The Employees’ Provident Fund is an initiative of the Ministry of Labour owing to which both the employer and the employee contribute 12% of the employee’s dearness allowance and basic salary (individually) to the Employees’ Provident Fund. The main objective behind launching this scheme was to promote the habit of saving and building a retirement corpus as a reward for the employees’ hard work and dedication towards their jobs.
The EPF is considered to be the most ideal retirement fund for employees. As per the Provident Fund Act, all companies/organizations having more than 20 individuals/employees who are on contract are bound to register for EPF. Moreover, only the employees who earn upto Rs. 15,000 will be covered under the scheme.
From 15 September, employers must mandatorily make the PF payment online, either on the EPFO portal or through any authorized bank’s website. The following section explains how you can make EPF payment online.
Steps to Make EPF Payment Online
Explained below are the steps that you should follow to make EPF payment online, on the EPFO portal-
- Log in to the EPFO online portal through your ECR (Electronic Challan cum Return) credentials
- Submit the details of your PF account including your Establishment ID, Name, Address, Exemption status, etc.
- Click on the ‘Payment’ option, and select ‘ECR’ upload from the dropdown menu
- Next, you need to select the options of ‘Wage month’, ‘Salary Disbursal Date’, ‘Rate of Contribution’
- Upload your ECR file in the provided column
- Upon successful validation of your ECR file, you will be taken to the next screen displaying the same message (However, if your ECR file does not get validated, you will receive an error message. In such a case, you will have to upload the correct ECR file in the specified format)
- On the next screen, you will be able to see the TRRN of the uploaded file
- Click on ‘Verify’ followed by clicking on ‘Prepare Challan’ option to generate ECR summary sheet
- Next, enter the ‘Admin/Inspection charges’ and click on ‘Challan’ button
- Press the ‘Finalize’ option after carefully verifying the challan option
- Now, against the relevant TRRN, click on the ‘Pay’ option
- Select the ‘Online’ mode of payment and select your preferred bank from the list of available options
- Click on ‘Continue’ and then log in to your bank’s internet banking website to make the payment
- Upon successful payment, a transaction/payment ID will be generated and the e-Receipt will be sent to you
- Further, your transaction will be updated in your EPFO passbook and you will be provided a confirmation against TRRN by the EPFO
How to Download an EPF Passbook?
Members of the Employees’ Provident Fund can easily download and print their EPF passbook online, at the comfort of their homes. All they need to do is follow these simple steps-
- Open the EPFO website on your mobile/laptop/computer
- Visit the ‘Member Passbook’ page
- Enter your credentials such as UAN and the password which is generated on the EPF member portal
- Click on the ‘Login’ button after carefully entering your credentials
- The next page that appears will display the Member IDs of all EPF accounts that are linked with your UAN
- Click on the ‘EPF Member ID’ visible under the option, ‘Select Member ID to view Passbook’
- A new tab with your EPF passbook will open in the PDF format
- You can choose to ‘Download’ or ‘Print’ your passbook from the ‘options’ tab on the screen
How is your EPF Passbook Updated?
As soon as any contribution/withdrawal is made to the member’s EPF account, EPFO (Employees’ Provident Fund Organization) updates the employees’ EPF Passbook. It is important to note that the EPF passbook does not contain the date on which the contribution is made, it has the month and year in which the contribution was made. So, if you ever notice that your EPF passbook is not updated, you must log in after a few days to check if the contribution has been updated.
What are the Benefits of having an EPF Account?
Following are the benefits of having an EPF account-
- The use of EPFO allows easy redressal to compliance and grievance for employees
- Since the Employees’ Provident Fund is governed by a statutory body, it is mandatory for all organizations to follow all rules and regulations set up by EPFO on a daily basis
- EPFO makes the availability of online services available easily
- With the help of EPF, the claim settlement time has been reduced from 20 days to 3 days
- EPF facilitates the promotion and encouragement of all sorts of voluntary compliance
- For employees, EPF allows them to save a lot of money in the long run
- Monthly contribution to EPF makes it easier for working professionals to save a good amount of money for their requirement, as they do not have to take out a lump sum amount for investment
- Employees can also withdraw a part of their EPF at the time of emergencies
- EPF works as a reliable source of long term investment for employees, whilst building a retirement corpus for them
- The part of an employee’s salary that is deducted towards EPF is a part of his/her non-tax deductible income
- Employees can transfer their EPF corpus from one employer to another as and when they switch jobs
- EPF is a major tax-saving instrument
Following a few simple steps, you can easily make EPF payment online. All you need to do is log in to the EPFO portal using your ECR (Electronic Challan cum Return) credentials and follow the steps further. You will eventually be asked to upload your ECR file, so it is advised that you keep it ready with yourself beforehand.