EPF, EPS, EDLI & EPFO
Labour Laws · EPF, EPS, EDLI और EPFO · 18 facts
EPFO (Employees' Provident Fund Organisation): Third largest social security organization in the world; HQ Bhavishya Nidhi Bhavan, Gurgaon, Haryana.
EPF (Employees' Provident Fund) Act 1952: Applies to establishments with 20+ employees; both employee and employer contribute 12% of basic salary + DA.
EPF contribution breakdown: Employee 12% to EPF; Employer 12% split as — 8.33% to EPS (Pension), 3.67% to EPF, 0.5% to EDLI (insurance).
EPF is tax-exempt: Contributions, interest, and withdrawal after 5 years are all tax-free; one of the best tax-saving instruments for salaried employees.
EPS (Employees' Pension Scheme): Employer contributes 8.33% of salary (up to Rs 15,000) to pension fund; pension after 10 years of service; minimum age 58 years.
EDLI (Employees' Deposit Linked Insurance): Life insurance scheme; employer pays 0.5% of salary; maximum insurance benefit Rs 7 lakh upon employee's death in service.
UAN (Universal Account Number): 12-digit unique number for EPF members; portable across jobs; member can access EPF account, transfer, and withdraw online.
EPF interest rate: Declared annually by EPFO Central Board of Trustees; ~8.15% for FY2022-23; credited to members' accounts.
EPFO members: 280 million+ active members (subscribers); covers organized sector workers; India's largest social security net.
EPF automatic transfer: UAN-linked accounts transfer automatically when changing jobs; employee doesn't need to physically transfer old EPF account.
EPF withdrawal rules: Full withdrawal only at retirement (58 years) or unemployment for 2+ months; partial withdrawal allowed for medical, housing, education, marriage.
EPFO's investment: EPF corpus invested in government securities, bonds, ETFs (Exchange Traded Funds); since 2015, EPFO invests in equity ETFs (SBI-NIFTY ETF).
Central Board of Trustees (CBT): EPFO's apex decision-making body; tripartite (government, employers, employees); Labour Minister is Chairman.
EPF applies to: Factories, mines, plantations, establishments with 20+ workers; threshold can be reduced by notification; voluntary coverage for smaller units.
EPF vs NPS: EPF is mandatory for organized sector; NPS (National Pension System) is voluntary/government employees; both are retirement savings; NPS market-linked.
COVID-19 withdrawal: EPFO allowed non-refundable withdrawal of 3 months' basic wages or 75% of balance during COVID-19 pandemic (March 2020 ordinance).
EPS Higher Pension Case (Supreme Court 2022): SC allowed employees to opt for higher pension based on actual salary (not capped Rs 15,000); deadline extended multiple times.
EPFO digital services: e-Nomination, online claims (Form 31, 19, 10C), UAN activation, passbook access — reducing dependency on employers for EPF.