should tell this number. If  employer doesn’t tell the UAN number you can know it online as well.

 What Should You Do

If your employer has given digital signature, then you must go through the online process. Either offline EPF transfer process is still there. Online EPF withdrawal has not started yet. Hopefully it will be implemented in the next few months. It is not advisable to withdraw the PF money after changing the job. Retirement saving should be in inaccessible account.

Online EPF transfer has made our life easy. Now you must transfer your PF instead of EPF withdrawal, because PF transfer also saves your tax.

           

It’s Your Money, Here Is the Rule to Withdraw EPF Without Employer Signature

Do you want to withdraw EPF without employer signature, because he is not cooperating? Do you want to go directly to EPFO because previous employer not signing your EPF Withdrawal forms? You have not served notice period and your company is not ready to attest your form without paying for notice period? Or even you want to withdraw your provident fund without resignation. You can’t get employer signature because the company is closed now.

There may be many reasons which force you to withdraw the EPF amount directly from Employee Provident Fund Office. Fortunately, there is a way to get your money back. But before that you should know the rule about EPF withdrawal before the age of 54 years.

Rules of EPF Withdrawal

·         You can withdraw your EPF amount if you have completed more than two months of service. There is rule if  you fulfill some  conditions.

·         You can withdraw your EPF amount if you have not got any job till two months after the resignation.

·         You can also partially withdraw some amount of PF in some situation.

·         Your employer should send the attested form of the EPF withdrawal within one week of submission.

Reality Is Different From Rules
An employer cannot deny signing your EPF withdrawal form, and he should not, because PF is your money and no one has any right on it. Still, there are instances of high-handedness, and you may be forced to withdraw EPF without employer signature.

You Can Get PF without Employer Signature

If a situation arises, you can bypass your employer and get your EPF without employer signature.

Option 1

If you have The universal account number (UAN) of PF, you can directly apply for the PF withdrawal. There would not be any need of verification from the employer. However, till now you can’t use UAN method for old PF account. Also, few employers have given UAN to its employees.

Must Read-   Forget Online PF Transfer, Universal Account Number (UAN) is here

Option 2

You can directly submit the withdrawal form to the regional PF office. But Before accepting your direct application EPFO want to make sure that the right person is applying for PF. Therefore you have to attest your application form by any of these authorities.

           

·         Manager of a bank.

·         By any gazette officer. 

·         Member of the Central Board of Trustees./ committee/ Regional Committee (Employees’ Provident Fund Organization).

·         Magistrate/ Post/ Sub Post Master/ President of Village Panchayat/ Notary Public

1.     As you can see, the list is long, who can attest the withdrawal form. But in practice attestation by the bank manager is preferable. Also Manager should be from the branch, where you maintain an account.

2.     Note that you have to take signature and stamp in every page of the application.

3.     Since this is bypass route, EPFO does not encourage this process. Also, there is more chance of fraud as well. Hence It asks for a letter which should state the reason of direct application for EPF withdrawal.

4.     It is advisable to attach evidence, if any, of non cooperation by the employer. This will give weight to your application. Try to correspond in writing with your employer, so that you have some evidence of non-cooperation

5.     Attach an indemnity bond (affidavit) in a 100 rupee stamp paper. Although it is not mandatory according to rules. But you should not take any chance.

6.     Also attach service proof. You should attach copies of payslip, ID card, form 16 or appointment letter from employer to substantiate.

7.     Also attach copy of your identity proof as well as Address proof.

Other Points to Note for EPF Withdrawal without Employer Signature

1.     If the bank account number would be same as with the EPF record then it will help. Try to give your salary account of the previous job.

2.     Also if the attesting bank manager will be from the branch of your salary account branch then it would be better.

3.     PSU bank manager carries more weight.

You have the way to withdraw EPF directly, but it does not mean that you should prefer this. Avoiding employer and going directly to the EPFO takes more time and more documentation. Probability of rejection also increases in this process.  Hence, you should try to take employer signature.


5 Tips to Avoid Direct Withdrawal of EPF

1- Try To Convince Your Employer
Try to tell your employer that it is his legal duty to sign your PF withdrawal form. He should know that you are aware about all the rules and regulation. Have some sweet talk as well it may work in 50% of the time.

 2- Take Present Employees In The Loop
 Talk in the presence of your earlier colleague who presently works there. The HR department would not like to give bad impression to its current employees.

3- Search A Mediator Who Can Talk To HR
Try to search  a person in your old office who can mediate between you and the employer. Sometimes this method works better than any other process.

4- Communicate In Writing
Don’t talk with your employer verbally or through the phone for getting signatures in the form. Send your EPF withdrawal form with registered post or speed post. Further communication should be also with this  medium. Have receipt of the post as well as ask for proof of delivery. Postal department takes 10 rupees to provide this. It has the signature of the person who had received the post. Collect it from the post office. This will deter your employer to act arbitrary.

5- Threat Him about Legal Action

According to labour laws and EPF rules it is illegal to withhold the PF money. If any employer is doing the same, then he is against the law. You can drag him in the court as well as complain to vigilance commissioner EPF.

How To Teach lesson to Erring Employer

File Grievance with EPFO
You can complain about the malpractice of employer to the EPFO. It is illegal to withhold the PF money of any employee, EPFO should act on it strictly. For this go through these steps.

a. Please collect evidence of employer’s unsupportive behavior as much as possible.
b. File grievance at the
online portal of EPFO. Also upload the copies of all of your evidence. It should be in PDF format.
c. Wait for one month and check the status.
d. File an RTI with EPFO and ask what that action has been taken on your complaints. This will force the EPFO to act upon erring employer.

Send Legal Notice

Hire a lawyer and send legal notice. You should state about all of your communication and give a copy of evidence with the legal notice. You can file your case with labour court as well. If possible, try to make a group with other harassed employees of your previous company. Below is the detailed advice of a lawyer from lawyersclubindia.com

Issue a proper notice to your company (which you can also send) addressed to your appointing authority, MD, Company Secretary, citing details of submission of PF forms, with the name designation of the employee who received PF forms from you and date, and ask them to reply to you in writing, along with the original copy of acknowledgment issued by PF office, say within 15 days, by registered Post/speed post only, or you shall be constrained to proceed against the company in a legal manner at their cost and consequences. You can even ask the company to disclose the name contact address: current and permanent with phone numbers, email id of the person who has caused default and maintaining a studied silence, despite your unlimited number of representations dated………..and dated……..as you wish to proceed against the individual in his individual capacity also.

Last Advice for Our Readers

If you have a job in your hand, you should go for online transfer process and choose verification by present employer. Your previous employer is bound to approve the PF transfer.

However, we have to still see the benefit of PF number portability in such cases. The Universal Account Number reduced the role of employers. Check the status of your UAN today.

Online PF Transfer Step By Step Process

Finally, you can transfer your PF amount online. After waiting since 1st July now EPFO implemented Online PF Transfer facility. But those who wanted to withdraw the PF amount through online process should be disappointed. In response to my earlier article on online transfer and withdrawal of PF, most of the readers were waiting the online withdrawal facility. Nevertheless, this facility will also benefit a lot because it cuts paperwork and physical travelling of papers to PF office.

Benefits of Online PF Transfer Facility

Less paperwork

Now you are not supposed to search PF transfer form, take a print and fill it manually. You can fill all your details in the website itself.

No travelling of Forms

Till now your employer sends the transfer form to the EPFO office with its recommendation. But through the online process it is not required to sent the application form. Instead, it can verify its employee details at EPFO portal.

           

Process of Online PF Transfer

Before initiating online PF transfer you have to fulfill certain conditions.

1.     Your PF submission data from at least one employer should be in the EPFO portal. Sometimes it is not because of certain reasons.

2.     At least one of the employers, previous or present should have submitted its digital signature to the EPFO. Many of the employers did not submit its digital signature. Now after the employee pressure this will happen swiftly.

           

3.     Your personal information should match with EPFO database.

4.     You should be registered in PF portal. Registration is easy and takes only five minutes.

You should have following information beforehand the online transfer form filling

Your Full PF account number from both the employer. It should be like this BG/BNG/0015810/000/xxxxx. That is state code/regional PF office code/establishment code/extension/employee PF number. Extensions normally remain
000. You can omit this also.

Your Bank Account Number and IFSC code.

Date of joining and leaving the establishment. It should be pre-filled automatically. But if it is not there you have to fill it.

In the form you have to give
details of both your employment, so that it can be verified that real person is trying to transfer. That is why your personal details should match with both the employers. However, this process is changing with introduction of PF number portability. You check the status of portable PF number allotment online.

If you have all the
details, then process is very simple. EPFO website has also given flowchart of the process. What I found most problematic is that employers have not given their digital signatures to the EPFO. Also, your PF Data may not be available in PF portal. I myself could not go ahead because my PF Data is not available in EPFO database. While I can see from that very portal that my company regularly submits my PF amount.

Finally, you
have take printout of the form, sign and submit it to your present or previous employer. While filling the form you have to choose that which employer will attest your form.  Normally you should choose a present employer. This would make Follow up easier. Take care to submit the application printout within 15 days. If you fail to submit within this time limit, your employer can reject verification. Actually employer plays important role in this whole process. The employer has to verify the authenticity of the employee and its signature also. It is necessary so that your hard earned money can’t go in wrong hands. After verification your employer attests your application in the EPFO portal. EPFO do not ask the signed printout, the employer keeps it for the record.

Government has increased the minimum pension amount in the Employee Pension Scheme. Now employees of organized sector will get minimum rupees 1000 per month. This was much awaited because only 500 rupees per month was meager to survive. Earlier employee used to get at least 500 rupees pension monthly.

But very few people are aware about this pension facility for every employee. They don’t have an idea that how much pension they will get after the retirement. Today I will tell you the features of Employee Pension Scheme and pension calculation

Who Gets Pension through EPS

Every organized sector employee gets pension if he contributes for EPF. There are 6 crore such employee in India. Employee Pension Scheme is clubbed with employee provident fund.

What Is the Contribution for Employee Pension Scheme

According to PF rules employee has to give 12.5% of its basic salary plus DA for EPF. Employer also matches the amount. But unlike your whole contribution goes to EPF, some contribution by employer goes to EPS kitty. From the employer contribution maximum Rs 1250 (8.33% if salary less than 15,000) goes for Employee Pension Scheme. Remaining amount goes to EPF and EDLIS.

Employee Social Security Scheme and Its Contribution Details

Employee

Employer

Employee Provident Fund (EPF)

12%

3.67%

Employees’ Pension Scheme (EPS)

0

8.33%

Employees Deposit Linked Insurance (EDLIS)

0

0.5%

EPF Administrative  charges

0

1.1%

EDLIS Administrative charges

0

0.01%

How Much Pension Will You Get – Calculation

Do you have idea how much would be your monthly pension? Probably your answer will be NO. And the reason behind this ‘No’ is complex calculation of employee pension. But if you dig deep, calculation of pension amount is very simple for most of the people. Pension account of 95% employee gets only 1250 rupees per month. Also most of the employee in India has their job after 1995. Calculation of pension money for those workers who fulfill above two criteria is very easy. I am telling how to calculate pension amount only for such employee. Those who are either employed before 1995 or whose contribution is more than 1250 rupee.

·         Minimum Pension you will get – Rs 1,000

Monthly Pension Calculator

Pension amount= (Pensionable salary*Service Period)/70

1.     Pensionable salary is the average salary of preceding 60 months. Most of the employer restricts pension contribution to the mandatory 8.33% or Rs 1250, whichever is minimum. In such cases the pensionable salary would not be more than Rs 15000.

2.     Only basic pay and DA is considered as salary.

3.     If you have completed more than 20 years in service then add two years bonus in above equation.

4.     According to new rules your pension can’t be less than 1000 per month.

5.     You are eligible for pension after the 10 years in the service.

Alternatively you can get your monthly pension amount just by filling your service duration in this pension calculator.

When Will You Get Your Pension

1.     Employee Pension Scheme is to secure your retirement years. It is planned in such a way that any organized sector employee should not suffer in old age for lack of pension. Therefore you can get pension only after the age of 58.

2.     If you are not in service then you can get pension before 58 years. But your age should be more than 50 years.

3.     Family of the deceased employee can get pension prematurely. In this case minimum requirement of service is only 1 month.

4.     A permanently disabled worker can also get pension before the time limit.

How Will You Get Pension Money Back After Leaving The Service?

Service More Than 9.5 Years

If total duration of your service is more than 9.5 year. Then you are only entitled for pension after the age of 50 years. You will  get only Employee Pension Scheme Certificate. After 50 years of the age you can produce this scheme certificate for start of the pension.

Service Less Than 9.5 Years

To get pension contribution should be for minimum 9.5 years. Therefore if your total service period is less than 9.5 years then you will get refund.

How to Claim Pension Money

Having Scheme Certificate of EPS

After the age of 50 you can get pension by Scheme Certificate. You have to fill Form to get the regular pension. You can read detailed instruction for filling this form in EPFO website.

Note- Availing pension benefit before 58 years age will give you reduced amount. Pension is reduced by 4% for remaining years. For example if are going to get 100 rupees pension at the age 58, then you will get approximately 70 (depreciated value at the rate of 4% per year) rupees at the age of 50.

If you have more than one Scheme Certificate then you can directly go to the EPF office. For that you would have to
get attested your Form 10-D by the bank manager. Bank should be preferably PSU (e. g. SBI, BoB, PNB, Canara Bank, Allahabad Bank).

You don’t have Scheme Certificate of Pension

If you have not completed 9.5 years of service then you have to claim for pension refund. You have to fill the form 10-C getting you money back. Normally you have to fill this form along with EPF Withdrawal Process. You can read detailed instruction of filling Form 10C from the EPFO website. This form should also be submitted through your employer.

Note- You will get pension fund withdrawal benefit only after completing at least 6 months in service.

I recommend that if you got another service or going to get one then you should transfer your pension fund instead of withdrawing.