EPFO to go digital by 2018; here are 5 advantages it offers
Retirement body EPFO going digital by 2018 will also reduce chances of corruption and public harassment.
Mumbai: Retirement body Employee Provident Fund Organisation (EPFO) is set to go completely paperless by August, 2018, in line with Prime Minister Modi’s “Digital India” initiative.
This will put an end to all the paperwork hassle one has to undertake while changing jobs, checking the PF balance, redeeming the PF, etc. It will also reduce chances of corruption and public harassment.
The EPFO has in fact already launched a host of online services like EPF withdrawals.
"The EPFO has set a target. We have decided to make electronic paper-free organisation by next the Independence Day where all services will be provided electronically (through online or mobile handsets)," Central Provident Fund Commissioner V P Joy had said after flagging of a Trinaga Yatra.
Here are the major benefits that EPFO guarantees to its subscribers:
1) Both the employer and employee contribute 12 per cent of basic salary towards EPF. While 12 per cent of an employee’s basic salary goes towards the EPF kitty, 8.33 per cent of the 12 per cent of the employer’s contribution is invested in the EPS or pension scheme. The balance 3.67 per cent goes to the EPF kitty.
2) The employee is earns interest on the PF accumulation which is exempt from income tax. EPF account continues to earn interest even if it has been inoperative for more than three years.
3) Under the Employees’ Deposit Linked Insurance Scheme, an insurance coverage up to Rs 6 lakh can be claimed by survivor of deceased member.
4) On the eve of Diwali, EPFO rolled out the linking of Aadhaar with UAN for "better and speedy EPFO services" to members. This makes transferring PF while switching from one company to another gets easier now.
Form 11 that will now replace Form 13 in all cases of auto transfer. EPFO accounts must be linked with Aadhaar card by December 31, 2017, as mandated by the government.
5) EPFO subscribers can also avail the website and the app for checking their PF balance. They can withdraw PF for the purchase or construction of house, repayment of house, illness, higher education, marriage etc.