Benefits to Members under EPF Schemes

1. Provident Fund benefits 1. Employer also contributes to Members PF @ 12% ( 10% in case of sick industrial co., any establishment having accumulated loss equal to its entire paid up capital and any establishment in Jute Industry, Beedi Industry, Brick Industry, Coir Industry and Gaur Gum Factories. ) 2. EPFO guarantees the Employer contribution and credits interest at such rates as determined by the Central Government. 3. Member can withdraw from this accumulations to cater to financial exigencies in life - No need to refund unless misused 4. On resignation, the member can settle the account. i.e., the member gets his PF contribution, Employer Contribution and Interest. 2. Pension Benefits 1. Pension to Member 2. Pension to Family (on death of member) 3. Scheme Certificate

This Certificate shows the service & family details of a member This is issued if the member has not attained the age of 58 while leaving an establishment and he applies for this certificate Member can surrender this certificate while joining another establishment and the service stated in the certificate is added with the service he is gaining from the new establishment. After attaining the age of 50 or above, the member can apply for Pension by surrendering this scheme certificate (if total service is atleast 10 years) This is a better choice than Withdrawal Benefit, as a member dies holding a valid scheme certificate, his family will get pension (Death when NOT in service)

3. Withdrawal Benefit

If not eligible for pension, member may withdraw the amount accumulated in his pension account The calculation of this amount is based only on (i) Last average salary and (ii) Service (Not based on actual amount available in Pension Fund Account)

5. No amount is taken from Member to give Pension to the Member. Employer and Govt. contributes to Pension fund @8.33% and @1.16% respectively 6. EPFO guarantees pension to members, even if the Employer has not contributed to Pension Fund. 4. Death Benefits 1. Provident Fund Amount to Family (or to Nominee) 2. Pension to Family (or to Parent / Nominee) 3. Capital Return of Pension 4. Insurance (EDLI) amount to Family (or to Nominee)

No amount is taken from Member for this facility. Employer contributes for this.

5. Nominee is basically determined as per the information submitted by the member at this office through FORM-2 -- grant of exemption from the operation of the scheme/s framed under the Act to an establishment , to a class of employees and to an individual employee , on certain conditions. -- Penalties to employers/trustees of exempted Provident Fund who contravene the provision of the Act and the Scheme. -- appointment of inspector to secure compliance under the Act and the Schemes framed there under. -- mode of recovery of moneys due from employers.

Reinvented EPF Benefits to Employers

Ability to electronically file the monthly return with particulars of employee-wise contribution. The number of returns to be filed in a year will be reduced to 12 from the present 48.

The process of receipt of contributions and confirmation of contributions by employers/banks will be integrated and computerised in order to eliminate missing credits and delays and consequent inconvenience and increase in cost for the employer. Registration will be streamlined and any employer who fulfilling the eligibility criteria under the law will be able to register with EPF and obtain a nationally unique business number in order to comply with the law without reference to EPF. EPF will give every employer a unique business number which will be integrated with the Permanent Account Number issued by the Income Tax Department. This will be a significant step towards a regime where businesses and trade in the country use a common business number for economic transactions as is the norm in developed economies. Voluntary compliance will be the norm and enforcement action will become the exception. EPF will consistently and consciously move to a regime that encourages and facilitates trust and voluntary compliance and that seeks to put in place systems and processes that continually reduce the representation and compliance cost for law-abiding employers. EPF will identify and give recognition to model employers and put in place systems that give fast track service within the Organisation to such recognized model employers and their employees. EPF has already rolled back the "Inspector Raj' and will further bring about systemic changes that will put in place an IT assisted information driven environment that compels pro-compliance choices. Compliance actions will be focused on delinquency, under-reporting or non-reporting of employment strength and contributions and will seek to encourage migration from delinquent categories to the compliance mainstream. EPF will put in place systemic changes that eventually remove one to one relationship in dealings with EPF with the creation and strengthening of IT assisted institutional systems. EPF will support the competitive advantage of Indian businesses by reducing compliance costs.