PF

PF - Process, Procedure, Document Required, Fees, Eligibility, Duration

EPF is a program under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. Under this scheme, an employee has to contribute a certain amount of money and the equal amount of money must also be paid by the employer. At the time of retirement, the employee receives a lump sum amount of money which includes self and contribution of the employer with interest on both. Presently, the employee and employer need to contribute 12 percent of the basic salary and dearness allowance of the employee towards EPF. At present, the rate of interest on EPF deposits is 8.50 percent per annum. 

Benefits of Employees’ Provident Fund scheme

There are different benefits of registering under the EPF scheme which is as follows:

• A PF account holder will receive free insurance up to Rs 7 lakhs in case of death during the service period under the Employees’ Deposit Linked Insurance Scheme.
• An EPF subscriber can avail of the benefits of a lifelong pension scheme under Pension Scheme 1995.
• The EPF scheme also provides tax exemption to a PF Account holder under Section 80C of the Income Tax Act.
• During an emergency, a PF holder can also apply for a loan.
• A PF account holder is entitled to partial fund withdrawals in certain cases like home loan repayment, medical emergency, renovation of the house, construction or purchase of a new house, wedding of children or self, etc.
• A PF holder with a minimum of 15 years of regular monthly PF contribution is eligible for pension after 58 years of age.

PF Important Due Dates