If you work for a company that operates its own Provident Fund (PF) trust, there is important news for you.
The Employees’ Provident Fund Organisation (EPFO) has clarified that employees working in EPF-exempt establishments enjoy the same rights and protections as regular EPFO members.
The organization recently shared important information to ensure employees are aware of their benefits and know where to complain if those benefits are not provided.
How PF Contributions Are Managed
When an employee joins a company that runs a private PF trust, the employer must provide an EPF account number and link it with the employee’s Universal Account Number (UAN).
The employee’s 12% PF contribution is deposited into the company’s PF trust account.
From the employer’s 12% contribution, 8.33% is transferred to the EPFO pension scheme (EPS-95), while the remaining 3.67% is deposited into the trust’s PF account.
In cases where an employee is not eligible for the pension scheme, the employer’s entire 12% contribution is credited to the trust’s PF account.
Rules Companies Must Follow
EPFO has made it clear that exempted establishments must follow several important rules to protect employees’ interests.
PF Rules Must Be Displayed
Companies are required to display a copy of their PF trust rules on the office notice board so employees can easily access the information.
Employees Must Get New EPFO Benefits
Whenever EPFO introduces a beneficial change or amendment to its schemes, the same benefit must automatically be extended to members of the company’s PF trust.
Transparency Is Mandatory
Employees should be able to check their PF account details through computer-based systems.
Companies must also provide a free PF passbook at the end of every financial year.
Timely Settlement of Claims
PF-related services such as retirement settlements, advance withdrawals for education, marriage, or medical needs, and fund transfers after changing jobs must be completed within the prescribed time limits.
What to Do If Your Rights Are Denied
EPFO has stressed that private PF trusts are meant to provide better services to employees.
If an employee is not receiving the facilities or benefits they are entitled to, they should first raise the issue with the employer or the Board of Trustees.
If the matter is still not resolved, employees can directly contact the Regional Provident Fund Commissioner (RPFC) through email or file a complaint on EPFiGMS, the official grievance portal of EPFO.
EPFO’s Message to Employees
EPFO has urged all members to stay informed about their PF rights and benefits.
Being aware of these rules can help employees protect their savings and ensure they receive all the social security benefits they are entitled to.
