(EPFO Employees Updates) : The Employees’ Provident Fund Organisation (EPFO) has introduced a major benefit for employees earning a monthly salary of ₹15,000. This initiative aims to enhance financial security and retirement savings, providing direct advantages to eligible employees. If you are an EPFO subscriber or planning to enroll, this news could be a game-changer for your future financial stability.
Let’s dive into the details of this significant benefit and how it impacts employees.
What Is EPFO and Why Is It Important?
The Employees’ Provident Fund Organisation (EPFO) is a statutory body under the Ministry of Labour and Employment, Government of India. It manages the Employees’ Provident Fund (EPF), a social security scheme designed to provide financial assistance post-retirement.
Key Functions of EPFO:
- Managing retirement funds for salaried employees.
- Ensuring financial security through employer-employee contributions.
- Offering additional benefits such as pension and insurance coverage.
EPFO plays a crucial role in ensuring financial well-being, especially for individuals in the lower and middle-income brackets.
What Is the New Benefit for ₹15,000 Salary Earners?
Employees earning a basic salary of ₹15,000 per month or less are now eligible for direct EPFO benefits. This initiative helps ensure that a substantial portion of their income is set aside for the future, providing financial security post-retirement.
Key Features of the Benefit:
- Higher Employer Contribution – Employers continue to contribute 12% of the basic salary towards EPF.
- Government Support – Employees may receive government backing in certain cases under the Employees’ Pension Scheme (EPS).
- Lifelong Pension – Eligible employees get access to a pension scheme that provides income security after retirement.
- Tax Benefits – Contributions to EPF accounts offer tax exemptions under Section 80C of the Income Tax Act.
How Does the EPF Contribution Work?
Understanding how EPFO contributions work is essential for maximizing benefits. Here’s a breakdown:
| Contribution Type | Employee Share | Employer Share | Total Contribution |
|---|---|---|---|
| Provident Fund (PF) | 12% of ₹15,000 | 3.67% of ₹15,000 | ₹2,346 |
| Pension Scheme (EPS) | – | 8.33% of ₹15,000 | ₹1,250 |
| Total Contribution | ₹1,800 | ₹1,800 | ₹3,600 |
Key Takeaways:
- Employees contribute 12% of their basic salary.
- Employers contribute 3.67% towards PF and 8.33% towards EPS.
- The total contribution ensures a secure retirement corpus.
Additional Benefits of Being an EPFO Subscriber
Apart from retirement savings, EPFO members enjoy various additional perks:
1. Pension After Retirement
- Under the Employees’ Pension Scheme (EPS), employees receive a monthly pension post-retirement.
- The pension amount depends on the total years of service and average salary.
2. Provident Fund Withdrawal Benefits
- Employees can withdraw their EPF corpus under special circumstances, such as:
- Medical emergencies
- Buying or constructing a house
- Higher education of children
- Partial withdrawals are allowed under specific conditions.
3. Insurance Benefits (EDLI Scheme)
- The Employees’ Deposit Linked Insurance (EDLI) Scheme provides life insurance coverage to EPF members.
- In case of an employee’s untimely demise, their nominee receives financial assistance.
4. Interest on EPF Balance
- EPFO announces an annual interest rate on provident fund deposits.
- The interest is compounded annually, ensuring significant growth in savings.
See More : Major Pension Rule Changes from February 1, 2025
Eligibility Criteria for EPFO Benefits
To avail of the benefits, employees must meet specific eligibility requirements:
| Criteria | Details |
|---|---|
| Minimum Salary Limit | ₹15,000 per month or less |
| Employment Type | Salaried employee in an organization registered under EPFO |
| EPF Contribution | Both employer and employee must contribute 12% each |
| Minimum Service Period | At least 10 years of service for pension benefits |
| UAN Activation | Employee must have a Universal Account Number (UAN) |
By meeting these conditions, employees can maximize their EPF benefits and secure their financial future.
How to Check Your EPF Balance?
EPFO offers multiple ways for employees to check their EPF balance and contributions:
1. Via the EPFO Portal
- Visit epfindia.gov.in
- Click on ‘For Employees’ → ‘Member Passbook’
- Login with UAN and password to check balance.
2. Via UMANG App
- Download the UMANG App from the Play Store/App Store.
- Select EPFO Services → ‘View Passbook’
- Login using UAN and OTP.
3. Via SMS
- Send an SMS “EPFOHO UAN ENG” to 7738299899 from your registered mobile number.
4. Via Missed Call
- Give a missed call to 9966044425 from your registered number.
- You will receive an SMS with your latest EPF balance.
Impact of This Benefit on Employees
The latest EPFO benefit provides significant advantages to employees in the ₹15,000 salary bracket. Here’s how it helps:
- Ensures long-term savings – Employees build a substantial retirement fund over time.
- Provides financial security – A guaranteed pension post-retirement ensures peace of mind.
- Government support – Eligible employees may receive government backing under EPS.
- Tax savings – EPF contributions offer tax benefits under Section 80C.
This scheme is particularly beneficial for low and middle-income employees, offering them a safe and secure retirement plan.
Conclusion
The EPFO benefit for ₹15,000 salary earners is a game-changer for employees aiming for long-term financial stability. With employer contributions, government backing, and interest earnings, the EPF scheme is a must-have retirement tool.
If you are an EPFO member, ensure that you keep track of your balance, activate your UAN, and understand withdrawal rules. These simple steps will help you maximize your benefits and secure your future.
EPFO / EPPS -The worst ever savings for future, for so called private limited employees of PSUs. You only get peanuts as retirement benefits while EPFO employees, being also a GoI organization, enjoy hefty pension. Government is hand-in-gloves with EPFO.