What is Provident Fund?
Provident fund is a type of retirement fund. This organized to meet the needs after retirement. In a way, it is also called social security cover. The Employees Provident Fund Organization(EPFO) provides the facility of the Provident Fund to the employees working in the organized sector under the Employees Provident Fund Act, 1952.
If 20 or more employees are working in a company or institution, then under the EPF Act, the company will have to pay PF benefits to the employees.
Employees’ Provident Fund(EPF) is made of 3 Main Contributions:
- Employee’s contribution
- Employer’s contribution
- The interest which is earned on both
Monthly PF Contribution
Under the EPF Act, 12% of the employee’s basic salary plus DA goes to the PF account. At the same time, the company also contributes 12% of the employee’s basic salary plus DA. Of the company’s 12% contribution, 3.67% goes to the employee’s PF account. The remaining 8.33% goes to the Employees Pension Scheme.
Benefits of Employee Provident Fund (EPF)
PF is a retirement fund. But you can buy a house if necessary, for child education, treatment, and take out some part of PF. In this way, you can also arrange for money from PF if needed.
When Employees Can withdraw EPF Money
If an employee leaves his job and remains unemployed for more than 60 days, he can apply to withdraw the entire amount of his PF. In such a case, the EPFO will settle its PF claim. An employee cannot withdraw the entire amount of his PF while in the job. When the employee retires at the age of 58, then his PF gets full money.
Why EPFO Established?
Employees’ Provident Fund Organization is a government establishment meant for managing and organizing the Provident Fund related operations and issues faced by the employers or employees about the same. Employees’ Provident Fund is usually a significant part of a working professional’s investment portfolio.
This is a secure investment instrument, which makes it easier for employees’ just starting to invest their funds in any schemes. Other than PF, Bajaj Finance Fixed Deposits are other secure investment instruments that you can invest in for flexible tenors and higher interest rates.
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EPF has a lot more than just being an investment instrument for investors. The several benefits attached to EPF are what make it the first option for investment for young investors. It can prove to be an instrument that helps employees’ to understand the basics of how interest is generated and how investments provide returns.
How to Check EPF Balance?
To learn the basics of investment instruments and EPF, it is necessary for the investor to keep track of the amount of contribution and interest. In this tech-savvy world, the government provides online services on the phone.
There are 4 ways to Check your EPF Balance Amount that are discussed in detail below.
- EPFO Portal
- Via SMS
- Via Missed Call
- Umang App
EPF Balance Check Via EPFO Portal:
Log on to www.epfindia.gov.in, and from the ‘Our Services’ menu, pick the option that says ‘For Employees’. Thereafter, click on ‘Member Passbook’. This will require a log-in with the UAN number and a password.
Check EPF Balance Via SMS Service on Mobile:
Employees can now check their EPF balance on their phones with the SMS services provided by the Employees’ Provident Funds Organization. To check your PF balance via SMS, you need to send an SMS in the format EPFOHO UAN ENG to 7738299899. The last three letters refer to the language in which you want to check your EPF balance.
EPF Balance Enquiry Via Missed Call on Mobile:
You can also check your EPF balance on the phone by giving a missed call on 011-22901406 with the mobile number registered with your UAN account. It is important to note that this service can only be availed by an Employees’ Provident Fund Organization member if PAN card, Aadhaar details, and bank account details are linked with your UAN account.
EPF Balnce Checking Via Umang App:
Unified Mobile Application for New-age Governance (UMANG) is an application created by the Government of India to provide several online services on the phone. It also enables you to check your EPF balance on your phone.
Steps to Check EPF Balance on Smartphone with Umang App
Follow these simple steps to check your EPF balance on the UMANG app on your phone.
Step 1: Install the UMANG App
Firstly, you need to download the UMANG app on your phone. You can find this application on the Google Play Store, the Apple Store, and on Marketplace for windows phones. Once you download the app, you need to install the same on your phone.
Step 2: Register on the UMANG App
Once you have launched the application, you need to register on the UMANG app. Follow the below steps to register on the same:
- When you open the app, click on the menu bar and click on the ‘Register’ option
- Enter your mobile number linked with your UAN account
- After entering the mobile number, you will receive an OTP to verify your phone number
Once this verification is done, your registration process is complete. Now the home page of the UMANG app will be displayed to access the various online services provided by the government.
Step 3: Click on EPFO
While on the home page of the UMANG App, you need to click on the EPFO icon. This action will take you to the page, which shows all the online services provided by the Employees’ Provident Fund Organization(EPFO).
Step 4: Click on ‘Employee Centric Services’
The options displayed on the screen will have an option of ‘Employee Centric Services’. Click on this option to check your EPF balance online.
Step 5: Click on ‘View Passbook’
Once you click on ‘Employee Centric Services’ two options will be displayed on the screen. They are: ‘View Passbook’ and ‘Raise Claim’. Click on ‘View Passbook’ when you want to check your EPF balance on your phone. You can also click on the ‘Raise Claim’ option when you need to claim for a withdrawal from your EPF account.
You can follow these simple steps when you want to check your EPF balance and PF contributions on your phone. There are several other ways to check your EPF balance.
These are the 4 ways in which you can check your EPF balance on your phone. You can keep a check on your PF contributions through the UMANG app and avail the missed call and SMS services for a quick update about the EPF balance.
Also, Read This: Employee Provident Fund Eligibility Criteria for EPF Users