Your Money, Secured: A Look at the Employees' Provident Fund Organisation (EPFO)
The Employees’ Provident Fund Organisation (EPFO) is a pillar of social security in India. Established in 1952 by an Act of Parliament, the EPFO plays a vital role in safeguarding the financial future of millions of Indian workers
Here's a breakdown of what the EPFO does:
- Manages social security schemes: The EPFO administers two key schemes:
- Employees’ Provident Fund (EPF): This is a retirement savings scheme where both employer and employee contribute a fixed percentage of the employee’s salary. The accumulated amount is available to the employee upon retirement or other specified events.
- Employees’ Pension Scheme (EPS): This scheme provides a monthly pension to retired employees after they reach a certain age.
- Enforcement and service provider: The EPFO acts as both an enforcement agency, ensuring adherence to the Employee Provident Funds and Miscellaneous Provisions Act, 1952, and a service provider, offering various services to its members.
Benefits of being an EPFO member:
- Benefits of being Secured savings: Regular contributions to the EPF scheme accumulate over time, providing a financial cushion at retirement.
- Pension after retirement: The EPS scheme offers a monthly pension to provide financial security in old age.
- Financial assistance: EPF members can withdraw funds for specific needs like buying a house, medical emergencies, or unemployment.
- Life insurance cover: The Employees’ Deposit Linked Insurance (EDLI) scheme, administered by the EPFO, provides life insurance cover to members in case of their unfortunate demise while in service
Going Digital: The EPFO has embraced technology to make it easier for members to manage their accounts. They offer a user-friendly online portal (https://www.epfindia.gov.in/) for checking account balances, submitting claims, and transferring funds.
New Update for the Fiscal Year 2023-24: The EPFO has hiked the interest rate up to 8.25% pa for the fiscal year 2023-24 for all the pf account holders.
Remember: If you’re a salaried employee in India, there’s a good chance you’re an EPFO member. Understanding the benefits and how to access them can ensure you get the most out of this social security program