An Employee who switches job usually transfers the Employee’s Provident Fund (EPF) to his new employer. Here the one mystery one of the mysterious questions for many employees is “What happens to the fund in Employee’s Pension Scheme (EPS) In this process PF account number of the new employer shows transferred Provident Fund Balance, But what about the EPF money from the previous employer?
Here are the complete details about How EPS works and How one can avail it:
An employee contributes 12 percent of his/her basic salary towards EPF. From this contribution of 12 percent that employer makes to goes EPFO (Employee’s Provident Fund Organisation) fund of the employee but 8.33 percent is the major proportion goes to EPS with a cap of Rs. 1,250 (earlier Rs. 541) a month. .
An employee is eligible for pension only after completing 10 years of service under EPS. Employee will receive the pension after he reaches 50 or 58 years of age (subscriber can choose when to retire). One important thing here is the former will get lesser amount of pension than the latter. (If the employee retires before attaining the retirement age.)
When an employee switches his/her job, he or she has to submit form 11 and 13 to request a transfer of PF balance from older organisation to the new one.
Since EPF is a pension scheme, employee EPF does not earn any interest. Like that on your EPF balance. While on transfer, the EPF balance in the new PF account will be reflected as a lump sum amount of the month of transfer but employee EPF balance will be nil. If the new employer from different area jurisdiction employee PF account will change but UAN remains the same.
An employee can either withdraw the EPS amount or take the ‘Scheme Certificate’ if he/she is still working and not completed 10 years in his/her service. He/She can only apply when he/she has quit his/her job means before joining in any other company. For this employee has to fill form 10C, EPFO recently introduced ‘UAN based form 10C download here.
The employee will not receive entire contribution made by the employer. Here is the table that shows complete information.
If the salary of an employee at the time of withdrawal after 8 years, by filling the form 10C, is Rs. 15,000, then EPS money he receives is Rs.1,23,300 (Rs. 15,000*8.22). Pension begins at the age of 58. To claim that, one has to fill form 10-D. The pension amount an employee gets is based on this formula:
The maximum amount that can go into the EPS of an employee is exactly 8.33 percent, and basic pensionable salary is capped at Rs. 15,000. So, the amount comes to Rs. 1250 each month.
How to check my EPF balance and how to download my EPF UAN passbook?
EPFO members can check their EPF balance through EPFO website.
To check your Provident Fund (EPF) balance you need UAN number. UAN stands for Unique Account Number which is given by EPFO to its members. UAN is a 12 digits unique number is generated for each of the Provident Fund (PF) Account. UAN will remain same even if an employee changes the company.
To know your EPF balance follow these steps
If you don’t know your UAN number, ask your employer to activate UAN or You can visit EPFO portal and click on know your UAN status. Here you need to provide your EPF Account Number, Aadhaar Number, Name, Date of Birth and your registered mobile number.
Missed Call, Give a missed call to 011-22901406 from your R registered mobile number. The EPFO will send you an SMS with your complete credentials such as PF number, UAN, EPF balance etc.
SMS - send an SMS EPFOHO UAN ENG to 77382 99899 from your registered mobile number. The EPFO will send the details of your EPFO account through an SMS.
EPF portal- Login with your UAN and password in EPF Unified member portal. From member passbook you can download your EPF account passbook.