EPF (Employee Provident Fund) is a mandatory government scheme for all private and government sector employees. It has two components,
- employee contribution, 12% of his Basic + Dearance Allowance (DA) salary
- employer contribution, same 12% but divided into:
- EPS: 8.33% of 15000 = 1250
- EPF: remaining amount
EPS is available as a pension after age of 58 years. It requires at least 10 years of service. EPF on the other hand can be withdrawn completely in one of these scenarios:
- No job
- After 2 months: 75% of the corpus can be withdrawn
- After 12 months: remaining 25%
- It'll be linked with UPI, can be withdrawn like a normal bank account (what caps? #question)
There's an additional component in EPF, EDLI, this is a term insurance for employee, paid for by employer. In case of death, at maximum of 7.5L can be availed.
Interest
Rate of interest hovers around 8%.
UAN, PF transfer
Each user has unique UAN number linked to PAN. On changing organisation, UAN remains same, but you get new PF number. And you've to transfer your amount from old to new PF account. Ensure your Date of Exit (DOE) is marked by previous employer. And that it doesn't overlap with Date of Joining (DOJ) at the new organisation.
Sources
- https://youtu.be/y0OhXSjcbkI?si=_C8tQRymXuskPaME