The Employee Provident Fund (EPF) is an integral part of the financial landscape for working individuals in India. It serves as a critical retirement savings scheme administered by the Employees’ Provident Fund Organization (EPFO). In this article, we will explore the concept of EPFO, learn about salary deductions and interest rates and discuss four effective methods to check your EPF balance.
Understanding EPF and its importance
Employees Provident Fund is a government-mandated savings scheme aimed at securing the financial well-being of employees after retirement. Both employees and employers contribute to the EPFO account, from which a portion of the employee’s salary is deducted every month. The EPF balance accumulates over time and earns interest, serving as a reliable financial asset for the employee’s future.
Salary deduction for EPF
To ensure steady accumulation of funds in the EPFO account, a certain percentage of the employee’s salary is deducted every month. The current contribution rate is 12% of the employee’s basic pay and dearness allowance. This deduction is made from the salary of the employee, while an equal amount is contributed by the employer. It is important for employees to be aware of EPFO deductions to keep track of their contributions and overall EPFO balance.
EPF Interest Rates
EPF balance earns interest, which is declared by EPFO every year. Interest rates are determined based on the performance of EPFO investments and prevailing market conditions. Historically, EPFO has offered competitive interest rates compared to other avenues of investment. Employees can benefit from the power of compounding as the EPF balance grows with interest compounded over the years.
Checking EPF Balance: 4 Effective Methods
EPFO Portal: EPFO provides an online portal where employees can check their EPFO balance. Visit the EPFO website and navigate to the “For Employees” section. Select the “Member Passbook” option and enter your Universal Account Number (UAN) and password to access your EPF Passbook, which displays your EPF balance and transaction details.
EPFO Mobile App: Download the EPFO Mobile App, which is available for both Android and iOS devices. Log in using your UAN and password to view your EPF passbook and check your balance on the go. The mobile app provides a user-friendly interface and easy access to your EPF account information.
Missed Call Service: EPFO offers a convenient missed call service to employees to check their EPFO balance. Make sure your UAN is linked with your mobile number. From your registered mobile number, give a missed call to 011-22901406. You will receive an SMS with your EPFO balance details shortly.
SMS Service: Send SMS to 7738299899 from your registered mobile number. Message format should be “EPFOHO UAN ENG”. Replace “UAN” with your UAN number and “ENG” with the preferred language (ENG for English). You will receive an SMS with your EPF balance information.
Using these methods, employees can easily stay updated on their EPFO balance and track their savings progress.
Conclusion
Understanding the intricacies of EPF, including salary deductions, interest rates and methods of checking EPFO balance, is crucial for employees. EPFO serves as a valuable financial asset that helps build a secure future after retirement. By staying informed about their EPFO contributions and using available tools to check their balance, employees can take proactive steps towards financial planning and ensure a stable financial future.