Many employees work in companies that manage their own Provident Fund (PF) trusts instead of depositing PF money directly with EPFO. These organizations are known as EPF-exempt establishments.
Now, the Employees’ Provident Fund Organisation (EPFO) has clarified that employees working in such companies enjoy the same rights and social security benefits as regular EPFO members.
This means your PF savings and benefits remain protected under the law, even if your employer operates a private PF trust.
How PF Contributions Are Deposited
When an employee joins an EPF-exempt company, the employer must create an EPF account and link it to the employee’s Universal Account Number (UAN).
The employee contributes 12% of their salary towards PF, which is deposited into the company’s PF trust.
The employer also contributes 12%. Out of this contribution, 8.33% is transferred to the Employees’ Pension Scheme (EPS-95), while the remaining 3.67% is deposited in the company’s PF trust.
If an employee is not eligible for the pension scheme, the entire employer contribution goes directly into the PF trust account.
4 Important PF Rights Every Employee Should Know
EPFO has reminded exempted establishments that they must follow certain rules to protect employees’ interests.
1. PF Rules Must Be Displayed
Companies running private PF trusts must display all EPF-related rules and regulations on office notice boards.
This helps employees stay informed about their PF benefits and rights.
2. New EPFO Benefits Must Be Passed On
Whenever EPFO introduces a new benefit or makes a favorable change to its schemes, employees covered under private PF trusts must receive the same benefit automatically.
Companies cannot deny these updates to their employees.
3. Employees Must Get PF Account Access
Employers are required to provide digital access to PF account information.
They must also provide a free PF passbook at the end of every financial year so employees can easily review their contributions and balances.
4. PF Claims Must Be Settled on Time
PF-related services should be processed within the prescribed timelines.
This includes PF transfers after changing jobs, retirement settlements, and advance withdrawals for purposes such as medical treatment, education, or marriage.
What to Do If Your PF Rights Are Ignored
EPFO says exempted establishments should provide services that are equal to or better than those available to regular EPFO members.
If an employee believes their PF rights are being denied, they should first raise the issue with their employer or the company’s Board of Trustees.
If the problem is not resolved, employees can approach the Regional Provident Fund Commissioner (RPFC) for assistance.
They can also submit a complaint through EPFiGMS, EPFO’s official online grievance portal.
EPFO Advises Employees to Stay Alert
EPFO has encouraged employees to regularly monitor their PF accounts and stay informed about their rights.
According to the organization, understanding these rights helps employees make full use of available social security benefits and ensures their retirement savings remain safe and protected.
