The Employees’ Provident Fund Organisation (EPFO) operates India’s provident fund and pension fund scheme, through joint contributions from both employers and employees. You receive the lump sum corpus at retirement.
You are eligible to open an EPF account if your basic pay and dearness allowance are up to ₹15,000, and you can add the VPF option if the basic pay and DA exceed ₹15,000 per month. It provides 8.25% interest (this quarter) for EPF and voluntary provident fund (VPF) contributions by salaried citizens.
In terms of tax benefits, annual employee contributions up to ₹1.5 lakh are exempt under Section 80C of the old tax regime. Employers’ contribution of up to 12% (below ₹7.5 lakh) is exempt under both the old and new tax regimes. There is no comparable benefit under the new tax regime at present. Further, interest on employees’ accumulated contribution is tax-free up to ₹2.5 lakh, while interest on the employer’s contribution is tax-free.
Today, we explain how you can check your PF balance, EPF account passbook or track the status of your application through the Umang app, SMS or WhatsApp, or the missed call facility.