There are no allowances for schemes provided by the private employees to the employees just like the Government employees. However, with the motive to help the employees working in the private sector to save a fraction of their monthly salary, the employee provident fund has been created by the government. The savings that have been done through employment provident fund can be used by the employee after getting termination or retirement. You need to know all about the EPF guide below.
More than 95% of the employees understand the importance of provident fund and that is why they enroll themselves in it. If you are also willing to know more about it then we are here to help you out. Here we are given the complete guide regarding the EPF so that you can easily avail the advantage of it.
Employment Provident Fund, EPF Complete Guide:
With the help of the employee’s provident fund, it becomes easier for the employees to handle their financial situation after getting terminated. Even if the employee is no longer fit to work or getting retired then also they get this fund and it helps them in sustaining properly. Most of the employees understand its importance and that is why they get enrolled themselves in it.
Also, Check – EPF Balance Check Online
Factors Included In the EPF Form:
whenever the employee fills up the employee’s provident fund form then he or she needs to fill the details including his gender, registered email address, marital status, educational information, date of birth, name of the husband/father, account number, organization number, company address former name of the company, previous employment details, and passport number.
Apart from all this, it is also important to complete the KYC details by providing the following, the driving license, the voter ID and the bank account number. Apart from this given information, it is necessary for the employee to provide the details including their joining date, provident fund ID number and also the UAN number.
What Is the Contribution by Employer and Employee in EPF?
The contribution for the employee provident fund account gets made on the basis of 12% of the basic pay. For example, if the monthly salary of Ram is rupees 40000 then the contribution towards the employee’s provident fund would be 4800 rupees that are 12% of the basic pay and also the same amount will be contributed by the employer also.
Withdrawal Policy from the EPF Account:
According to the EPF settlement act drawn by the government, if the employee needs to claim the final settlement then he or she should attend the age of 55 years. The total amount of EPF includes the employee contribution along with the employer contribution and the interest as well.
This rule of EPF also is traits that the employee can easily withdraw the full PF balance if he is of olive from the employment for 60 days or more than that. With the help of the UAN based form 19, the employee can easily withdraw the full PF balance from their account.
This facility is only available for those employees whose UAN is activated and verified by the KYC details including the bank account number and the Aadhar card number. UAN is basically the universal account number that is allotted is specifically to the subscribers of employment provident fund. It has become compulsory for all the employees and helps in maintaining the EPF account simply without having any complexities.
What are the Benefits of having an employee provident fund subscription?
If you are contributing to the employee provident fund monthly that it does not mean that you can avail the benefit only after retirement. It also allows the employees to enjoy the full access to the amount just like and advance and not as a loan. Also, such kind of advance is basically allowed only for the valuable purpose like purchasing a house or repaying the home loan, emergency medical need for a marriage of the children. Additionally, the advance amount gets section on the basis of the number of years of service and also the reason for the loan. The best part about this kind of advance is that you do not need to pay any sort of interest in it.
What Is The Process To Submit your Employment Provident Fund Claim Online?
There are some of the important factors that are required to be considered before submitting the claim for employee provident fund. The factors include the following:
It is important for you to activate your universal account number
It is necessary for you to ensure that you are using the mobile number that is registered in the form
You must have entered all the Aadhar Card details properly and you are having a valid Bank account number. Before entering the bank account number, you must double-check it. It will be the account where the claim amount will be credited.
If you are not a subscriber of EPF Account for more than 5 years it is necessary for you to mention your pan card number also.
It is necessary for you to determine that the online claim process is not accessible to the individuals who are not having the Aadhar card. It is necessary for the Non-Aadhar Cardholders to provide details like date of birth, bank account details and the personal details as well. Apart from this, it is necessary for them to submit their signature and it should be authorized by the employer.
Hence, these are some of the factors that you need to be known about the employee provident fund or EPF guide.