Benefits to Members under EPF schemes

Broadly we may categorise the benefits into three: Provident Fund Benefits | Pension Benefits | Death Benefits
  1. Provident Fund benefits
    • Employer also contributes to Members PF @ 3.67% (1.67% in case of sick industry - eg: beedi)
    • EPFO guarantees the Employer contribution and Govt. gives a decent interest to PF accumulations
    • Member can withdraw from this accumulations to cater financial exigencies in life - No need to refund unless misused
    • On resignation, the member can settle the account. i.e., the member gets his PF contribution, Employer Contribution and Interest.
  2. Pension Benefits
    • Pension to Member
    • Pension to Family (on death of member)
    • Scheme Certificate
      • This Certificate shows the service & family details of a member
      • This is issued if the member has not attained the age of 58 while leaving an establishment and he applies for this certificate
      • Member can surrender this certificate while joining another establishment and the service stated in the certificate is added with the service he is gaining from the new establishment.
      • After attaining the age of 50 or above, the member can apply for Pension by surrendering this scheme certificate (if total service is atleast 10 years)
      • This is a better choice than Withdrawal Benefit, as a member dies holding a valid scheme certificate, his family will get pension (Death when NOT in service)
    • Withdrawal Benefit
      • if not eligible for pension, member may withdraw the amount accumulated in his pension account
      • the calculation of this amount is based only on (i) Last average salary and (ii) Service (Not based on actual amount available in Pension Fund Account)
    • No amount is taken from Member to give Pension to the Member. Employer and Govt. contributes to Pension fund @8.33% and @1.16% respectively
    • EPFO guarantees pension to members, even if the Employer has not contributed to Pension Fund.
    • Pension calculation is similar to that of Govt. Employee.
  3. Death Benefits
    • Provident Fund Amount to Family (or to Nominee)
    • Pension to Family (or to Parent / Nominee)
    • Capital Return of Pension
    • Insurance (EDLI) amount to Family (or to Nominee)
      • No amount is taken from Member for this facility. Employer contributes for this.
    • Nominee is basically determined as per the information submitted by the member at this office through FORM-2


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