There will be plenty of Employees out there like me who either are not interested to know about EPF or are not aware what is EPF and why it has been deducted from our salary. What are the advantages to contributing towards Employee Provident Fund?
What is EPF?
Employee Provident Fund (EPF) is implemented by the Employees Provident Fund Organization (EPFO) of India. Typically 12% of the Basic, DA, and cash value of food allowances has to be contributed to the EPF account.
How EPF is Calculated – with Example?
Employees drawing basic salary upto Rs 6500/- have to compulsory contribute to the Provident fund and employees drawing above Rs 6501/- have an option to become member of the Provident Fund. It is beneficial for employees who draw salary above Rs 6501/- to become member of Provident Fund as it is deducted from the salary before it is deposited on bank or given hence compulsorily saving happens. Employee’s contribution is matched by Employer’s contribution(till 12%) so extra money and it is helpful for tax purpose too. The employer contribution is exempt from tax and employee’s contribution is taxable but eligible for deduction under section 80C of Income tax Act.
How to Know EPF Balance online?
- Go to http://members.epfoservices.in/index.php and Register an new account by clicking on “ Click here to register “
- Carefully enter * Compulsory Fields like Mobile Number, Date of birth, Select any one document and enter Number as on document; choose this document number wisely and the choose the one which you can remember easily as it will be required each time you logged in to your account. You should enter your name as on document (First Name + Last Name) and finally your working e-mail address.
- Enter Captcha as shown in the image (Please type the characters shown in the text box (case-sensitive)
- Click on GET PIN button and you will receive one SMS on your mobile containing Authorization PIN, which you supposed to enter
before submitting the details.
- Read Disclaimer and click on I Agree check box and then click on Submit button.
- Now after successfully registration you need to log in using the details you have provided earlier.
- From Menu – Click on DOWNLOAD E PASSBOOK Link (http://members.epfoservices.in/choose_ofc_details_mpb.php)
Note: At any point in time if you get an error like “You have entered invalid Member ID or Name”; it’s because you have entered incorrect details either in Account Number or Name or you chose wrong Office Name. Correct the details and try again.
A must read article for everyone who are curious to know insights about EPF – – http://www.bemoneyaware.com/blog/epf/. A special thanks to Kirti for sharing detailed analysis on EPF.
Hope this article will help you to understand more about EPF and how you can know you EPF balance online easily. Don’t forget to share you feedback!