Employees’ Provident Fund Organisation

Employees’ Provident Fund Organisation (EPFO)

#GS 02 Social Security

For Prelims

Employees’ Provident Fund Organisation (EPFO)

  • Employees’ Provident Fund Organisation (EPFO) is a statutory body established under Employee Provident Fund and Miscellaneous Provision Act, 1952.
  • Its aim is to provide social security to workers working throughout India.
  • EPFO works under the administrative control of the Ministry of Labour and Employment, Government of India.
  • It is one of the world’s largest Social Security Organisations in terms of number of clients and the volume of financial transactions undertaken.

Schemes of EPFO:

EPFO Scheme 1952

Salient features of PFO scheme:

  • Accumulation plus interest upon retirement or death
  • Partial withdrawals allowed for the purpose of education, marriage, house construction or illness.
  • Housing scheme for EPFO members in order to achieve the Prime Minister’s vision of Housing for all by 2022.
Pension Scheme 1995 (EPS)

Salient features of the Pension Scheme

  • The monthly pensions for superannuation, disability, survivor, widow(er) and children.
  • Minimum pension for disablement.
  • Past service benefit given to participants of the erstwhile Family Pension Scheme, 1971.
Insurance Scheme 1976 (EDLI)

Salient features of the scheme

  • The insurance provided in case of the death of an employee who was a member of the scheme at the time of death.
  • Insurance amount calculated as 20 times the wages, with a maximum benefit of Rs, 6 Lakh.
EPFO norms for higher pension
  • Existing employees and those who retired after September 1, 2014 can claim higher pension based on actual salary beyond the prescribed ceiling in the Employees’ Pension Scheme (EPS) of 1995.
  • Employees can submit the joint option with the employers using the members’ section of the EPFO website, which will be made available “soon”.
  • Employees who did not exercise joint option as per paragraph 11(3) of the EPS “would be entitled to exercise joint option”.
  • The employees and pensioners should give joint consent with the employer to the EPFO for adjustment from Provident Fund to Pension Fund and for any re-deposit to the fund.
  • In case of employees of un-exempted establishments, refund of requisite employer’s share of contribution, the same shall be deposited with interest at the rate declared under Para 60 of the EPF Scheme, 1952, till the date of actual refund.

Source “EPFO lists norms to opt for higher pension