A provident fund in simple words means an amount of investment fund contributed to by employees and employers of an organization. The amount is then provided to each employee on their retirement.
In India, the Employees’ Provident fund is managed by the Employees’ Provident Fund Organization (EPFO). It is volume wise one of the largest provident fund institutions in the world. The Republic of India witnessed the emergence of Employees’ provident Fund Ordinance on the 15th November, 1951. In the following year it was superseded by the Employees’ Provident Funds Act 1952. The Act was passed following the Employees’ Provident Funds Bill put forward in the Parliament in 1952 in order to found an institution of provident funds for employees in factories and other organizational establishments.
All workers whose remunerations surpass Rs.6, 500 per month get an option to join the scheme with the approval of the employer. The employee is entitled to membership of EPF from the day he joins a company which abides by the legalities of the EPF and MP Act, 1952. 12% is the rate of contribution to be paid by the employees; it entails basic pay, dearness allowance, cash value of food concession and retaining of allowance up to a maximum of Rs.6, 500 per month. Voluntary contributions are also adequate at the joint request of the member and the employer.
The employee must announce his before employment details in Form No.2 which includes the family and nominations through the employer and the employer submits the same to EPFO.
The employee can suggest any one or more members of his family to receive the Provident Fund in case of his demise. Also, he in case has no family then anyone can be his nominee. The nomination can be changed by the employee whenever he wishes to do so but his request for the change must fall in line with the terms, conditions and rules of the EPFO.
If you are one of those applying for the withdrawal of EPF Fund, you can check your status online. You can go to the EPE Claim Status page of PEF member. www.epfindia.com/ClaimStatus_New.html. All you have to do is fill in the given form with all the details of your EPF office and EP Account number.
You can take out up to 90% of the amount in you EPF account after you reach the age of 54 years, or within a year previous to the actual retirement on superannuation, whichever is later. PF claim application form 19 has to be sent to the concerned Provident Fund Office.