Employee Provident Fund (EPF) - How it works | Interest Rate | Withdrawal Rules | Budget | ETMONEY
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- Опубліковано 2 жов 2024
- EPF or the Employee Provident Fund is perhaps the most multi-dexterous of all available financial products as it serves four functions - 1. Grows wealth, 2. Offers pension, 3. Has in-built insurance and 4. Saves taxes. And all this in addition to giving excellent interest rates of 8.50% at minimal risk.
In this video, ETMONEY’s Shankar Nath does a detailed round-up on this quintessential financial product on which many people know very little about.
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1. A big shout out to Dev from our team who created the superb graphics which has elevated the learning experience.
2. EPF is a vast subject and since most of us have it, it attracts many queries. Please type away your questions on EPF in the comments box below - we'll try to answer most of them. Also browse questions from other viewers as most people have similar queries .. and if you have answers to some of the questions then do share it with all others. Thanks!
Can you please cover more on EDLI.
1. How much is the cover?
2. All of 24% went into EPF and EPS, in that case are we getting insured without premium?
3. What does it insure? Eg: death/medical/accident?
I've read in the comments that, EPS doesn't get any interest. If EPS is not beating today's inflation rate, it would never be able to beat post-retirement inflation. So, why should I contribute to EPS, what am I missing here?
Do we have the provision to tune the composition? For eg, Let's say I'm already investing in a pension scheme, can I shift my EPS contribution to EPF?
@@GK-rl5du Yes EDLI need to be explained
If I merge my previous company PF closing amount. Does it included in current PF calculation? (Old closing amount) + Round(1:11)*8.5/1200 = ?? . Please clarify.
Can excess VPF contribution be claimed with its intrest accured( principle 2.5 lack/year upto 100% Basic would attract tax as per income slab on Interest earned/Year just like FD ....but now the money is compounding at effective PPF returns ( Post Taxation) in a safe government backed organization with much better Liquidity than PPF
Please cover EPS... As EPS is highly confused....
Sure, will do in another video.
@@ETMONEY Yes we need a video on EPS please.... It's highly confusing
Simply superb.. every presentation you are comming with is explaining in very systematic way and understandable
Thank you so much 🙂
ETMONEY’s ShankarNathGuruji, We Are Grateful For Your Guidance
Thank you Pavan Medam
So happy to see a video in English😍.
Thank you soo much
Subscribing from now on for more English videos🥰
Another informative video. The only concern I have with EPS is it's still relatively difficult to merge old PF accounts with the current one even if applied online. They reject it with random reasons, hope the government looks into it.
Mr. Mohit Jha, will be able to help you with any assistance that you may require with respect to merging of your PF accounts.
@@srikanthvislawath1937 Thanks Srikanth, I am already in touch with the concerned organization to get it sorted.
Thank you Mohit Jha. We haven't tried the online approach ourselves but I understand things are much better now.
Yess even offline process is complicated
It's been 5 months and my earlier PF which was maintained with a trust is still not transferred to new organisation which maintain it with EPFO. This even after I had UAN and Aadhar linked with OTP coming on my mobile. The process is bad even after going online. Given an option now, I wouldn't be investing in EPFO, I would earn higher interest elsewhere and get more take home.
Can you please cover more on EDLI.
1. How much is the cover?
2. All of 24% went into EPF and EPS, in that case are we getting insured without premium?
3. What does it insure? Eg: death/medical/accident?
I've read in the comments that, EPS doesn't get any interest. If EPS is not beating today's inflation rate, it would never be able to beat post-retirement inflation. So, why should I contribute to EPS, what am I missing here?
Do we have the provision to tune the composition? For eg, Let's say I'm already investing in a pension scheme, can I shift my EPS contribution to EPF?
Awesome Explanation. One point to add, on who can check EPF details on EPFO website and who cannot and what online servivlces does EPFO provide to the subscribers .
Pls use umang app
@@gvamsi55 I know this. I wanted this to be communicated in the video. Also, not everyone can find the EPF data on EPFO website even if they contribute as the contribution happens through Employer Trusts.
@@gvamsi55 Thanks for contributing
Shankar ji , thanks a lot and request you to post a video on EPS as well which will certainly help us gain knowledge as to how it works and the benefits of it such as interest & insurance etc. Thanks a lot once again
Thank you Anilkumar Chanda ji. Yes, we'll do a followup session answering the EPF questions asked in this video comments plus EPS
Excellent demonstration. I wanted to know more about the Passbook where various components are displayed eg employee share , employer’s share etc . Also which amount needs to be considered while withdrawing amount
Questions from my side:
1. How do I check the current value / corpus of my EPF account?
2. If I change my employer (get a new job), the PF account will be same or a new account will be made? If yes, Can I tell my new employer to use my previous EPF account?
Can you please make a detailed video on delay in epf interest credit. This delay is happening every year. There are few points which are confusing.
1) What is the impact on compounding due to delay in interest credit.
2) Why EPFO interest credit process is delayed.
3) Can subscribers/contributors of epf can do something regarding this (is there any law to govern it)
Excellent narration and very clear. Thanks Sir
Thank you for your kind words
Very well explained or presented
Thank you
One of the best videos on the net for someone to understand every aspect of Provident Fund. Kudos to you Sir and the ET Money team.
Thank you!
Interest is not contributed to EPS should have been mentioned too. Great content ntl
Thank you for this very informative article. Very beautiful conceptualized.
Please explain how does the corpus gets returned after retirement or after attaining the age of 58 yrs
Our pleasure! Thanks for your kind words
One question. How will be the pension paid ? Will it be monthly ? Also, why EPS accumulation not transferred when I transfer my epf from one PF account to another which is the case on job change ? Will I lose the amount?
This is an awesome video thank you
You are so welcome! Thanks for the appreciation
Great Sir, Thanks!
Most welcome!
Always a quality content.. great efforts by ET Money team
Much appreciated! Thank you
What is the background of the General Provident fund? its antecedents and what will be it's consequences ?
Thanks for the information can you please make a vedio on vpf
Most welcome
Excellent and very detailed lecture....
Please cover more on EPS in next video....
Did u covered eps? video link pls?
Thank you...very informative 🥰
Most welcome
Very well explained 👍
Thank you
Requesting pls clarify why EPF interest rates are declared at the end of the Financial year. It is the only product where a investor doesn't know the rate of interest beforehand !
There is a beautiful line in a Hindu Businessline article which we are just copy-pasting here : _The annual 'interest' declared by the scheme is in reality a dividend resulting from the surplus left with the fund, after deducting its running expenses from its investment income and fees collected from member institutions_
Sir please clear my doubt. The employer deducts the PF amount from his employee's salary and the employer transfers the PF amount to his trust account. The employee, the employer has to withdraw the PF amount from the trust account, but the employer Not allowed. How to get employee PF in this scenario
My new employer doesn't contribute anything to EPS and puts the entire 12% in EPF only. However, my previous employer uses to contribute a small sum to Pensions - is that normal? I saw in my EPF passbook on the UAN portal and the amount under the pensions header is 0 while Employer Contri for EPF is complete 12%
No. It's uncommon for that to happen. Do seek an explanation on this from your company HR on this.
I am also seeing the same.. My prev organization was following this 8.33% or Rs1250 (whichever is lower) into EPS rule but current org is contributing all 12% into EPF only.
Is there any rule or form which I opted by mistake?
Hi, great demonstration. Requesting details of EPS.
Thank you. Yes, we'll cover EPS in a separate video
yes, I too want same please
Yes..!!
Very informative video
Must watch
Very well explained
Pls cover previous pention settlement video
-It was beautifully explained. required more details on interest calculations of EPF... How check the interest has been credited or not?? I have not received for the past FY 19-20.. can anyone help me out
Very informative video.
Thank you very much
Very nice and informative video, Especially music and calm background color.
I have doubt, In my PF, Pension contribution showing as zero from April 2021, Is there any change ?
My current employer that I joined 2 years back opened a new EPF account under the same UAN. I have not received any interest in my old account for FY 20-21 so far. Questions: 1) will I get interest on old account? 2) What happens to the interest amount if I transfer base amount in the middle of the year?
Wondering if there is a retirement plan where in funds contributed by both employee and employer are invested in instruments that are determined by the employer or employee. According to the video it is EPFO that determines how money collected from its members is invested.
Hello sir,
I was working with a bank and my PF was being deducted. I worked in that bank for 4.5 years. Now I switched bank and in this bank i have nps. Total corpus accumulated in my EPFO is more than 5 lakhs.
I come under 30% tax bracket. Kindly advice the how to save tax on my epfo withdrawal
I want to stop my contribution in EPS , which is a part of EPF . it started because in my FIRST job my basic salary was less than 15k . EPS is not good investment as i won't earn any interest on it over years and i''l only receive very less pesnion on it . Not earning any interest on EPS for 30-35 yrs is a financial sin according to me .
Is there any way can i opt out of EPS ?
Even if i manage to earn 8.1% CAGR on EPS amount of 1250/month by contributing in EPF instead , it can be great . Otherwise i want this money inhand so that i can invest in equity and earn 15% CAGR .
It can create a difference of 35 lac-1.5 crores .
Now i am losing on this money for next 35 yrs if i remain in the job .
I had restructured my salary components by opting for 1800 pf contribution instead of 12%. Now I have understood I'm loosing on tax benefit from employer contribution. Can I restructure again back to 12%?
Very informative.. Some information on EPS functioning could have helped more
bit confuse Step 2 - 3.67 = (1835 EPF) , STEP 2B 8.33 ON 15000= 1250 EPS THEN 8.33 % OF 35000 WHY EPF 3.67 AND AGAIN 8.33 CALCULATED AGAIN ????????? 8.33+8.33+3.67
One 8.33 is calculated against 15,000 -->pension
Other 8.33 is calculated against remaining 35,000 out of example 50,000 salary
I like this video. Can an employee withdraw EPS fund under any circumstances? Provide some details on this
The biggest benefit of EPF is its financial inclusiveness. In a country where financial awareness has only begun to improve, EPF by its default opt-in policy, ensures most of the working class has a corpus built for their raining days. I remember 20 years ago, when daily wages were far lower than they are today, the company my Dad used to work, used to deduct EPF (even though it was meagre) from their weekly wages. I only hope those people are getting some pension and got a good corpus upon retirement
Hello Sir,
Why my company is deducting only 1800/- while my basic is more than 15000 per month?
Hi Shankar, If someone left the job who has already PPF and after left the job he is planning to start business but initial few month he has only 2 people in his own company, how he will manage his PPF account with any stop.
hii, it was really good, can you prepare latest status on EPFO, it will be great full
Nice narrated with complete frame about the epf, thanks, was having my own understanding the eps part is 3.67% of employer part and balance 8.33% is added to employee benefit from employer contribution. Certainly your narrative given the opposite dimension. Trust this may give better clarity to all. However if you can give narrative with an example for contributions and amount accumulated for a period of 5 years , 10 years with interest calculation on accumulated amounts.. 👍🙏
What to do if employer deduct his share also from employee salary? Is it legal for a employer to deduct both share of epf from onle employees salary.
Dear team,
Can you throw some light on applicability of tax if EPF is withdrawn by an employee due to not into service for more than 2 months and age of employee is less than 55 years?
इस वीडियो में कुछ बाते नही बताई गई जैसे- EDLI में पैसा कैसे जाता है, कर्मचारी के मृत्यु पर बीमा कितना मिलता है। SURVIVE कर जाने पर EDLI में जमा पैसे का क्या होता है। और EPS के पेंशन कैसे मिलता है ?
Sir
All the casual workers are entitled to pf no?
There was a question in upsc cse prelims
If an employee doesn't withdraw his provident fund after retirement (at 58 years) then after whether he will get interest on p f balance or not?
Great video.Thank you for your comprehensive explanation. One doubt is you haven't elaborated on life insurance after mentioning it at the beginning of the video. Do we pay for life insurance too or not?
My previous company is a third prty services provider having 25 employees but not yet registered EPFO, not providing pf benefits my salary is less than 15k pm and more than 10k pm, instead of that they use to deduct 1000 every month from our salary as variable amount. Is it illegal.
Hello @ETMONEY, I am working for 3 years and now when I asked my HR team for introducing pf they say it is not possible in between,please help.
Sir, How to change my epf nominee bank details after successful e sign?
Watch at 1.5%. You're welcome 😂
Thanks Shankar! I really admire you for all the knowledge you impart to all of us.
Most welcome, Abhishek Arora. I'm learning aswell in the process and it's the research part that is most exciting. Glad its working for all.
Great info sharing mr Shankar
Infact it is very useful and makes every one to know about EPF &EPS.
Would be great get information on the interset part ,.prior to that if we withdraw our EPF on attainment of 58 years are we eligible to get the interest after withdrawal pl comment
What about gratuity. Gratuity period is less or not please confirm
Dear Dinesh Kolte: Didn't understand. Can you please elaborate?
Good information about EPF and deduction rules i like it
Hello, pls explain how pension amount is determined upon his retirement at 58 yrs and what would be the pension amount per month in detail.
Perfect! Exactly the information I was looking for. Thank You ET Money. Your videos are always informational, crisp and to the point. Waiting for the next one!
Great to hear! Thank you for the appreciation, Pramod Balakrishnan
Now explain the meaning of crisp pramod Bala krishnan
Did you forget to cover EDLI? How does it provide insurance?
Most helpful part of the video is the 2.5 lakh rule which consists only employee contribution and not employer's contribution because this rule has created lot of confusion.
Nice video. Employer will deduct 12 percentage of employee basic and transfer to epf. Employee has an option to choose to transfer rest 88 percentage to epf.. It is called voluntary epf..
Many people do opt for volunteer EPF.. Bocz no other saving will give 8.5 interest.. It will impact people doing volunteer pf
Please do a video on VPF (voluntary provident fund) also. Explain if the limit of 2,50,000 for EPF only or combined epf+ vpf
Hello Sir..can u plz share ur insights on how will the subscribers can withdraw the amt from epf on age of 58 or more and what happens to 8.33% contributed to EPS - how is that taxed or what are the rules for withdrawal on that amt
Insurance component was not covered
What about the inbuilt insurance plan? What kind of insurance is this? What will be the coverage? How can we avail it? Can you please throw some light to it?
nice
Very Crystal clear explanation 👍 Requesting a video on PF advance withdrawal and the process
Sir my pf monthly money cut avutundi but balance chupinchatledu amcheyali
watched video at 1.25X speed
I have transferred the EPS of 2 of my previous accounts to my new account. The statement and passbook provide the details of the transfers. However, I do not see the EPS part (INR 1,250) being transferred. Is this normal?
Hi you did not cover that how it can be consolidated if you have worked with different organisations
In my knowledge, there are at least 2 things about EPF which should've been included in the video.
1. We're not enrolled in EPS if our very first Basic + DA exceeds 15,000. So a person with more than 15k salary at the time of first salary will only have EPF from employer contribution and not EPS. However, once enrolled in EPS, we cannot revert it back even if our salary increases.
EDIT: and EPS does not earn any interest. our money will be stagnant, not growing even a single percent, and we won't be able to withdraw it either.
2. Withdrawal of EPF while being unemployed has lots of conditions. Only if we're employed for more than 5 years in a row, will we be allowed to take out the money without paying any tax (EEE). If we withdraw before completing our 5 years of continuous service, all the interests earned from EPF will be taxed. Moreover, all our previous years' Tax deductions under 80C due to EPF will be reversed.
These were important points and would've made the video complete.
Very well noted!
Thank you Sir 🙏
Thanks for contributing Aseem Sharan. Yes .. these and a lot more points did come up in our research but we could not fit everything in a single video of 17 mins. There will be a follow-up video certainly .. but nothing works better than viewers doing their own research as you have done here.
@@gd5546 yes you will get.. just keep transferring old pf to a new one while changing the employer. Also, be assured your UAN is not changing everytime you switch your job.
If i have epf account which started 5 years before, now am initiating the contribution towards vpf. So while withdrawal, interest paid on that savings will be taxable?
Informative and you summed up rightly. SIP in Risk free debt mf with EEE. Awesome
Dear Sir/Madam,
One employee is unemployed for two months and he claimed his 100% EPF amount. He rejoined the same organisation and the employer also started deducting & contributing EPF in the portal, here the thing is, some how the employer has not shown or mentioned his joining date but the employer keep-on contributing. After few months when the employee looks at his passbook the contribution is being credited to his old account which he has already claimed.
Now the employee is not able to claim because there is no new joining date to show exit date.
Please help.
प्रणाम सर,
हमारी सैलरी 18 हजार है, epf नहीं कटवाना चाहते, क्योंकि कंपनी epf ke नाम से पैसे की कटौती कर epf खाते में पैसा जमा ही नहीं कर रहा है, कृपया कोई आधार या कागज बताएं जिसको दिखा के हम Epf नहीं कटवाए। कंपनी बहुत शोषण कर रहा है😭😭
Is there any interest on EPS contribution? How much is it?
@@ETMONEY oh God then inflation will make the contribution to quite lower right. Then how come it's better retirement corpus tool ?
@@venkatraohyd Ppf Nps is way better than this for retirement
I Have one question
As I can see, no interest has been added to my PF account for FY2024, and I am planning to withdraw the full PF amount as I am eligible to withdraw.
so, if I submit the withdrawal request and it settles in 2-3 months times and by the time if PF interest is not added for FY2024, will I get interest amount in future or while closing account will they calculate interest and add into final withdrawal amount
I have registered organisation in epfo. I want to know if I am giving inhand salary to one employee is 16000 (Basic(7000)+HRA(4000)+Special allowance(4000)+Medical allowanc(1000). Should I have to register him for epfo. What is the limit for epf?
Sir I am resigned the job on 03/01/2023 and still I am not joined any company and applied for 10C and 19C under the reason going abroad for employment.The claim is rejected because of reason the January month pf contribution is not received.Is it possible ? How can employer provide contribution after resign and I need help regarding solution for this issue.kindly help
Sir, when full EPF is withdrawn before 10 yrs completion. Is interest given till the date of submission of withdrawal form or till the date of disbursement of money by EPFO
Good Video, 1 question, If I invest my 100% of Basic Salary in VPF
1.Will I get same interest rate on whole amount?
2.Whole PF+VPF amount after my retirement will be Tax free?
Hello sir my name Mukund kadu...my date of birth 14/12/1963 and up to 2003 I have resign from my previous organization of 11 year salery and after I join 01/04/2009 in second company...now I retirement on this year ..but in my service history not showing old pention amount or any information relevant previous organization...what can I do
I have received an offer letter, where the employer contribution is written as 1800.
My basic is around 45k. I hope the deduction from my salary towards employee contribution will also be the same as of employer (1800).
Again a nice video..
1. What happens to EPS component? When can I get it ? Only after 58 years? What would be pension amount and duration?
2. Some big organization have trust, how are they different from epf? Will EPF and EPS components be different in trusts and normal EPF
Mr. Hemanth, EPS can be availed only after attaining age of 58 years. The pension amount would depend on your last drawn basic salary and has a specific formulae to calculate the same.
Dear sir, I'm working in a private school. The management is providing pf for some employees. My basic pay is 9000 and total salary is 28. When I asked about pf, the manager said that pf is only for employees who are getting salary under 15000. Am I getting cheated or is that the rule really. Can you please tell me whether Iam eligible for pf?
Somebody please reply if you know about the issue of non payment of pf amount from the employer . Can I withdraw the remaining balance when i m in urgent?
Beautifully explained and illustrated with nice visuals.. always looking forward to listening to you and your insights on various financial features which are at our disposal and can be leveraged well with proper guidance and knowledge.. Thanks for uplifting us.
Most welcome and thanks for the kind words, Sanjiv Y
Hi Sr I will like to no can I still apply for my UIF I'm now 66 years Old I never Drow in my intire live . Even I still struggling to claim my pension . I work sins 1974 in the building industry and electrical
Why my pension contribution is shown 0, and my employee and employer contribution are same ie 12% of basic. What should I do? Please help me with this
Basic question. How to covert EPF to EPS? Is it possible? If so how much pension one can get for typical EPF amount?
5800 Berge Islands
U left the job in 2020 and not working after that
At the time of left the job my total working was apx 4 years
Can I withdraw my entire EPF fund
And what is the procedure for the same
Where is the LIFE ISNURANCE Part....?
As u told EPF provides safety, rerurns & INSURANCE toooo.
Question on withdrawal....for withdrawal of EPF money, if one is not employed for greater than 2 months....does it also mean that if one is an independent consultant he/she is considered as unemployed? Is withdrawal allowed in that case?