A government-managed savings plan known as an Employee Provident Fund (EPF) or Provident Fund (PF) is available to all salaried employees who work for a company with 20 or more employees. All employers must contribute a part of their employee’s salaries to India’s Employee Provident Fund Organization, or EPFO. Employers must also contribute to the provident fund a number of their earnings. The primary goal of the EPF system is to ensure that when an employee retires or becomes unable to work for any reason, they would have enough money to live comfortably.
Despite the monthly deductions from salaries, employees are frequently unaware of how to monitor their PF balance once they start contributing. The Employees’ Provident Fund Organisation provides four methods for checking one’s PF balance.
Here’s how to find out what your PF balance is:
- By SMS
To use this service, one’s UAN (Universal Account Number) must be linked to their phone number. From your registered cellphone number, send the text message ‘EPFOHO UAN ENG’ to 7738299899. After the SMS has been successfully delivered, you will receive an SMS with information on your PF account, including your PF account balance.
The last three alphabets of your message indicate your preferred language.
- Missed Call
If your UAN (Universal Account Number) is linked to your KYC information, you can use this service. Make a missed call from your registered phone number to 011-22901406. You’ll receive an SMS with all of the information regarding your PF balance and contribution details after making the missed call.
- Via Umang app
Umang is a smartphone application available on Google Play and Apple App Stores. Open the app after installing it and select the ‘EPFO’ option. Then select ‘Employee Centric Services’ from the drop-down menu. Go to ‘View Passbook’ and click it to view your EPF balance. Enter your UAN and then press the ‘Get OTP’ button. Once you’ve received the OTP, click the ‘Login’ button. Then select the company’s member ID for which you wish to view the EPF balance. Finally, your passbook and EPF balance will appear on your smartphone screen.
To begin, go to EPFO’s official website at https://www.epfindia.gov.in/ and select ‘For Employees’ from the ‘Our Services’ drop-down menu. Select the ‘Member Passbook’ option from the ‘Services’ menu. You will be asked to enter your UAN and password. After completing the form, a new page will appear, providing your EPF account statement.
Benefits of PF
- Loan against PF: If a financial emergency arises, a PF account holder can take a loan against their PF balance, with an interest rate of only 1%. The loan must be repaid within 36 months of disbursement.
- Free insurance: Under the EDLI programme, a PF account holder is automatically eligible for free insurance up to Rs 7 lakh in the event of death during the service period. The death cover was formerly Rs 6 lakh. The EDLI programme eliminates the requirement for the PF account holder to pay an insurance premium for death coverage.
- Pension provision: After 58 years, a PF account holder is also eligible for a pension. To qualify for the pension, however, one must have made regular monthly PF contributions for 15 years. The employer contributes 8.33 percent of its contribution (out of a total of 12 per cent) to the EPS account of the PF account holder, which provides the pension benefit.
PF is a great investment option that allows you to save money and get ta deductions, and also, it is one of the investment options whose interest is not taxable. PF, however, has a long lock-in period in which one cannot withdraw the deposited amount.
Suppose you are looking for a more liquid investment option. In that case, Bajaj Finance Fixed Deposit is a profitable option that provides fd interest rates up to 7.45% p.a. Along with this, some other benefits of the fixed deposit are:
- Completely online process
- The minimum deposit starts at Rs. 15,000
- Option to withdraw funds before completion of a tenor.
- 0.25% p.a. extra benefit on interest rates to senior citizens.