EPFO: Don’t miss out on PF, pension, and ₹7 lakh insurance benefits—complete these 4 tasks today..

A significant change has been introduced by the Employees' Provident Fund Organization (EPFO) for salaried employees. The government has increased the monthly salary threshold for mandatory EPFO ​​coverage from ₹15,000 to ₹25,000. Following this change, which came into effect on September 17, more than 5.1 million (51 lakh) additional employees will now be covered under the Provident Fund, Pension, and Insurance (EDLI) schemes.

What do EPF, EPS, and EDLI offer?
* EPF: A retirement fund is built through contributions from both the employee and the employer.
* EPS: Eligible employees receive pension benefits as per the prescribed rules.
* EDLI: In the event of an employee's death, an eligible nominee can receive an insurance benefit of up to ₹7 lakh.

How much PF will be deducted on a salary of ₹25,000? Understanding the calculation:
Contribution    Calculation    Amount
Employee’s EPF    ₹25,000 × 12%    ₹3,000
Employer’s EPS    ₹25,000 × 8.33%    ₹2,083
Employer’s EPF    ₹25,000 × 3.67%    ₹917
Total Contribution    ₹6,000

Suppose an employee’s entire monthly salary of ₹25,000 is eligible for PF contributions.

In this example, ₹3,000 will be deducted from the employee’s salary every month. The employer will also contribute ₹3,000. Of this, approximately ₹2,083 will go toward the pension (EPS) and ₹917 toward the EPF account. Consequently, a total of ₹3,917 will be deposited into the EPF account. This calculation assumes eligibility for the EPS scheme and that the full ₹25,000 is considered as the salary eligible for contributions. The premium for EDLI is paid separately by the employer. Follow these 4 steps to enroll in the EPFO:

1. Check eligibility: Ensure that your monthly 'eligible salary' (wages) is ₹25,000 or less and that you meet the other conditions of the scheme.

2. Contact HR: Inquire with your company’s HR, accounts, or payroll team regarding enrollment in the EPF.

3. Provide documents: Submit the required documents, such as your Aadhaar, bank account details, and employment-related records.

4. Check your PF passbook: After enrollment, verify the contribution amounts in your salary slip and EPFO ​​passbook.

Please note that the introduction of the new ₹25,000 threshold does not automatically make every employee a member of the EPS (Employees' Pension Scheme). Eligibility for a pension also depends on your membership history and the applicable rules.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.