The Employees' Provident Funds and Miscellaneous Provisions Act of 1952 designates the Employees' Provident Fund Scheme (EPF) as the principal scheme. The Employees' Provident Fund Organisation administers it (EPFO).
The Employees’ Provident Fund Organisation (EPFO) holds a pivotal role as a primary social security organisation within the Ministry of Labour and Employment under the Government of India. Tasked with overseeing and regulating provident funds in the country, the EPFO manages crucial initiatives, including the mandatory provident fund, a fundamental pension scheme, and disability/death insurance programs. Additionally, it facilitates social security agreements with foreign nations, extending coverage to international workers in countries with established bilateral agreements. It applies to all establishments with 20 or more employees, as well as to certain organisations with less than 20 employees, subject to specified restrictions and exclusions. Let’s see the detail about EPFO Member Passbook.
EPFO Member Passbook
The EPF passbook is a document that lists all employee and employer contributions to the EPF and EPS accounts. Calculate PF amount easily, In the EPF passbook, all monthly contributions and accumulated interest on the beneficiary’s account are detailed. Notably, if you have numerous EPF accounts, you will have different passbooks for each account, which may be accessed after entering in with the respective member ID. To access your EPF member passbook, you must register your UAN (Universal Account Number) on the official EPFO website – https://www.epfindia.gov.in/
Important Information on the EPF Plan and How to Calculate the PF Balance
The EPF program requires both the employee and employer to contribute a specific amount to the scheme. Upon retirement, the retiree receives a lump-sum payment that includes both the employee and employer contributions along with interest.
If a new employee earns a monthly income exceeding ₹15,000, they are not eligible for enrollment in the Employees’ Provident Fund (EPF). However, it is mandatory for employees earning less than ₹15,000 per pay period to enroll in the EPF. If an employee’s compensation exceeds ₹15,000, they may still join the PF with permission from the Assistant Commissioner of Pensions and the consent of their company.
How to Calculate Total PF Amount in EPFO Member Passbook?
Curious about how to determine your provident fund (PF) balance accurately? Your PF passbook holds the key, showcasing both employer and employee contributions. Here’s a step-by-step guide on how to calculate the total PF amount from your EPFO Member Passbook.
Understanding Contribution Breakdown
Before diving into the calculation process, it’s crucial to grasp the contribution dynamics. Employers contribute 12% of your pay, while employees contribute 3.67%. The calculation hinges on your basic pay, influencing whether the employer’s 12% is based on your gross salary or basic pay.
EPFO Website Method
- Step 1: Head to the EPFO website and locate the ‘Member Passbook’ section for employees.
- Step 2: Enter your Universal Account Number (UAN) and password to access your PF passbook.
- Step 3: The passbook not only displays opening and closing balances but also breaks down contributions by both employee and employer. It includes details on PF transfers and any accumulated PF interest.
- Step 4: If your UAN is associated with multiple PF numbers, all will be visible. Click on the relevant member ID to view the balance of a specific PF account.
Unified Portal Method
- Step 1: Access the Unified Portal by logging in with your UAN and password.
- Step 2: Open the PF passbook, where you’ll find contributions for various fiscal years, providing a comprehensive overview.
Simplified Calculation Steps
Whichever method you choose, the steps remain straightforward:
- Step 1: Grasp the employer and employee contribution dynamics.
- Step 2: Log in either to the EPFO website or the Unified Portal.
- Step 3: Access the PF passbook for a detailed breakdown of your contributions.
- Step 4: Mastering how to calculate the total PF amount from your passbook empowers you to monitor your financial growth. Take control of your PF calculations effortlessly with these user-friendly methods.
Establishment Identifier and Company Name
The EPFO member passbook includes the establishment ID, which is a seven-digit number (the first two digits are typically zeroes) assigned to every company covered by the EPF system 1952. It also includes the employee’s current place of employment.
- Member ID and name of the member (Employee)
- The passbook also contains the employee’s name and member identification number. In order for employers to make EPF and EPS contributions on behalf of their employees, EPFO issues the Member ID.
- Members who have multiple EPF accounts will have separate passbooks; they can be accessed by logging in with each account’s member ID
Contributions to the Trust Fund From Both Employees and Employers
- An employee and employer contribution breakdown is included on the EPFO member passbook.
- The portion that contributes to EPS is also displayed separately.
According to this table, subscribers should keep in mind that although employees and employers each contribute 12%, their contributions are not identical. In part, this is because not all of the employer’s EPF contribution is placed into the account. A portion of the employer’s payment is redirected to EPS.
EPF Member Passbook: Interest Acquired
Employee and employer contributions earn interest once a year, which is deposited into the PF account. The interest earned is determined based on the account’s monthly balance. The PF statement includes the government-declared interest rate upon which the computations are based.
The EPFO had declared a rate of 8.5% for the 2019-2020 fiscal year. This is the lowest rate of interest in the previous seven years. In 2018-2019, the interest rate was 8.65%, compared to 8.55% in 2017-2018.
Use Vakilsearch’s PF Interest Calculator to find out how much money will be in your EPF account when you retire.
Contribution Made by Both the Employer and Employee
The employer contribution is equal to 12% of basic salaries + dearness allowance plus retention allowance. Similarly, the employee must likewise contribute. EPF regulations limit employee and employer contributions to a combined 10% for enterprises with fewer than 20 employees or that meet other criteria.
- The majority of private sector employees are required to contribute a portion of their salary to their retirement plan. For instance, if the monthly basic income is ₹ 30,000, the employee contribution to EPF would be ₹3,600 (12% of basic pay) and the employer contribution would be ₹3,600 each month
- However, it should be noted that not all of the employer’s contribution to the EPF fund is accounted for in the EPFO
- 8.33% of employer contributions would be allocated to the Employees’ Pension Scheme, based on ₹15,000
- Therefore, for each employee with a basic wage of ₹15,000 or above, the monthly EPS contribution is ₹1,250
- If the base wage is less than ₹15000, 8.33% of the entire amount would be contributed to EPS. The remaining balance will remain in the EPF plan.
- At retirement, the employee will receive his entire portion in addition to the Employer’s share remaining in his EPF account.
Greater Employee or VPF Contribution to the Voluntary Provident Fund
The employee may voluntarily pay a higher contribution rate than the required 12% of base pay. This is a donation to the Voluntary Provident Fund (VPF), which is separately accounted for. In addition, the interest earned by this VPF is exempt from federal income tax. However, the employer is not obligated to match these contributions.
EPFO Member Passbook: Estimation of EPF
Employee Provident fund registration interest is determined based on both employee and company contributions. 12% of basic pay plus depreciation allowance is the employee’s contribution (DA). The employee contribution is 12% of Basic Pay plus Dearness Allowance, while the employer contribution is 3.67% of Basic Pay plus Dearness Allowance when the Basic Pay plus Dearness Allowance is less than or equal to ₹15000.
Employer 12% Contribution is typically distributed as follows:
- 3.67% into Employee Provident fund
- 8.33% into the Employees’ pension plan
- 0.5% to the Employees’ Deposit-Linked Insurance Scheme (EDLIS)
- 0.01% is allocated to EDLIS Administrative Fees
- If the employee’s annual salary is less than or equal to ₹15,000/- (Compulsory)
- ₹15,000 for employees’ basic pay and DA
- Employee contribution to EPF: 12% x ₹15000 = ₹ 1,800 (Check Calculate PF Amount in Member Passbook )
- Employer contributions of 12% will be allocated as follows: 8.33% to the Employee pension scheme and the remaining 3.67% to the Employee Provident fund
- However, the employer’s contribution to the provident fund is ₹15,000 multiplied by 3.67%, or ₹550.5
- The remaining 8.33% contribution to the Employee pension scheme (EPS) is ₹1,249.5
- if the employee’s annual salary is greater than ₹15,000 (Exempted but Voluntary)
How to Download EPFO Member Passbook Online?
- Step 1: Visit EPFO’s official website
- Step 2: Navigate to the ‘Our Services’ section and select ‘For Employees’
- Step 3: Choose the ‘Member Passbook’ option
- Step 4: Log in using your UAN and password from the EPF member portal
- Step 5: The page will list all member IDs associated with your UAN
- Step 6: Select your EPF account by clicking ‘Select Member ID’
- Step 7: Access your EPF Passbook by clicking ‘View Passbook’
- Step 8: Your EPF Passbook will open in PDF format in a new tab
- Step 9: Download your EPF Passbook by clicking ‘Download Passbook.’
Benefits of EPFO E-Passbook
The EPFO Member Passbook offers a convenient and accessible way for employees to track and manage their provident fund contributions, providing transparency and real-time updates on account transactions. Here are some of the benefits of EPF passbooks:
Immediate Updates
It provides real-time updates on EPF transactions, covering contributions, withdrawals, and balances, ensuring transparency.
Less Reliance on Paper
Decreases dependence on physical documentation, advocating a paperless approach and supporting environmental sustainability.
Intuitive Interface
The e-passbook features a user-friendly design, simplifying navigation and comprehension of financial transactions for individuals
Historical Data Access
Grants access to past data, enabling employees to monitor EPF contributions across different employment periods
Time and Effort Saving
Removes the necessity to visit EPFO offices or contact employers for PF details, saving time and effort for both employees and employers.
Conclusion
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FAQs
What information is available in the PF Member Passbook, and how is the PF amount calculated?
The PF Member Passbook details contributions from both employer and employee, showcasing opening and closing balances. The PF amount is calculated based on the employee's 3.67% and employer's 12% contributions, influenced by the basic pay.
Are the contributions from both the employer and employee reflected in the PF Member Passbook?
Yes, both employer and employee contributions are transparently reflected in the PF Member Passbook, providing a comprehensive breakdown of financial transactions.
How often is the PF Member Passbook updated, and what is the timeline for the calculation of PF contributions?
The PF Member Passbook is regularly updated, usually on a monthly basis. The timeline for PF contribution calculations aligns with this update frequency, ensuring accurate and up-to-date information.
Can I use the PF Member Passbook to track my monthly contributions and withdrawals accurately?
Absolutely. The PF Member Passbook serves as a reliable tool for accurately tracking monthly contributions and withdrawals, offering transparency and accountability.
What are the key components considered in the calculation of PF amount, and how are they documented in the passbook?
The calculation considers components like the 12% employer and 3.67% employee contributions, influenced by the employee's basic pay. The passbook meticulously documents these details, providing a clear financial snapshot.
Are there any online tools or calculators available to help me estimate my PF amount based on the details in the Member Passbook?
Yes you can use Vakilsearch free online PF calculator to calculate using PF Member Passbook itself. It provides a detailed breakdown of contributions, ensuring precision in calculations.
In case of discrepancies or errors in the PF Member Passbook, what steps should I take to rectify them?
To rectify discrepancies or errors in the PF Member Passbook, promptly contact the EPFO. They will guide you through the necessary steps to correct inaccuracies and ensure your financial records are accurate.
How does the calculation of PF amount differ for employees working in different sectors or under various provident fund schemes?
The calculation of PF amounts remains consistent across sectors and schemes, primarily considering the 12% employer and 3.67% employee contributions. However, specific rules may vary, necessitating careful consideration of individual provident fund schemes.
Can I use the PF Member Passbook as an official document for PF-related transactions and claims?
Yes, the PF Member Passbook serves as an official document for PF-related transactions and claims. It provides a comprehensive record of contributions, withdrawals, and balances, ensuring credibility in official dealings.
Is there a specific formula or method used for the calculation of interest on the PF amount, and where can I find details about the interest accrued in the Member Passbook?
The interest on PF amounts is calculated using the following formula: Interest = (R/12) * M, with R representing the PF interest rate and M denoting the monthly closing balance. The details about interest accrued are available in the EPFO Member Passbook, providing transparency about the interest calculations over time.
