The retirement fund body, the Employees’ Provident Fund Organisation (EPFO) is offering EPF and voluntary provident fund (VPF) at 8.25% interest this quarter for salaried citizens.
Notably, subscribers are eligible to open an EPF account if their basic pay and dearness allowance are up to ₹15,000 and can add VPF option if basic pay and DA exceed ₹15,000 per month. The scheme functions through joint contributions from both the employer and employee, wherein you receive the lump sum corpus at retirement.
In terms of tax benefits, annual employee contributions up to ₹1.5 lakh are exempt under Section 80C of the old tax regime. Employers' up to 12% contribution (below ₹7.5 lakh) is exempt under the old and new tax regimes. There is no similar benefit at present under the new tax regime. Further, interest on employees' accumulated contribution is tax-free up to ₹2.5 lakh, while interest on the employer's contribution is tax-free.
EPFO nomination: Top FAQs answered
How to file Nomination form for EPF? Form No-2 is prescribed under Employees Provident Fund, employees’ Pension Scheme and Employee’s Deposit Link Insurance (EDLI) Scheme for submitting family and nomination details.
Can I file e-nomination? Only Aadhaar verified UAN holders can file e-nomination as this facility is available only from the UAN based login of the member. You will have to complete the process with e-sign by entering your Aadhaar number and clicking on the verify button. You will receive an OTP on your Aadhaar-linked mobile number which can be used to save and submit the nomination process.
In the absence of nomination, how is the provident fund amount of a deceased member paid? It is payable to the family members in equal shares, under Para 70 (ii) of EPF Scheme, 1952. If there is no eligible family member, it is payable to the person(s) who are legally entitled to it.
What to do if I am unable to add nominee details? Nominee details can be added by any member whose profile section is complete and UAN is verified against the Aadhaar. Nominee details can be added if Aadhaar of the family members are available and the photo is also ready for upload.
How to add nominee details in the unfortunate case of death of the member? In case the member has died, no fresh nominee (for PF including EDLI) can be added. Only the member had the right to nomination. Nomination cannot be changed after death. Only eligible family details can be added for pension by the concerned PF Office.
Is employer’s approval required by me for filling e-nomination or for any change in the nominee details? Member has to use Aadhaar based e-Sign to file the e-nomination, employer's approval is not needed.
In the absence of family members (spouse and children), to whom is the pension is payable? It is payable to the dependent parents.
How do I update my nominee's date of birth? Update Form-2 (Nomination) online through Member Portal. The date of birth is based on Aadhar in e-nomination. So, change will be required only when you have got Aadhaar corrected. The earlier e-signed e-nomination can be changed by filing a fresh nomination linking the updated Aadhar and e-signing the nomination again.
In the unfortunate case of death of member, if there is a name mismatch, how can I, being the nominee, apply for settlement, online? Beneficiary can apply online only when the member had filed e-nomination. So, file physical claim through the authentication of the employer with necessary documents and proof.
What is the need for nomination for pension? On the death of a Pension member (before receiving the pension), if there is no eligible family member, pension is payable to the nominee. Further, in the absence of valid nomination and no family to whom the Pension amount is payable, it will be given to the dependent parents (father followed by mother).
Can an unmarried member nominate their sibling? The member has to execute nomination separately for Provident Fund as well as Pension. As per Para 2(g) of the Employees' Provident Fund Scheme, 1952, the "family" means (i) spouse, children, dependent parents and spouse's parents. As per Para 61(4) of the EPF Scheme,1952, if at the time of making a nomination the member has no family, the nomination can be in favour of any person or persons but if the member subsequently acquires a family, such nomination shall forthwith be deemed to be invalid and the member shall make a fresh nomination in favour of one or more persons belonging to his family. As per Para 16(5)(a) of the EPS,1995, a member who is not married or does not have any living spouse and/or an eligible child can nominate a person to receive benefits, which means an unmarried member can nominate their sibling for PF and pension.
EPFO 3.0: Latest updates and key highlights
The body is undertaking a major digital upgrade ‘EPFO 3.0’ to enable paperless withdrawal or transfer of provident fund to subscribers. It seeks to eliminate processing delays by allowing subscribers to access their provident fund via direct transfer of funds to their bank accounts through UPI and UPI-enabled ATMs.
- According to Union Labour Minister Mansukh Mandaviya, testing of the facility has been completed, and the service is expected to be rolled out soon, but did not provide a date or timeline of launch.
- Under EPFO 3.0, subscribers may be able to withdraw 50% to 75% of their EPF balance via UPI or UPI-enabled ATMs, depending on applicable conditions.
- Subscribers will be able to see the eligible EPF balance available to transfer into their seeded bank accounts. They will be permitted to use the linked UPI pin to complete the transaction and ensure the secure transfer of money into their bank accounts.
- Once the money is transferred to your bank account, the subscriber can use it as they wish, such as making payments electronically or withdrawing cash at bank ATMs with debit cards.
- According to the rules, you are typically allowed to withdraw between 50% or 75% of your total EPF corpus. However, at least 25% of your total provident fund contribution must stay untouched as a mandatory buffer or mandatory retention.
- Further, auto-settlement limit has been increased from ₹1 lakh to ₹5 lakh to allow many EPFO members to access their EPF funds within three days to allow subscribers quicker access to funds during emergencies.
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