Today, in this article, we will learn about what is Employee Provident Fund ie EPF and how to open EPF account. Also, apart from government employees, who and how can open PF account, you will also know.
What is EPF? And how to open PF account?
- Many people do not know completely about what is EPF. So let me tell them that EPF is such a government investment scheme that provides relief from many financial problems during the old age of the person.
- This is known as Employee Provident Fund account. For information, let me tell you that there are more than 4 crore EPF account holders in our country, who are investing in this investment scheme.
- This account is available for every salaried employee, whether he is a government employee or a non-government employee, it does not matter. Because according to government rules, it is mandatory to register in EPFO (Employees Provident Fund Organization) a company or organization in which more than 20 employees work.
- If you work in such a company or organization, where more than 20 employees are employed, but still you are not given this account, then you can talk to your company for this.
- Friends, many of us remain confused in EPF and PF, so for their information, let me tell you that both are the same. Many names have been given to this investment plan. Like- PF, EPF, Employee Provident Fund, Employees Provident Fund, etc.
How does EPFO work?
- If you are planning to save for your future while doing a job, then let me tell you that no one is better than the Employees’ Provident Fund Scheme. Not only do you get a good interest rate in this investment plan, but you also get tax exemption in this.
- In whichever EPFO registered company you work, your PF account is opened by that company. After that every month 12 percent of your salary is invested in “Employee Provident Fund Scheme” ie EPF scheme, which is very beneficial for your future.
- Friends, the main objective of this investment scheme is to improve the future of the employees. This plan proves to be very helpful for planning their own life after retirement.
- Now you must be thinking that only 12 percent of your salary is deducted as PF, so is this amount enough to plan life after retirement – Let us understand this scheme better i.e. PF Know in detail about what are the benefits.
What are the benefits of PF?
- There are many benefits of opening an Employees’ Provident Fund account or PF account, and it is very important for a PF account holder to be aware of all these benefits.
- As you must have read above that 12 percent of your salary is deposited in your PF account, exactly the same amount, that is, 12 percent amount is also deposited in your PF account on behalf of your company.
- Which is 24 percent in total, and this entire amount is completely tax free, and you also get more than 8 percent interest by the government on this amount.
- Not only this, when your PF account is opened, then you get insurance up to Rs.6 lakh under EDLI i.e. Employee deposit linked insurance scheme.
- If a person’s service history becomes 10 years, then he becomes entitled for pension, that is, on attaining the age of 58 years, that person can get some salary in the form of pension.
- Fund deposited in PF account in emergency cannot be withdrawn easily. For example, in medical emergency, for your child, brother / sister or for your marriage, for higher education of yourself or children, to buy a house or land.
- Now EPFO has issued a UAN number i.e. Universal Account Number for PF account holders, through this number you can handle your PF account online. like-
How to Open PF Account? and eligibility for
- To open a PF account, you have to join any such company or organization which is registered under EPFO.
- Usually, the company or organization in which more than 20 employees work, that company or organization remains registered under EPFO, you can join such company or organization.
- PF account can be opened for employees working in government or private company or organization.
- You cannot open your PF account yourself, because the employee’s PF account is opened by his company.
What is the difference between PF and PPF?
- To open a PF account, it is necessary to be employed. While it is not necessary to be employed to open a PPF account.
- You cannot open your PF account yourself, your company opens it. Whereas you can open PPF account yourself.
- The amount deposited in both the accounts is tax free, as well as the interest and maturity money received on it is not taxed.
- You can withdraw money from PF account when needed, in the same way, you can also withdraw money from PPF account in some circumstances.
What is UAN Number? And how to get it?
UAN means Universal Account Number. This is such a 12 digit number, through which you can do many things related to PF account. And it is given by EPFO to PF account holders.
With the help of UAN number, you can do PF detail correction (Name, Surname, Address, Dob, Mobile no. Email, Aadhar no.), Online PF balance check, Online PF withdrawal, Online, PF fund Can transfer, can merge multiple PF accounts in one.
