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The Employees’ Provident Fund Organization (EPFO) is a statutory body established under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. EPFO manages the provision of social security benefits to employees working in India’s organized sector. It works under the purview of the Ministry of Labour and Employment, Government of India. In this article, we will discuss various aspects of EPFO, including its functions, benefits offered, and recent developments.
Functions of EPFO
EPFO performs the following functions:
- Provident fund: One of the primary functions of EPFO is to administer and manage the Employees’ Provident Fund (EPF) scheme, which is a retirement savings scheme for employees. Under this scheme, both the employee and the employer contribute a percentage of the employee’s salary every month towards the EPF account. The amount accumulated in the EPF account can be withdrawn by the employee at the time of retirement or resignation.
- Pension: EPFO also manages the Employees’ Pension Scheme (EPS), which provides a pension to employees who have completed ten years of service. The employer contributes 8.33% of the employee’s basic salary towards EPS, and the government pays an additional 1.16% contribution.
- Insurance: EPFO administers the Employees’ Deposit Linked Insurance (EDLI) scheme, which provides life insurance coverage to EPF members. The scheme covers natural death, death due to accidents, and disability.
- Online services: EPFO has introduced online services like UAN (Universal Account Number) and ECR (Electronic Challan cum Return) to make the process of managing PF accounts more accessible and transparent for employees.
Benefits offered by EPFO
EPFO offers several benefits to employees:
- Retirement savings: EPF scheme helps employees save money for their retirement.
- Pension: EPS provides a pension to employees after they retire.
- Life insurance: EDLI provides life insurance coverage to EPF members.
- Illness and disability benefits: EPFO also provides medical benefits and disability pension to employees who are unable to work due to illness or disability.
Recent developments
EPFO has made several recent developments to improve its services:
- Online services: EPFO has introduced online services like UAN and ECR to make the process of managing PF accounts more accessible and transparent for employees.
- Simplification of rules: EPFO has simplified the rules governing the withdrawal of funds from the EPF account, making it easier for employees to withdraw their money when they need it.
- Increase in interest rates: EPFO has increased the interest rate on EPF deposits, which will benefit millions of employees across the country.
Conclusion
which help employees save money for their retirement, provide them with a pension after retirement, and give them life insurance coverage. The recent developments made by EPFO, like the introduction of online services, simplification
