Employees Provident Fund Organization

Employees Provident Fund Organization
(EPFO) is India's one of the largest central  government organization, which regulates the Central Board of Trustees, a statutory body formed by the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 and is under the administrative control of the Ministry of Labour and Employment, Government of India. It provides to all industrial labour, a retirement benefits scheme which covers two major benefits after retirement that is:

1) Provident Fund
2) Pension Fund

Provident Fund
In this scheme, an employee get a lumpsum amount after retirement. He contributes a deduction from his salary during his working life and this small drop of contribution become an ocean at retirement.

Pension Fund
This scheme provides a fixed monthly income for life time after retirement. The same contribution which deduct from once salary for provident fund, a part of it goes to pension fund and secure for monthly payments.

How it works??
During working life, employer deduct 12% of Basic+DA from salary and add the equal amount by own. So it becomes 24% of total. This amount gets distrbuted into two funds  i.e., Provident fund and Pension fund. The employee's contribution of 12% goes to provident fund and employer's contribution of 12% divides into two part where 3.67% goes to PF and 8.33% creates Pension fund. So, out of total 24% monthly contribution, 15.37% gets contributed to PF account and 8.33% into Pension fund. Both funds are managed by EPFO and certain percentage of yearly interest is also added. After retirement employee get the both benefits from EPFO.

What is UAN??
UAN or Universal Account Number is a 12-digit account number, which is allotted only one time to every employee when they registered first time with any organization. Under this account every details of their employment history are retained by EPFO.

Thanks
Saurav..