FAQ

1 - Whether an employer can deduct employer’s share of contribution from the wages of employees?
Ans : No. It is not permissible. Any such deduction is a criminal offence.
2 - Can the wages be reduced by the employer on account of payment to the EPF?
Ans : No. It is specifically barred under section-12 of the EPF & MP Act,1952.
3 - Whether a daily rated employee or the piece rated employee can become a member of the EPF?
Ans : Yes.
4 - If an employee is paid wages on daily basis or on piece rate basis how the contribution is determined?
Ans : The wages paid in a calendar month will be taken to determine the contribution due.
5 - Whether the member is entitled for full interest on the belated deposit of PF dues by the employer?
Ans : After realising the dues, the PF members will be given full interest for each due month and it will in no way affect the interest due to members on the contributions paid. The employer shall be charged penal interest under section 7Q and penal damages under section 14B of the Act respectively.
6 - An employee is paid subsistence allowance during the period of his suspension. Whether PF contribution is payable on this?
Ans : No.
7 - Can an employee contribute to the EPF after leaving the service?
Ans : No. In the absence of wages & Employer no recovery can be affected. Any contribution by the member must be matched with employer’s share of contribution.
8 - The contribution has been recovered from the wages of the employee but the employer had not paid to the EPF. What is the remedy?
Ans : The Employees’ PF Organization will invoke penal provisions of the Act to recover the dues from the employer. Complaint can be lodged with Police under section-406/409 of IPC by the EPFO for action against such employers.
9 - What will be the effect of non-payment of PF dues by an employer? Or how a member is affected for non-payment of EPF dues by the employer?
Ans : The Provident Fund amount due to the member will be paid only to the extent of the amount realised from the employer.
10 - Whether an employer can recover any outstanding dues from the PF amount payable to a member?
Ans : No. It is totally prohibited.
11 - What are the measures by which the PF amount is recovered from a defaulting employer?
Ans : Attachment of Bank Accounts, Realisation of dues from Debtors, Attachment & Sale of properties, Arrest and Detention of the Employer, Action under Section 406/409 of Indian Penal Code and Section 110 of Criminal Procedure Code, Prosecution under section 14 of the EPF & MP Act,1952.
12 - How a member is informed about the non-payment of contributions recovered from the wages of the employee but not paid to the EPF?
Ans : The Annual P.F. Statement of Account/Member Passbook will indicate the amount paid by the employer. The default period in a year is thus made known to the members. In the current scenario if the member has activated her/his UAN the non-payment/payment of contributions can be verified every month through the e-passbook. Currently, members also receive sms on their registered mobile phones on credit of monthly contribution into their PF account.
13 - Whether the P.F. amount credited to the member can be attached against any liability?
Ans : No. The Provident Fund enjoys protection against attachment by any Court also as per the provisions of section 10 of the EPF & MP Act,1952.
14 - When an employer becomes insolvent or when a company is wound up, whether the contributions will be paid in priority over other debts?
Ans : Yes.
15 - When wages are not collected by the member whether the PF can be deducted or not?
Ans : The employer, before paying the member his wages, is required to deduct the PF contribution from his wages and pay to the Regional PF Commissioner. As such PF can be deducted.
16 - Can a member pay contribution in excess of the statutory rate of 12%?
Ans : Yes. The member can pay voluntary contribution in excess of his normal contribution of 12% of Rs.15000/-. The total contribution i.e., voluntary + mandatory can be up to Rs.15000/- per month. (The employer may restrict his own share to the statutory rate). The member can also contribute on higher wages i.e., >15000/- after getting permission from APFC/RPFC as per the provisions of para-26(6) of the Scheme.
17 - Can a member demand for showing the recovery of contributions from the employer?
Ans : Yes. The contribution card of each member in Form 3-A/ECR copy can be demanded from the employer.
18 - How the contract employees are protected and given their P.F. when the contractor is not paying the dues to the principal employer?
Ans : It is the duty of the principal employer to ensure that the Contractor discharges his liability. The Principal Employer must allow payment of bills after ensuring that the Contractor has enrolled and complied in respect of all eligible contract employees every month. The Principle Employer can check the remittance and employee name by using the Establishment Search option available in our website www.epfindia.gov.in. The path is OUR SERVICES >> For Employers >> Important Links >> Establishment Search (Also view Remittances and member name). If the Principal Employer ensures that all contract employees activate their Universal Account Number (UAN), then any default by the contractor can be nipped in the bud.
19 - Can a member refuse to part with the payment of contribution to the Pension Fund?
Ans : The Pension contribution is only a diversion from the employer’s share of Provident Fund. Hence no consent is required from the member and refusal does not arise.
20 - Whether an employer can stop paying Employees’ Provident Fund contribution in respect of a member who had attained the age of 55 or 60?
Ans : No. The Employees’ Provident Fund Contribution should be paid till the date of his leaving the service, irrespective of the age of the member. Employees who ceases to be EPS(pension) member will get Employers 8.33% contribution in PF.
21 - In case the PF amount is not settled within 20 days to whom the matter is to be reported?
Ans : He can approach the Regional P.F. Commissioner in charge of grievances; file a complaint on the website using the EPFiGMS feature in the section ‘FOR EMPLOYEES’. The url for the grievance page is http://epfigms.gov.in/ or he can appear before the Commissioner in the ‘Nidhi Apke Nikat’ program being conducted on 10th of every month.
22 - Is there any time limit for withdrawal of Provident Fund dues?
Ans : Only in the case of resignation from service (not superannuation) a member has to wait for a period of two months for withdrawal of the PF amount.
23 - When the employer is not attesting the claim form how to submit the application for withdrawal of provident fund?
Ans : It is the duty of the employer to attest the application form. In case of any dispute, the member may attain attestation preferably from the bank in which he has maintained his account and thereafter submit the same to Regional PF Commissioner, explaining the reasons for not obtaining the signature of the employer. The Regional P.F. Commissioner will pursue the matter with the employer wherever necessary. If the member has activated his Universal Account Number and linked his bank account and Aadhaar then he can submit composite claim (Aadhaar) which only requires the signature of the member.
24 - In case of change in employment whether a member can get his PF account transferred?
Ans : On change in employment, the member should necessarily get his PF account transferred to his present establishment, duly submitting Form 13(R). A member can submit claim for transfer online using member interface at unified portal.
25 - If past accumulations are not transferred on cancellation of exemption, how the provident fund amount is paid to the members?
Ans : The local RPFC will ensure transfer of securities/cash and arrange for refund of dues to the members.
26 - How is a PF member informed of the transfer affected?
Ans : A copy of Transfer Certificate (Annexure-K) issued to the transferee Regional P.F. Commissioner/P.F. Trust giving full details of the transfer can be requested from the EPF office.
27 - What is the method of crediting interest to the P.F. subscribers?
Ans : The compound interest is credited on monthly running balance basis at the statutory rate declared for each year. For 2016-17 the interest declared is 8.65%.
28 - Whether provident fund provides for any refundable loan for Housing etc.?
Ans : No. But, non-refundable loans for housing are available.
29 - I am an employee working in an establishment to which the PF Act is not applicable. Can I become a member of the EPF?
Ans : An employee can become a member only after the application of the Act to the establishment.
30 - If an employee is not given the PF membership, to whom he can approach?
Ans : He can approach his employer failing which he can approach the Regional Provident Fund Commissioner of the nearest PF office.
31 - Whether the employee working in a Branch Unit of an establishment located outside the state is eligible to become a member of the EPF?
Ans : The Act is applicable to an establishment as a whole. Hence, its employees, irrespective of their place of work or location, are eligible to become member of the Fund.
32 - If an employee is working in more than one establishment how his membership is regulated?
Ans : His membership is reckoned separately for each establishment. (Under different Provident Fund Account Numbers/ member Ids)
33 - Can an employee become a member of EPF without any age restriction?
Ans : There is no age restriction for becoming a member of the Provident Fund, whereas an employee who has already attained the age of 58 cannot become a member of the Pension Fund.
34 - Whether an employee can become a member of the EPF without any restriction to his salary/wages?
Ans : The employees who are drawing the basic wages and dearness allowance up to Rs.15, 000/- are alone eligible to become a member. He will continue to be a member even when his pay exceeds Rs.15, 000/-. However, his contribution to the Fund will be restricted to Rs.15, 000/-. The employer is also required to pay his matching contribution up to Rs.15, 000/-. Employees drawing more than Rs.15000/- can also become a member of EPF by giving option under para 26(6) of the EPF Scheme. The option has to be submitted to the EPF office within 6 months of joining of such member.
35 - Whether an apprentice can become a member of the EPF?
Ans : No. But, when he ceases to be an apprentice he should be enrolled immediately.
36 - If an employee is drawing more than Rs. 15000/- (Basic + DA only) is he required to become a member of the EPF?
Ans : Such employee is not required to become a member, if he is not already holding the PF membership. Otherwise, if both the employer and employee are willing, he can become a member by giving option under Para-26 (6) of the PF Scheme. The option has to be submitted to the EPF office within 6 months of joining of such member.
37 - If an employee is transferred from one establishment to another establishment whether he is required to be enrolled as a member once again?
Ans : He is required to be enrolled as a member under the new establishment, for transferring his Provident Fund from his previous account.
38 - If a person is working in an establishment without receiving any wages whether he can be given the PF membership?
Ans : Membership is allowed only where the wages are payable to an employee.
39 - Whether an employee can become a member of the Pension Scheme only, without contributing to the PF?
Ans : No. By virtue of membership of Provident Fund only one can become a member of the Pension Scheme. From 01/09/2014 any new employee joining an establishment and drawing basic wage more than Rs.15000/- per month can only become a member of the PF after submitting option as per the provisions of Para 26(6) of the EPF Scheme. However, he can not get the membership to the Pension Fund. Both employee share of 12% and employer share of 12% contribution shall be paid into the Provident Fund only for all such employees.
40 - Whether an employee can continue as a PF member even after his retirement?
Ans : Yes. If one continues to work even after attaining the superannuation age.
41 - Is there any option available to an employee whether to become a member of the EPF or not?
Ans : No option.
42 - Whether an EPF member can discontinue his membership, while in employment?
Ans : Not permissible.
43 - Where an establishment is having its own recognized private PF Trust whether an employee can be allowed to continue in the private PF without joining the EPF?
Ans : Employee can be allowed to join the private PF Trust but the Trust has to take exemption from the EPF Scheme. He will however continue to be governed by the Pension and EDLI Schemes. All private trusts must obtain exemption from EPFO to enjoy Income Tax benefits.
44 - How long an employee can continue his EPF membership?
Ans : There is no restriction of period for membership. Even after leaving the establishment a person can continue his membership. However, if no contribution is received into a PF account for 3 consecutive years the account shall not earn any interest after 3 years from the stopping of contribution.
45 - How the period of non-employment between two spells of employment is treated under EPF?
Ans : Non employment period is not affecting the EPF but affects the calculation of service to decide the quantum of benefit under the Employees’ Pension Scheme.
46 - What will happen for the EPF membership of an employee during the period of closure, lock-out, strike etc.?
Ans : During such period the membership will continue and in the absence of wages no recovery of contribution will be made.
47 - Whether an employer can also join the PF?
Ans : No.
48 - Whether an employee can continue his EPF membership after leaving the employment?
Ans : Yes.
49 - Whether any employee can join the EPF directly?
Ans : No. It is only by way of employment in an establishment covered under the provisions of the EPF & MP Act, 1952.
50 - A Security Guard is working for different establishments; under whom he is required to secure membership?
Ans : If the employer of the Security Guard has been brought under the Act, the membership will be given through the employer, irrespective of his place of work.
51 - If the establishment is not employing 20 persons, whether an employee can join the EPF?
Ans : Yes. The majority of employees and the employer can voluntarily opt for joining the Scheme as per provisions of Section-1(4) of the Act (Voluntary Coverage).
52 - What other benefits are accrued on joining the EPF?
Ans : On joining the EPF, the member is provided the benefits under Pension (restricted to employees with Rs.15000/- or less monthly wage) and Employees’ Deposit Linked Insurance Scheme.
53 - Whether an employee already drawing Pension under EPS, 1995 is required to join the PF and Pension Fund?
Ans : He is required to join only the PF and he cannot become a member of the Pension Scheme.
54 - An employee who joins an establishment at the age of 58 is eligible to become a member of the Pension Fund?
Ans : No.
55 - How long a member can retain his Provident Fund in his account?
Ans : The membership can be retained till the withdrawal of his Provident Fund dues. However, if the account does not receives any contributions for more than 3 years interest won’t be credited to the account after the 3rd year.
56 - In the absence of nomination, how the P.F. amount of a deceased member is paid?
Ans : It is payable to the family members in equal shares, under Para 70 (ii) of EPF Scheme, 1952. If there is no eligible family member, it is payable to the person(s) who are legally entitled to it.
57 - What is the need for giving nomination for pension?
Ans : On the death of a Pension member (before receiving the pension), if there is no eligible family member, pension is payable to the nominee.
58 - In the absence of valid nomination and no family to whom the Pension amount is payable?
Ans : Payable to the dependant parents, (dependant father followed by dependant mother).
59 - Whether an unmarried person can nominate somebody from outside?
Ans : Yes. But, on acquiring a ‘Family’ the nomination is treated as invalid and the benefits under EPS-1995 shall be paid to the spouse and children, if any.
60 - Whether an employee who has not opted for the earlier Family Pension Scheme, 1971 can join the EPS-1995 ?
Ans : Yes.
61 - What is the formula for calculating the Pension amount?
Ans : Pension= (Pensionable Salary (average of last 60 months) X Pensionable Service)/70.
62 - What is the quantum of pension a member can get on his superannuation?
Ans : A member who joins the Employees’ Pension Scheme 1995 at the age of 23 and superannuates at the age of 58, and contributing to the (present) wage ceiling of Rs.15000/- may get about Rs.7500/- as pension if service is 35 years. (Pensionable Salary X Pensionable Service)/70 = (15000x35)/70 = 7500
63 - How the average salary is determined for granting pension?
Ans : The average salary is determined only for giving the pension to member. It is the average of last 60 months. (Non-contributory period, if any, is reduced)
64 - What are the advantages of taking a Scheme Certificate?
Ans : 1) It facilitates transfer of Pension Accounts when the employment is changed. 2) If the Holder of Scheme Certificate dies the family will get family pension.
65 - In case of death of a member, who was an Ex-serviceman whether family pension is payable or not?
Ans : Family pension is payable i.e. in addition to the Military Pension, i.e. family pension under Rule 54 of the CCS (Pension) Rules, 1972. (Effective from 27-07-2001 only)
66 - Can a member seek exemption from the Pension Scheme?
Ans : Individual member cannot seek exemption from the Pension Scheme. Only an establishment can seek exemption.
67 - At what age a member is eligible for pension?
Ans : A member is eligible for pension on superannuation at the age of 58 years. If a member leaves employment between 50 and 57 years he can avail the early (reduced) pension.
68 - What is the service required for giving pension in case of death of the member?
Ans : In case of death of a member, The family pension and children pension is payable even after receiving one month’s contribution (including part of the month) for Pension Fund.
69 - If a member dies to whom the pension is payable?
Ans : On death of the member the Pension is automatically payable to the spouse (Widow/Widower). In addition, the children are also eligible till attainment of 25 years of age (2 at a time). Any disabled child in the family shall get disabled pension for life apart from the two child pensions.
70 - In case the employer has failed to pay the pension contribution whether any pension is payable or not?
Ans : Non-payment of pension contribution by an employer will not affect the grant of Pension. Pension is guaranteed.
71 - Can a pensioner get pension anywhere in the country?
Ans : Yes.
72 - How the pension of a member who works for different establishment is determined?
Ans : The wages and the service of the member are consolidated to determine the Pension.
73 - Is there any increase in the pension amount every year?
Ans : No.
74 - When a member avails reduced pension at the age of 50 can he get his full pension on attaining 58 years?
Ans : No. Once Pension is sanctioned it cannot be altered.
75 - What are the criteria for determining the date of eligibility for early pension (Before 58) ?
Ans : The member is required to indicate his option regarding the date from which he requires early pension in the application form. If no date is given in the claim form then the date of application shall be taken as the opted date.
76 - Can a member avail pension even while he is in service?
Ans : The member who continues in service even after 58 years can avail the Pension from the age of 58. If a pensioner, who has availed the early pension, may take up employment thereafter and in such cases he will not be eligible to join the Pension Scheme. And the 8.33% contribution from Employer side will go towards EPF fund.
77 - Can I surrender or sell my full pension for getting a lump sum payment?
Ans : No.
78 - Is it compulsory to withdraw the pension benefit along with the P.F. amount?
Ans : No. A member can withdraw his PF amount (member share only) and maintain a lien in the Pension Scheme by availing a Scheme Certificate.
79 - Can I change my Date of Birth/Age?
Ans : Yes. Date of Birth/Age once given is not normally changed, however it can be changed with proper documentary evidence. You can see the guidelines provided in circular ‘Change of Date of Birth for EPF & EPS members’ dated 03/04/2020, available on our website (https://www.epfindia.gov.in/site_docs/PDFs/Circulars/Y20202021/Circular_on_date_of_Birth_0302020.pdf).
80 - Can a married daughter be excluded from receiving the family pension?
Ans : The marital status has no relevance if the children are below 25 years; they are eligible for family pension in the event of demise of the member.
Is there
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