EPFO Benefit : In a major boost for salaried employees, the Employees’ Provident Fund Organization (EPFO) has introduced a significant benefit for those earning a salary of ₹15,000 or less. This move is aimed at enhancing financial security and social welfare for workers in India. If you are an employee under EPFO, this change could bring you direct financial benefits. Let’s explore the details of this scheme, its eligibility criteria, and how you can take advantage of it.
What is the New EPFO Benefit for ₹15,000 Salary Earners?
EPFO has made amendments to its policies to ensure better financial support for employees earning a basic salary of ₹15,000 or less. This initiative is designed to enhance retirement savings and provide increased financial assistance to employees and their families.
Key Highlights:
- Employees with a basic salary of ₹15,000 or below will receive direct benefits.
- The initiative aims to increase retirement security and provide financial stability.
- Employers and employees will continue to contribute to the Provident Fund (PF) as per the rules.
- Additional pension benefits might be introduced for eligible employees.
- The new benefit is expected to help thousands of employees across the country.
Who is Eligible for This EPFO Benefit?
To qualify for this new EPFO scheme, employees must meet specific criteria. Below is a table outlining the eligibility conditions:
| Criteria | Details |
|---|---|
| Salary Limit | ₹15,000 or below (Basic + DA) |
| EPF Membership Requirement | Must be an active EPFO subscriber |
| Employer Type | Private and Public Sector Employees |
| Contribution Requirement | As per EPFO regulations (both employer and employee contribute) |
| Employment Type | Permanent, Contractual, and Temporary Employees |
| Pension Scheme Inclusion | Eligible under EPS (Employee Pension Scheme) |
| Withdrawal Rules | Subject to EPF and EPS guidelines |
If you meet these conditions, you can take advantage of the scheme and enjoy the financial benefits it offers.
How Does This Benefit Impact Employees?
This benefit ensures that low-income employees are financially secure by making long-term savings more accessible. Below are the major advantages of this scheme:
1. Increased Retirement Savings
- The new scheme ensures that even employees earning a modest salary can accumulate a significant retirement corpus.
- The employer’s contribution adds to the employee’s savings over time.
2. Higher Pension Benefits
- The pension scheme under EPFO ensures that employees receive financial support after retirement.
- Monthly pension payouts can increase due to this initiative.
3. Financial Security for Employees
- Employees can withdraw EPF funds in case of emergencies.
- The funds act as a financial safety net during unforeseen circumstances.
4. Better Employer Compliance
- Employers will be required to adhere to EPFO’s revised benefits, ensuring compliance with government regulations.
- This helps in securing the rights and benefits of employees.
How Much Will Employees and Employers Contribute?
The Provident Fund (PF) contributions are made by both the employer and the employee. Below is a table detailing the percentage breakdown of contributions:
| Contribution Type | Percentage of Basic Salary + DA | Who Pays? |
|---|---|---|
| Employee Provident Fund (EPF) | 12% | Employee |
| Employer’s EPF Contribution | 3.67% | Employer |
| Employer’s EPS Contribution | 8.33% | Employer |
| Total Contribution | 24% | Employer + Employee |
For an employee earning ₹15,000 per month, the contributions would be calculated as follows:
| Component | Amount (₹) |
|---|---|
| Employee’s Contribution (12%) | 1,800 |
| Employer’s EPF Contribution (3.67%) | 550 |
| Employer’s EPS Contribution (8.33%) | 1,250 |
| Total Monthly Contribution | 3,600 |
These contributions accumulate over time, ensuring substantial retirement benefits.
See more : New Pension Rules 2025
How Can Employees Avail This Benefit?
If you are eligible, follow these steps to avail the EPFO benefit:
- Ensure Your EPFO Account is Active
- Check your Universal Account Number (UAN) on the EPFO portal.
- Verify that your employer has registered you under EPF.
- Confirm Employer Contributions
- Ensure that your employer is making regular contributions.
- You can check this in your EPF passbook online.
- Update Your KYC Details
- Make sure your Aadhaar, PAN, and bank account details are linked to your EPF account.
- Check Your EPS Eligibility
- Employees earning ₹15,000 or less are automatically enrolled in EPS (Employee Pension Scheme).
- Ensure that your employer is contributing 8.33% to EPS.
- Use the EPFO Online Portal
- Login to the EPFO member portal to check your balance.
- You can also claim benefits, update details, and request withdrawals.
By following these steps, employees can maximize their benefits and secure their financial future.
How to Check Your EPF Balance?
Employees can check their EPF balance through various methods:
| Method | Steps to Check Balance |
|---|---|
| EPFO Member Portal | Login to the official website, enter UAN and password. |
| UMANG Mobile App | Download the app, link UAN, and check your balance. |
| SMS Service | Send “EPFOHO UAN” to 7738299899 from your registered mobile number. |
| Missed Call Service | Give a missed call to 011-22901406 from your registered number. |
| EPF Passbook Download | Download from the EPFO portal and check contributions. |
These simple methods help employees stay updated with their PF balance and contributions.
The EPFO’s latest initiative for ₹15,000 salary earners is a significant step towards ensuring financial security for low-income employees. With enhanced benefits, increased savings, and pension support, this move strengthens the social security system for workers across India. Employees should take proactive steps to verify their EPFO accounts, ensure compliance, and maximize their retirement benefits. If you meet the eligibility criteria, this scheme could greatly enhance your financial well-being in the long run.