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- How new EPF rules are going to impact you
- How to check PF balance: Here are 5 ways
- How to know your PF claim status
- What is EPF scheme and how to calculate PF balance?
- How to calculate Employees' Provident Fund balance and interest
- How to download EPF passbook
The decision to extend EPF contribution will give further relief to small businesses who are facing a cash crunch. The move will benefit more than 72 lakh employees.
EPFO may cut 8.5% rate declared for FY20 because of declining return on investments and cash flow.
"Recently published provisional payroll data by the EPFO highlights the ever growing trend of increasing subscriber base for EPFO, since the collation of payroll data from September 2017," the Ministry of Labour & Employment said in a statement.
Artificial Intelligence is playing a major role in bringing down the withdrawal time from the usual requirement of 10 days.
Out of this, 15.54 lakh claims, which saw disbursement of Rs 4,580 crore to claimants, were related to the recently introduced COVID-19 advance under Pradhan Mantri Garib Kalyan Yojana (PMGKY).
All types of online claims, i.e., provident fund, pension, partial withdrawal and claims and transfer claims can be processed under this novel initiative.
April was the first month of the nationwide lockdown imposed to prevent the spread of Covid-19 as a result of which all industries and establishments were shut down during this period, extending to May and June though it was partial in the third month.
Due to on-going coronavirus pandemic, EPFO provided relief to the employers by providing relaxation in making the statutory deposit for March 2020. However, this decision would not lead to interest loss for members of the EPF scheme. Here's why.
The ministry on Monday notified lower rates of provident fund contribution at 10 per cent, increasing the in-hand salary of 4.3 crore provident fund subscribers. Last week, Finance minister Nirmala Sitharaman had announced the reduction of statutory provident fund contribution by both employers and employees for the next three months to 10 per cent of basic wages from 12 per cent.
This includes Aadhaar seeding for 39.97 lakh subscribers, mobile seeding (UAN activation) for 9.87 lakh subscribers and bank account seeding for 11.11 lakh subscribers, the Employees’ Provident Fund Organisation said in a statement on Wednesday.
The funds from EPF account can be withdrawn for various purposes such as marriage, buying a house, repayment of housing loan etc. However, there are certain conditions that must be met to withdraw money. Here's everything you need to know about it.
While reduction in PF rates will give Rs 6,750 crore liquidity relief, the reduction in TDS and TCS rates for non-salaried specified payments and specified receipts will release Rs 50,000 crore liquidity into the system.
The data also showed that during September 2017-March 2020 period, the number of net new subscribers was around 1.55 crore. The net new enrollments with EPFO was 15.52 lakh during September 2017-March 2018.
As per the announcement, due to pandemic situation, the government will amend Employees Provident Fund withdrawal rules and also, will pay both employer and employee contrition to the EPF account for the continuity of the account for the next three months.
Earlier on April 30, the EPFO allowed employers to file monthly EPF returns without making simultaneous payment of dues, which gave a relief to about 6 lakh firms amid the lockdown.
PF revision will benefit 43 million provident fund subscribers across EPFO and exempted establishments and 650,000 employers. It will not cover public sector enterprises and state public sector undertakings.
Your employer can still continue to contribute to your EPF account at a rate of 12 per cent. Here is how.
During the April-February period in 2019-20, the number of net new subscribers rose to 76.53 lakh compared to 61.12 lakh recorded by Employees' Provident Fund Organisation (EPFO) during the entire 2018-19.
The reduction in EPF contribution to 10 per cent from 12 per cent was announced by Finance Minister Nirmala Sitharaman as a part of the Atmanirbhar Bharat Package to provide some relief to employers and also to increase the take-home pay of the employees.
If your EPF account is not KYC compliant, then the EPFO can reject the request raised by you and ask you to first make your account KYC compliant.
The interest rate is a big sentiment booster and any cut may further hit the employee sentiment.
To apply for claim online, an EPF account holder should satisfy three conditions. Also as per amended EPF rules, members can now withdraw from their EPF accounts to tackle covid-led financial distress.
The rules regarding the joining of Employees Pension Scheme (EPS) by an employee was amended by the government via a notification dated August 22, 2014, effective from September 1, 2014. Here is how the latest rules impact you.
The change does not increase the employee’s total income, but only ensures that a part of the income that was earlier deposited with the high interest generating EPF, will now be paid upfront. The new scheme would be for three months.
Here are the 17 questions and their answers for those members looking to transfer their EPF accounts to new employers.
Given below are five reasons why your EPF withdrawal claim can get rejected by the EPFO and what you should do to avoid the rejection of a claim.
It is important that your correct bank account with IFSC is linked to your Universal Account Number to receive the credit of EPF funds timely.
Centre has reduced both employer and employee contribution in the EPF account as a Covid-19 measure.
20% of temporary staff may not be able to avail full benefit of PF withdrawal: Indian Staffing Federation
The staffing federation has written to labour ministry last week asking them to re-look into the issue.
Despite the tax on the interest, EPF continues to have the highest returns among small saving schemes. So it makes sense to make small periodic withdrawals to ensure that the account does not become inoperative.
The Ministry of Labour & Employment has implemented the decision to cut employees' provident fund (EPF) contributions to 10 per cent from the existing 12 per cent for three months till July. This would increase 4.3 crore organised sector employees' take home pay and reduce the liability of 6.5 lakh employees reeling under liquidity crunch under lockdown to contain COVID-19. The decision is estimated to infuse liquidity of Rs 6,750 crore in next three months.Covid-19 crisis: Govt implements cut in EPF contribution to 10% for May, Jun, July
The move comes days after Finance Minister Nirmala Sitharaman announced the reduction in EPF rates to 10% for three months as part of the government's Rs 20 lakh crore stimulus package.
The total Employees Provident Fund (EPF) balance at any point of time includes the employee's contribution and that of the employer, along with the interest accrued.
Briefing reporters about the decisions taken by the Union Cabinet headed by Prime Minister Narendra Modi, Information and Broadcasting Minister Prakash Javadekar said 81 crore poorest will be provided 5 kg free foodgrains per person for five more months and one kg pulses per month.
"The law states that any amount withdrawn from a recognised provident fund is exempt in the hands of the employee if the employee renders continuous service for 5 years or more."
Mutual fund dividends are not fixed in amount or frequency. It is at the discretion of the fund manager.
According to the standard structure, 12% gets deducted as PF. An equivalent amount is contributed by the employer into the employee’s PF account. For organisations with a larger base of employees, this could result in a greater relief.
Currently, an employee contributes 12% of his salary to the EPF account. The employer matches the contribution to the EPF account.
Did you make any of these 6 money mistakes in coronavirus crisis? A financial advisor could have helped
During the Covid crisis, did you withdraw from your EPF? Or did you avail the loan moratorium? Or did you withdraw from equity when the market crashed? If you have made such mistakes, here's how a financial planner could have helped you.
As per the analysis, a 4% gross increase of basic wages due to reduction in EPF contribution to 10% for both employers and employees for May, June and July 2020 may not make a material difference to an employee.
Government has reduced the statutory EPF contribution of private-sector employers and employees from the current mandated 12% to 10% for the next three months. However, for government PSUs, it will remain 12%, but PSU employees can pay 10%. Finance Minister Nirmala Sitharaman made this announcement in a press conference on Tuesday. This relief is a part of the Rs 20 lakh crore economic stimulus package announced by Prime Minister Narendra Modi Tuesday night. Atmanirbhar Bharat Abhiyan: FM Nirmala Sitharaman on EPF contributions' relief
The reduction in contribution will lead to an increase in your takehome pay which, in turn, will be taxed at your income-tax slab rate. This reduction has to be undertaken by all companies falling within the ambit of EPF.
To help EPF members with the withdrawal process to meet the financial emergency due to coronavirus, on April 26, 2020, the EPFO issued a set of FAQs. These FAQs will answer all the queries of EPF members related to making funds withdrawal from EPF account.
The proposed rate is 15 basis points lower than 8.65% announced for FY 2018-19. The finance ministry will have to vet the interest rate of 8.5% agreed upon by CBT before it is notified by the labour ministry.
Retirement fund body EPFO on Thursday lowered interest rate on provident fund deposits to 8.5 per cent for the current financial year, said Labour Minister Santosh Gangwar on Thursday. The EPFO had provided 8.65 per cent rate of interest on EPF for 2018-19 to its around six crore subscribers. The decision was taken at a meeting of the the Employees' Provident Fund Organisation's (EPFO) apex decision making body -- the Central Board of Trustee.EPFO slashes interest rate on deposits to 8.5% for FY20
Currently, employee contribution to PF is 12 percent, and an equal percentage is contributed by the employer. However, the draft EPF Bill proposes to reduce the EPF rate of contribution to 10 percent, both by the employee and the employer.
The decision is taken in view of lockdown across the country to fight COVID-19. The COVID-19 has been declared pandemic and therefore employees working in establishments and factories across entire India, who are members of the EPF Scheme, 1952 are eligible for the benefits of non-refundable advance.
The government, had, in February this year notified the restoration of full pension after 15 years of retirement for pensioners who have commuted part of their pension at the time of retirement.
The withdrawal can also be done online. For this, one must have an activated Universal Account Number (UAN), the Aadhaar should be verified and linked with the UAN and the bank account with IFSC Code should be seeded with UAN.
The government has amended the EPF withdrawal rules to allow a member to withdraw money from their EPF account in case of financial emergency due to novel coronavirus. Here's how EPF member can withdraw the money.
A senior government official told ET that lower contribution rule under PF will not apply to all.
An advance under the amended paragraph can be sought through the same process by which all other advances are granted. No separate procedure is prescribed. Members can apply online.
Employees' Provident Fund Organisation (EPFO) is undertaking several digital initiatives including online Universal Account Number (UAN) generation facility for subscribers and e-inspection system for employers.
The coronavirus-led stock market crash or the sharp drop in equity market has dented its corpus.
EPFO is of the view that due to lockdown, many employers are facing difficulties to send the one time registration requests to the regional offices in the existing scenario.
Provident Fund cannot be blocked by a family member during the life span of the PF account holder. However, after his/her death, those family members who are legal heirs, can claim right in his/her property.
Claims settlement involves disbursal of total amount of Rs 4,684.52 crore which includes Rs 2,367.65 crore COVID claims under the PMGKY package. The exempted private PF trusts have also risen to the occasion amidst the COVID-19 pandemic.
The move will benefit 6,30,000 pensioners every month, although it will cost the government Rs 1,500 crore at a time when it is facing a resource crunch due to the Covid-19 virus outbreak and the related nationwide lockdown that has hurt the economy.
'Banks won’t be blamed as we are going to take the loss’
The EPFO has been settling EPF withdrawal claims at 8.55 per cent interest rate, approved for 2017-18. Now, the EPFO will settle accounts at a higher rate of 8.65 per cent for 2018-19.
For salaried individuals, monthly contribution towards the Employee’s Provident Fund (EPF) is a mandatory savings mechanism. Not only is the contribution eligible for tax benefits under Section 80C but both the interest earned and money received on super annuation are also tax-free. EPF makes sure that your contributions rise steadily in line with a rise in salary, since the contribution is a fixed proportion of your basic pay. Here is a look at certain scenarios and whether your EPF is taxable in each of these or not. Also read: Your tax-saving guide for FY 2019-20
Under the scheme, notified on March 28, members can avail non- refundable withdrawal to the extent of the basic wages and dearness allowances for three months or up to 75% of the amount standing to the member’s credit in the EPF account, whichever is less, to tide ove the financial crisis emerging out of COVID-19.
How much you withdraw and when you withdraw from the Employee’s Provident Fund determines how much TDS will be levied on the same. Here are five common scenarios and the tax implications on them.
You may make early withdrawals from your EPF under certain scenarios. If at all there is an emergency and you need the funds, here is all you need to know about the specific conditions when you can withdraw from your PF.
The reduction will kick into effect from May 14 and will be valid on payment for contract, professional fees, interest, rent, dividend, commission, brokerage, among others, for the remaining part of the ongoing financial year. “This measure will release liquidity of Rs. 50,000 crore,” Sitharaman said.
In February, the Central Board of Trustees, headed by the labour minister, had decided to raise the interest rate on EPF to 8.65% for 2018-19.
Government had notified the special withdrawal provision from the EPF Scheme on March 28 to tide over the COVID-19 pandemic as part of the Pradhan Mantri Garib Kalyan Yojana (PMGKY) package.
The EPFO has been settling EPF withdrawal claims at 8.55 per cent interest rate, approved for 2017-18. Now, the EPFO will settle accounts on higher rate of 8.65 per cent for 2018-19.
"The employers disbursing the wages for March 2020 not only get relief of extension of due date for payment of EPF dues for March, 2020 but also avoid liability of interest and penalty, if they remit on or before May 15, 2020," EPFO added.
In the new tax regime, the tax benefit available on employee's own contribution to EPF account is impacted.
"...ahead of the festival season, over 6 crore EPFO subscribers would get 8.65 per cent interest for 2018-19," said Labour Minister Santosh Gangwar.
The budget proposal was made to restrict the tax-exempt contribution by employer to EPF, NPS and superannuation fund to Rs 7.5 lakh in an FY. However, this proposal is leading to double taxation of excess contribution in the hands of an employee.
The Employees' Provident Fund (EPF) corpus also has a pension component i.e. Employees' Pension Scheme (EPS). Here is a look at how and when you can withdraw money from your EPS account.
As per EPFO, in the current scenario the businesses and enterprises are not able to function normally and are facing liquidity or cash crunch to pay their statutory dues even though they are retaining the employees on their rolls.
EPF and NPS are critical pillars of your retirement planning. Tune in as ET's Sanket Dhanorkar talks about the changing retirement landscape and find out how you can make the most of these two instruments to ensure that your golden years are secure. Watch now. (Text: ET Bureau)Maximise returns from EPF, NPS for a financially secure retirement
EPFO has launched an online facility where EPF account holders can update the exit date in the records.
In the dynamic retirement landscape, EPF and NPS are critical pillars of your retirement planning.
According to EPF rules, 8.33 percent of the employer's contribution is diverted towards EPS account.
At the time of switching from the previous job to another one, an individual can transfer money from his/her old EPF account to new one online. However, there are certain conditions that an individual must satisfy while transferring money.
His goals include building an emergency corpus, saving for his children’s (including another child in future) education and weddings, and retirement.
As per the circular, EPF members can now correct the date of birth up to plus or minus three years instead of one year earlier. This would make the linking of Universal Account Number (UAN) with Aadhaar easier.
Under the scheme, the central government will grant relief in form of credit of EPF & EPS contributions (24% of wages) for three months in UANs of contributory EPF members, earning monthly wage of less than Rs 15,000.
Speculations are rife that the interest rate on EPF may be lowered to 8.5% for the current fiscal, a tad lower than 8.65% provided for 2018-19. As per sources, the agenda for the CBT meeting has not yet been finalised and it is difficult to predict EPFO's income projections for the current fiscal, which will be the basis for fixing the rate.
EPFO proposed to amend the Act to limit enquiry period to a maximum of two years in order to curtail harassment.
The government has extended the last date for tax saving for FY2019-20 from March 31, 2020 to June 30, 2020.
Earlier in February, the Central Board of Trustees had decided to raise the interest rate on EPF to 8.65 per cent for 2018-19.
Kuldeep Bhardwaj's goals include building an emergency corpus, buying a house, taking a vacation, saving for children’s education and weddings, and retirement.
The employer's contribution over Rs 7.5 lakh in a fiscal to retirement funds is proposed to be made taxable.
A taxpayer may be having liquidity issues and as such, not be in a position to make further investments in tax saving instruments. For such taxpayers, there are certain expenditures, which are also eligible for a deduction in the financial year 2019-20.
The total backlog or outstanding provident fund dues of EPFO during 2018-19 was Rs 791.63 crore, Labour Minister Santosh Gangwar said in a written reply to the Rajya Sabha.
As per EPF scheme rules, once you get married the previous nomination made by you automatically becomes invalid in your PF and EPS account.
To access various services on the EPFO's member sewa portal, your UAN must be activated. Here's how to do it.
The e-nomination facility can be used by those account holders whose Aadhaar is linked to their EPF account and verified on the member sewa portal.
EPFO subscribers won't require to file provident fund claims from next fiscal when they change jobs.
If you have a grievance related to your PF account like withdrawal, transfer and so on, then EPFO has a dedicated website called 'EPF I Grievance Management System' where you can file such complaints. You can also file them if you do not have UAN.
The apex court in its judgement has ruled that special allowance is part of the basic wages for computing the employees provident fund (EPF).
Section 80C is at the core of tax-savings for all categories of individuals. Whether the individual is a government employee, privately employed or for that matter working in an NGO, use the section 80C basket to save on tax.
Financial planners say reducing contribution to the EPF will have far reaching implications for the employee.
The code provides for a uniform definition of "wages" across all legislations covered. This is aligned with the definition provided under the "Code on Wages" and proposed amendments to PF. Here's how specific provisions could benefit employees.
The Central Board of Trustees of the Employees' Provident Fund Organisation (EPFO) has recommended increasing the interest rate on Employees' Provident Fund for 2018-19 to 8.65% as against 8.55% in the preceding year. The move, once approved by the finance ministry will benefit six crore EPFO subscribers.Govt hikes EPF interest rate to 8.65% for FY18-19