Every working professional makes contributions to avail the employment benefits either implemented by the company or the government. Willingly or unwillingly, if employees fall under the defined category, the required amount is automatically deducted from their monthly salary. Now, since these schemes and plans are important, you cannot refrain from them. And on top of it, spreading awareness at least amongst your employees about the details of the same is a must. In this article, we will talk about the employment fund that is widely recognized, but only a few have in-depth understanding of it – EPF, short for Employees’ Provident Fund.
It is highly imperative to educate your staff about the background, eligibility and applicability of this scheme and to answer questions such as how to withdraw PF online and how to calculate it among others. It is better if you organize a knowledge-sharing programme and apprise them of the EPF scheme in the following steps:
Introduce The EPF Scheme (The Basics)
Employees’ Provident Fund is the primary scheme governed by EPFO (Employees’ Provident Fund Organization) under Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. The focus area of this government regime is to provide post retirement income and benefits to the employees registered under the same.
Brief Them On Online PF Withdrawal
Now that they know the history of the EPF scheme and understand where it came from, it is time to update them about the latest advancement in the area. The option to check the available PF balance and withdraw the same online has been introduced in the system since quite some time now. So, you need to ensure that they keep abreast of the steps that need to be followed:
- Visit the EPFO government website, i.e., www.epfindia.gov.in and go to the e-SEWA portal
- Login using your UAN (Universal Account Number), password and enter the captcha code that flashes on your screen
- Go to the ‘Online Services’ tab and click on ‘Claim (Form-31, 19 & 10C)’
- Select the relevant claim, which is, PF Advance (Form 31) for making the online PF withdrawal
Inform Them About The Applicability
Now that you know how to withdraw PF online, if you look at it from the organization’s point of view, any establishment that has an employee base of 20 employees or more is liable to contribute to the EPF scheme compulsorily. But of course, exceptions do exist and there are certain conditions under which a company can opt for EPF even if it employs less than 20 members.
Tell Them About The Eligibility Criteria
Talking about the employees and their eligibility to get registered under this scheme, it totally depends on their remuneration. All the employees earning a monthly wage of INR 15,000 or less have to mandatorily make the contribution. The ones not falling in this category do not have to get the amount deducted from their salaries. However, the latter section of employees that earns above INR 15,000 can contribute the amount for the Provident Fund after taking permission from the Assistant PF Commissioner and in agreement with their respective employers.
Teach Them To Do EPF Calculation
This is the most important part that your employees should be aware of in order to cross-verify the amount deducted. The overall deduction is 12% of the employees’ (Basic Pay + Dearness Allowance) from both the ends.