EPF

How EPF Works:

• The employee contributes 12% of their salary (basic + DA), and the employer contributes an equal amount (12%), a portion of which goes towards the Employees’ Pension Scheme.
• The total contribution to the EPF account is the sum of both the employee’s and employer’s contributions, which is credited to the employee’s EPF account each month.
• The accumulated amount grows over time with the interest paid by EPFO, and this balance is available for withdrawal or transfer when the employee leaves the organization or at the time of retirement.

Universal Account Number (UAN):

The UAN is a unique identification number assigned to every EPF member. The UAN is used to link multiple EPF accounts of the same person if they change jobs. The UAN allows employees to:

• Check EPF balance.
• Transfer EPF from one employer to another.
• Update personal details like contact information and KYC details.

Benefits of EPF:

1. Retirement Savings: EPF helps employees build a retirement corpus.
2. Tax-Free Interest: The interest earned on the EPF balance is tax-free.
3. Loan Facility: Employees can avail loans against their EPF balance in times of financial need, such as for home loans or medical emergencies.
4. Insurance: EPF is often bundled with Employee Deposit Linked Insurance (EDLI), which provides life insurance coverage to the employee.