EPFO - Employees' Provident Fund Organisation
The Employees' Provident Fund Organisation (EPFO) plays a vital role in ensuring the financial security of employees in India's organized sector. As one of the main social security organizations under the Ministry of Labour and Employment, the EPFO is responsible for the regulation and management of provident funds in the country. Together with the Employees' State Insurance, it oversees the social security of workers and administers various schemes, including the mandatory provident fund, EPFO Login, pension scheme, and disability/death insurance scheme.
|Working Hours||Monday to Saturday (09:15 AM - 05:45 PM)|
|Address||Bhavisya Nidhi Bhawan, 14, Bhikaji Cama Place, New Delhi 110066|
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Structure and Organization
The EPFO is governed by the Central Board of Trustees (CBT), a statutory body established by the Employees' Provident Fund and Miscellaneous Provisions (EPF&MP) Act, 1952. The CBT consists of representatives from the Central and State governments, employers, and employees. It serves as the top decision-making body of the EPFO. The EPFO is administratively divided into zones, each headed by an Additional Central Provident Fund Commissioner. Regional Offices, headed by Regional Provident Fund Commissioners, are further divided into Sub-Regions, which are responsible for enforcement and grievance handling. The EPFO has a total manpower of over 20,000 employees, including Commissioners and other officers.
Universal Account Number (UAN)
The Universal Account Number (UAN) is a unique 12-digit number assigned to employees contributing to the EPF. It acts as an umbrella for multiple Member Identification Numbers (Member IDs) allotted to an individual by different establishments. The UAN remains the same throughout an employee's lifetime and facilitates easy transfer and withdrawal of PF claims. With the UAN, employees can access services such as checking PF balance, downloading passbooks, and updating KYC details online. The UAN has brought convenience and portability to EPF members, streamlining the management of their accounts.
Employees' Pension Scheme (EPS)
The Employees' Pension Scheme (EPS) is an integral part of the EPF&MP Act, 1952. It provides social security and pension benefits to employees in the organized sector. Under the EPS, eligible employees can receive a pension after reaching the age of 58. The scheme has undergone several amendments, including an increase in the wage ceiling and the provision of a minimum pension of ₹1000 per month. EPS-95, the current version of the scheme, ensures that employees have a secure retirement and financial stability in their later years.
International Workers and Social Security Agreements
The EPFO extends its coverage to international workers under social security agreements signed between India and other countries. These agreements provide a framework for cooperation in the field of social security and ensure that international workers are entitled to benefits similar to those available to domestic workers. Currently, India has signed social security agreements with countries such as Belgium, Germany, Switzerland, France, and others. These agreements enhance the social security net for international workers and promote cooperation in this area.
EPF Calculation and Contributions
The calculation of Employee Provident Fund (EPF) contributions follows specific principles laid down by the EPFO. The EPF contribution is 12% of the basic wage and allowances received by employees. The cap on the calculation of the basic wage is ₹15,000. Employer contributions include 8.33% towards the Employees' Pension Scheme (EPS) and 3.67% towards the EPF. Employers also contribute 0.50% as administrative charges on EPF and 0.50% as EDLI (Employer's Deposit Linked Insurance) charges, resulting in a total contribution of 13% of the basic wage. These contributions ensure that employees have a substantial corpus for their retirement and financial well-being.
Recent Developments and Landmark Judgements
Recently, the EPFO has made significant developments to enhance its services and ensure better social security for employees. It introduced the Universal Account Number (UAN) to facilitate portability and efficient management of PF accounts. Additionally, there have been landmark judgements related to EPF regulations, such as the clarification on the calculation of basic wages and the uploading of all orders passed by EPFO officials for transparency and accessibility.
The Employees Provident Fund Organisation (EPFO) is a crucial institution in India's social security system. Through its various schemes and initiatives, the EPFO ensures the financial security and well-being of employees in the organized sector. With its robust structure, including the Central Board of Trustees and regional offices, along with the implementation of the Universal Account Number and the Employees' Pension Scheme, the EPFO continues to play a vital role in providing social security and retirement benefits to millions of workers in India.