What is EPF and EPS?

EPF (Employee Provident Fund)

EPS (Employee Pension Scheme) Applicability. EPF applies to all organisations where the number of employees exceeds 20. Employee Pension Scheme applies to those persons who are members of EPFO (Employee Provident Fund Organisation). Moreover, they contribute to the EPS account.

What is meant by EPF and EPS?

Two popular schemes are the Employees' Provident Fund (EPF) scheme and the Employees' Pension Scheme (EPS). The main aim of both schemes is to help individuals save money for their retirement. Both schemes are designed for salaried individuals and provide guaranteed returns.

Is EPF better than EPS?

While the EPF scheme would give you a lump sum retirement benefit, the EPS scheme would give you lifelong incomes. Both these schemes are, therefore, beneficial for the retirement planning of employees and help them create savings for their retirement.

What is EPF wages and EPS wages?

Employee's Provident Fund (EPF) and Employee Pension Scheme (EPS) are framed under the Employee's Provident Fund & Miscellaneous Provisions Act, 1952. The schemes are administered by the central board of trustees that consist of representatives of government (both central and state), employers and employees.

How much pension will I get EPS?

A. The pension contribution in the EPF passbook is the amount deposited by the employer every month in the EPS account of the employee. It comes to be around ₹ 1250 every month.

PF में EPF और EPS क्या होता है ? What is EPF

Can I withdraw my EPF and EPS amount?

EPS amount can only be withdrawn if the individual quits the company before joining the new company. The individual can withdraw the savings of EPS on the EPFO portal by claiming Form 10C. The employee should have an active UAN and link it to the KYC details to withdraw the savings from the employee pension scheme.

Who is eligible for EPF pension?

Pension at 58 years

The member is eligible for the benefits of pension after his/her retirement, that is, after 58 years of age. However, for this, they should have compulsorily made an active pension contribution in EPF for 10 years, at least, before their retirement to avail the pension benefits.

Is EPS compulsory?

Employee Pension Scheme applies to those persons who are members of EPFO (Employee Provident Fund Organisation). Moreover, they contribute to the EPS account. For salaried employees earning up to ₹15,000, it is compulsory. Moreover, employees with a salary of more than ₹15,000 can contribute voluntarily.

How do I check my EPS balance?

Process to check EPS balance

You must visit the official website of EPFO (https://www.epfindia.gov.in/site_en/index.php). Click on 'For Employees' under the 'Our Services' menu. Click on 'Member Passbook' on the next page.

Is PF and EPF same?

PF is the popular name for EPF or Employees' Provident Fund. It is a government-established savings scheme for employees of the organised sector. The EPF interest rate is declared every year by the EPFO (Employees Provident Fund Organisation) which is a statutory body under the Employees' Provident Fund Act, 1956.

Is EPF a pension?

Although the EPF dominates the pension landscape, special pension schemes provide retirement benefits for civil servants and armed forces. The Pension Trust Fund and the Armed Forces Fund are the major pension funds providing retirement provision for public sector employees.

How can I withdraw my EPF pension if I leave my job?

How does EPF work?

If you are an employee, you pay a certain part of your salary towards the EPF scheme. This amount is often matched with an equal contribution from your employer. The combined amount is then deposited with the Employee Provident Fund Organisation (EPFO).

What is EPF in PF?

Employees' Provident Fund Organisation.

How much monthly pension will I get from EPF?

The pension amount that you get from EPF after retirement depends on your pensionable salary and pensionable service. Multiply your annual pensionable salary with the number of years of your pensionable service. Divide the sum by 70, and you will get your EPF pension.

What is PF no in salary slip?

A provident fund (PF) number is assigned to any employee of a company. The PF number is an alphanumeric code that represents the state, regional office, establishment, and PF member code for non-exempt organizations controlled by EPFO. The PF number is only numeric and is managed by a trust.

How many years of service is required for full pension?

Calculations use the interest rates assumed by each plan. In half of traditional state and local government pension plans, employees must serve at least 20 years to receive a pension worth more than their own contributions. More than a fifth of traditional plans require more than 25 years of service.

What happens to EPS pension after death?

If the member of Employees' Provident Fund Organisation dies, then his or her spouse will be eligible for a widow pension. The pension will be paid to financially support the widow until his/her death or remarriage. If there is more than one widow, then the amount will be payable to the eldest widow.

What is the maximum age for EPF contribution?

KUALA LUMPUR, 20 April 2021: The Employees Provident Fund (EPF) wishes to clarify that an old statement regarding the maximum age of 75 years for EPF dividend payment, which is currently circulating via WhatsApp and other online platforms, is outdated and no longer applicable.

Can I withdraw my pension?

It is usually possible to take a quarter (25%) of your pension pot as tax-free cash. You then have the option of setting up a guaranteed income for life (an annuity) with the rest, or you can withdraw your money as one or more lump sums, or take a flexible or regular income.

Is EPS withdrawal taxable?

If the amount is less than Rs 50,000, no TDS is deducted, however, if the individual falls under the tax bracket, he or she has to offer such EPF withdrawal in his return of income. If the amount is more than Rs 50,000, then 10 percent TDS is deducted if PAN is not furnished.

Can I withdraw my PF after 10 years of leaving company?

PF and EPS amount cannot be withdrawn after the completion of 10 years of your service because if you have completed 10 years of your service, your employer will necessarily have to provide you with the pension benefits.

Who is not eligible for EPS scheme?

For the purpose of EPS scheme, salary is considered as basic wage plus dearness allowance (DA). So, according to the amended rules, if an individual's basic wage plus DA exceeds Rs 15,000 a month, then he will not be eligible to join the EPS scheme.

What is the benefit of EPF?

EPFO allows for Partial Fund Withdrawals in certain cases such as medical emergency, home loan repayment, construction or purchase of new house, renovation of house, wedding of children or self. An EPF member can also avail loan in the wake of a financial emergency with a 1 percent rate of interest.

What is EPF interest rate?

The government reviews the interest rate on EPF accounts regularly. For the FY 2019-20, the interest rate notified is 8.5%.