What is the full form of EPFO?

Introduction

Employee Provident Fund Organization (EPFO) is a social security organization that strives to deliver financial protection to employees in the nation by operating their provident fund, pension, and insurance plans.

It helps to manage the Employees' Provident Fund (EPF), which is known to be a retirement benefits plan for salaried workers. It also organises the Employees' Pension Scheme (EPS) and the Employees' Deposit-Linked Insurance Scheme (EDLI). EPS delivers a pension to employees who have finished ten years of service, while EDLI delivers a life insurance range to employees in case of their untimely demise.

History of EPFO

The chronology of the Employee Provident Fund Organization (EPFO) dates back to the early 1950s when the Indian government presented the Employees' Provident Fund and Miscellaneous Provisions Act, of 1952. The act desired to deliver social security to industrial workers in the country by launching a provident fund scheme, a pension scheme, and an insurance scheme for workers.

Originally, the administration of the provident fund scheme was the accountability of the state governments. However, in 1952, the central government gained control over the administration of the scheme and set the EPFO as a statutory body to oversee the scheme at the national level.

EPFO has experienced several transformations and reforms to enhance its functioning and extend its reach. In 1995, the association oriented the Employees' Pension Scheme, which delivers a pension to employees who have finished ten years of service.

In 2014, the EPFO founded the Universal Account Number (UAN) to make it more effortless for employees to control their EPF accounts. The UAN is a distinctive identification number that is transferred to every EPF member and stays accurate throughout their career.

In 2018, the government declared a consequential reform of the EPF scheme, whereby the EPFO would entitle employees to void 75% of their EPF corpus after one month of unemployment, and the remaining 25% after two months of unemployment.

Functions of EPFO

The Employee Provident Fund Organization (EPFO) functions in diverse operations linked to the administration of employees' provident funds, pension, and insurance schemes. Some of the fundamental roles of EPFO are:

• Registration of employees − EPFO registers employees into the provident fund scheme and delivers them with a Universal Account Number (UAN). It functions as a remarkable identification number for their PF account.

• Exhibition of grants − EPFO gathers monthly subsidies from both the employee and the employer towards the employee's provident fund account.

• Investment of funds − EPFO imbues the provident fund grants in varied government protection, bonds, and other economic instruments to forge a recovery.

• Upkeep of accounts − EPFO upholds the provident fund accounts of employees and maintains track of their grants, interest, and other pertinent facts.

• Expenditure of benefits − EPFO pays out the amassed provident fund credit to employees at the time of retirement or in case of resignation, demise, or disability.

• Pension scheme administration − EPFO addresses the Employees' Pension Scheme (EPS), which delivers a pension to employees who have finished ten years of service.

• Insurance scheme administration − EPFO organises the Employees' Deposit-Linked Insurance Scheme (EDLI), which supplies life insurance scope to employees in case of their untimely demise.

• Online assistance − EPFO delivers diverse online assistance to its members, including reviewing their PF balance, filing claims, editing personal information, and tracking their PF account.

• Conflict solution − EPFO settles disputes related to provident funds, pension, and insurance schemes through its grudge redressal mechanism.

Benefits of EPFO

The Employee Provident Fund Organization (EPFO) delivers several advantages to employees in India. Those benefits are mentioned below:

• Social protection − EPFO's provident fund, pension, and insurance schemes deliver social protection to employees and their families in case of retirement, disability, or untimely death.

• Tax advantages − Grants made to the provident fund scheme are qualified for tax determinations under section 80C of the Income Tax Act, which allows workers to save on their taxes.

• Guaranteed returns − The EPFO funds the provident fund grants in low-risk government protection, bonds, and additional financial tools, which deliver an assured return on investment.

• Employer contribution − Employers are directed to contribute an equal amount to the employee's provident fund account, which allows expanding the general corpus and supplies additional financial protection to workers.

• Transferability − EPFO's Universal Account Number (UAN) is manageable for workers to move their provident fund equaliser from one employer to another, thereby providing the continuity of their retirement redemptions.

• Online assistance − EPFO supplies diverse online services, such as preventing PF balance, filing claims, and correcting personal information, which makes it suitable for employees to control their retirement savings.

• Grievance redressal − EPFO has a powerful grievance redressal means that enables workers to fix any problems related to their provident fund, pension, or insurance schemes.

Conclusion

The Employee Provident Fund Organization (EPFO) plays a crucial role in operating the provident fund, pension, and insurance schemes of employees in India. EPFO delivers social security to employees and their families, tax benefits, guaranteed returns on investment, and employer grants to increase the general corpus of retirement savings.

Further, EPFO's online assistance and grievance redressal mechanism enables employees to control their retirement savings conveniently and fix any problems related to their schemes. The EPFO has developed over the years to become a steadfast and efficient association that guarantees the monetary security of millions of employees in India.

FAQs

Q1. What is the number of days required to claim for EPFO?

Ans: The Employees Provident Fund Organisation strives to settle all assertions within 20 working days from the date of the token of the affirmation.

Q2. What is the ultimate withdrawal limit for PF advance Form 31?

Ans: The ultimate limit for withdrawal of PF advance form 31 is 90% of the amount in the EPF account.

Q3. How much provident fund can be withdrawn per year?

Ans: An employee can withdraw up to 5 Lakhs of Provident Fund per year.