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Yogi Zone

Useful articles for your finance management by our team of experts

How to Check EPF Balance Online with E-Passbook

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What is EPF?

epfbalanceEmployee Provident Fund (EPF) is a retirement benefit scheme that is available to the salaried employees. The benefits of EPF scheme is available to people employing at least 20 people. Under EPF, all employees working in an organisation contribute 12% percent of amount from basic salary towards this scheme. In EPF, equivalent amount is also contributed by employers. It is maintained for securing post retirement period, any disability, sickness or unemployment to employees.

Recently, we did a survey among one thousand people in different age groups across India to know their knowledge on this EPF scheme. The results were surprising that most people lack basic knowledge about this scheme, its importance, steps to check e-passbook facility, etc. In this article, we will burst some myths with facts about EPF scheme to our readers.

Myth 1

We can have as many EPF accounts we require, no need to transfer accumulated corpus from last jobs to current employer while switching jobs.

Fact 1

It’s recommended you transfer your EPF amount to current employer while switching jobs. Dormant accounts don’t earn interest. So, having 3 to 4 EPF accounts with different employers is not rewarding.

Myth 2

An employee can contribute 10% or 15% of the basic salary to EPF per month.

Fact 2

An employee can contribute 12% of basic salary and dearness allowance towards EPF scheme. An employer also contributes equivalent amount to this scheme. However, an employee and employer can voluntarily increase the percentage contribution towards the EPF scheme reducing your take home salary.

Myth 3

In my survey, some people said interest earned is equivalent to public provident fund where as, most people said it’s either 7.5% or 9.5% pa.

Fact 3

Interest you earn on EPF savings is 8.5% p.a.

Myth 4

In a survey, I asked people, do you believe, “Savings in EPF scheme can make you Crorepati?” Response was 80% people said it’s not possible to become a crorepati by savings in this EPF scheme.

Fact 4

You can easily accumulate one crore if you have started working at the age of 25 years in your career and can create corpus of Rs 1.8 crore if retirement age is kept as 60 years. Some other parameters considered in this calculation are as follows:

-          Assume basic salary: Rs 30, 000 per month

-          12% contribution towards EPF of basic salary from employee and employer respectively: Rs 7,200 per month

-          Interest earned on EPF scheme: 8.5% p.a

Table given below shows calculation of savings upto Rs 1.80 crore at the age of your retirement assuming your basic salary and interest earned on EPF scheme remains constant in all this years.

Age (in Years)

Basic Salary (Rs pm)

Total EPF contribution (Rs pm)

Total EPF contribution (Rs p.a.)

Interest earned on EPF amt (Rsp.a)

Total Amount    = EPF + interest earned (Rsp.a) 

26

30,000

7,200

86,400

7,344

93,744

35

30,000

7,200

12,81,753

1,08,949

13,90,702

45

30,000

7,200

41,79,774

3,55,281

45,35,055

54

30,000

7,200

98,11,753

8,33,999

106,45,752

60

30,000

7,200

166,49,425

14,15,201

180,64,626

 

Most people believes every year interest will be earned on savings of Rs 86,400 which is just another myth. Actually, next year you will be earning interest on current year savings and previous year total EPF amount i.e. compounding effect in your EPF investments leads to corpus of a crore at age of 54 years and Rs 1.8 crore by retirement age of 60 years.

Myth 5

Close to 50% people in my survey didn’t believe now they can check their EPF statement online. Most people who had read about it had not tried to get e-passbook facility. Since, they thought the process to get account statement is tedious and long.

Fact 5

The process to register for e-passbook facility is easy. You will able to track your EPF savings and view epf balance online within 15 minutes after registration process.

Explained below are steps you need to follow for registration and to get e-passbook facility in your EPF account:

Step 1: Visit the website given: http://members.epfoservices.in/

Step 2: Register your mobile number and register any of the identification proof number such as PAN, AADHAR, bank account, voter ID, passport or driving license to register and thereafter to login.

Step 3: Add your name, date of birth and EPF account number. Then click on “Get Pin”

Step 4: You will receive a PIN on registered mobile number

Step 5: Now, you can login with your identity proof, mobile number and PIN received on SMS

Step 6: Click on “download e-passbook”

Step 7: Select the state where your establishment is covered

Step 8: Select your EPFO office

Step 9: Mention your company PF code, employee P/F account number and employee name

Step 10: Click on Get Pin. You will receive SMS with PIN number. Use this PIN for login to your EPF account. *Note: Don’t close the browsing window until you have inserted the PIN generated for login

Step 11: You will get to see your EPF statement immediately after login if it’s available on portal, otherwise wait for 3 working days to get an update in your email.

Step 12: The EPF statement will be in pdf format which can be downloaded and saved from time to time. Keep a track of balance / transaction in this statement.

Who can avail e-passbook facility?

E-passbook facility is available to employees who have quit the service or retired from the job before March 2012 and have registered on EPFO link by following procedure discussed above.

Benefits of e-passbook facility are as follows:

-          Check EPF account balance online

-          Keep a track of transactions

-          Download the e-passbook multiple times in a month and consider accumulated corpus in retirement planning

-          View transaction history online (deposit, withdrawal, interest earned, etc)

Important points to remember

-          Transfer your EPF account to new employer while switching jobs. Don’t keep dormant accounts with the organisations you have worked in the past.

-          Contributions made by employee towards EPF are tax exempt under section 80C up to a maximum limit of Rs 1 lakh.

-          Interest credited on EPF account is tax free under section 10(12).

-          An employee can nominate one or more members of his family to receive the EPF proceeds in case of his sudden death.

How to read EPF account balance from e-passbook?

EPF statement has information on your opening balance, interest income, contributions, withdrawals and closing balance.

  • Opening balance: Amount accumulated in the account from the beginning. Amount is bifurcated into two categories i.e. employees and employers contribution
  • Interest: Interest earned during the financial year
  • Contributions: It gives information on amount contributed by employee and employer to EPF scheme in the financial year
  • Withdrawals: Provides information on any withdrawal or advances you did from EPF account in the financial year
  • Closing balance: It’s derived by summation of opening balance plus interest accrued on the opening balance and contributions from employee and employer during a financial year. This closing balance becomes an opening balance for next financial year while calculating EPF statement.

Conclusion

We wish this article has resolved some myths you had on EPF account. Now, register yourself on EPF portal and track your transactions regularly. Start creating a corpus for retirement through EPF scheme by small deductions from salary at an early age. This accumulated amount will secure your post retirement period.

About the Author:

Abhishek Jaju is MBA (Finance) graduate and equity analyst with an experience of over 6 years in personal finance domain. He can be reached at expert@investmentyogi.com

  • Yogi Cfp

    Q.What is the procedure to recover the money from my dormant EPF accounts which are more than three years old to my current EPF account.
    A. You have two options in this case – 1) Transfer the amount to new epf account or 2) withdraw the amount from the old account. You can approach your employer to know the process for any of these.

  • Anil Kishore

    Online checking does not work and nobody replies mail sent to them

    • Yogi Cfp

      There seem to be a few issues with EPFO. Service is definitely one of them.

  • Vamsi

    It works.. Very nice content. Thanks :)

    • Yogi Cfp

      Thank you Vamsi.

  • Molli

    Can any body tell me about how to cancel EPF account without transferring & how to cancel without approaching the previous company?

    • Yogi Cfp

      You can withdraw the EPF money by submitting the appropriate forms for the EPFO office.

  • Venkat

    Please confirm the following.

    “Interest credited on EPF account is tax free under section 10(12).”

    The interest is tax free or it is not considered as income in that particular year of credit?

    • Yogi Cfp

      The interest on EPF is tax free. However, if you withdraw the EPF amount within 5 years of service, the claimed amount of tax will be added back to your income and taxed.

  • ABHISHEK

    IS THERE ANY FACILITY AVAILABLE FOR PPF ACCOUNT?

    • Av Suresh

      Yes, Abhishek. You can open PPF account with nationalized banks. They offer facility to operate it online. You can check balance, view transactions, etc.

  • Manjari Chauduri

    I tried to download e-statement from the portal, but saying wrong account….but I am following the account number mentioned in the yearly PF statement issued by Regional PF Commissioner, Maharashtra. How can I download my e-statement?

  • Zipper -FREE IOS App

    Woh!!.. You simply answered most of the Myth and with precise answers!!.. Thanks a lot!

  • Yogi

    Hi Hiral……I was contributing to EPF till 2010 after which I relocated abroad. Is it better not to withdraw the PF amount incase If I come back to India after few years and start working there?? Or is it better to Withdraw the PF money? Which is the better option pls advise. Thx.

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