The Employee Provident Fund has impacted positively to the life of Indian citizens ever since it was initiated by the Government of India. This scheme is available to every employed citizen whether in the public or private sector so long as you are earning a monthly salary that is above Rs 6500.
If any employer does not have this scheme then you have a right to request it from the EPF. In this scenario, the employer will have to pay the monthly installments on your behalf. This can be done directly or through a contractor chosen by the employer.
Who will get EPF Account?
Any citizen of India who has just been employed and is earning a salary above Rs 6500 is eligible to become a member of EPFO. You can also decide to join the EPFO if you are employed in an organization that makes use of this scheme. A person may be eligible to become a member of the EPF if:
- You are employed in a company which is enrolled in the EPFO Scheme.
- You are employed by an employer who has 20 or more employees.
- You are earning a monthly salary that is more than Rs 6500. In this situation, you will have to seek consent from your employer.
Once you become a new member of the EPFO, you will have to:
- Submit your previous employment details to your employer by filling form 11. You should not fill this form if you have never been employed.
- Submit a dully filled form 2 to your employer. This form contains your family particulars together with the nominations.
- Make monthly payments to the EPF scheme. This is usually 12% of your monthly salary but you can still decide to increase the savings.
Current members of the EPF can enjoy all the services offered by this scheme as long as they make the required monthly payments. However, they must notify the EPF officers in case there is a change in family status. This may include:
- Marriage of a family member
- Adopting a child into the family.
- Getting a new member of the family
- Death of a family member.
- Change of nominee. For this to be accepted you will have to sign form 2 and submit it through your employer.
Any existing member of the EPFO who is holding a Scheme Certificate will have to avail it to the EPF officers through your employer.
By becoming a member of EPFO, you are set to enjoy numerous benefits offered by the organizations. Some of these benefits include:
- Financial security
- Interest on your savings
- Insurance benefits that may cover death, medical bills, marriage and even education bills.
- Pension benefits
With all these benefits, you will not regret becoming a member of the EPFO. In addition to this, you will have secured your future once you retire or are rendered jobless since you can make a full withdrawal once your account has matured.