The contributions for EPF come from the mandatory deductions from the employees' monthly salary and the matching contributions by the employers.
Employees working in private sectors mostly get their retirement benefits through mandatory contributions to Employees’ Provident Fund (EPF), which apart from providing lump-sum PF payment at the time of retirement, also provides pension to the eligible employees through the Employees’ Pension Scheme (EPS).
The contributions for PF, EPS and EDLI (Employees’ Deposit Linked Insurance Scheme) come from the mandatory deductions from the employees’ monthly salary and the matching contributions by the employers.
The Employees’ Provident Fund Organisation (EPFO) is the regulatory authority to ensure compliance of the EPF and also decides how much interest to be paid on PF contributions and how to invest the PF money within the guidelines set by the government.
Sometimes, some employers deduct the money from the employees’ salary, but don’t deposit it with the organisation managing the PF or don’t deposit their share of consultation.
To eliminate the malpractices adopted by some employees, EPFO will shortly launch an e-inspection system across the country for monitoring of voluntary compliance of EPF scheme by employers, an official said on Friday.
According to Central Provident Fund Commissioner Sunil Barthwal, The EPFO is a firm believer of voluntary compliance and wants to understand the industry issues in case of default and non-compliance of the scheme.
“The EPFO will start an e-inspection system to monitor voluntary compliance by the employers,” Barthwal told PTI at a CII event in Kolkata.
The EPFO is now working on a process, whereby a person will be able to get his or her provident fund on the day of retirement and avail timely pension benefits, Barthwal informed.
However, according to Barthwal, to get maximum benefits of the provident fund, linking the Universal Account Number (UAN) with Aadhaar is required.
So, to ensure proper management of your EPF contributions and to help EPFO in its effort for better compliance, link your Aadhaar Card number with your UAN.