1. A big shout out to Dev from our team who created the superb graphics which has elevated the learning experience. 2. EPF is a vast subject and since most of us have it, it attracts many queries. Please type away your questions on EPF in the comments box below - we'll try to answer most of them. Also browse questions from other viewers as most people have similar queries .. and if you have answers to some of the questions then do share it with all others. Thanks!
Can you please cover more on EDLI. 1. How much is the cover? 2. All of 24% went into EPF and EPS, in that case are we getting insured without premium? 3. What does it insure? Eg: death/medical/accident? I've read in the comments that, EPS doesn't get any interest. If EPS is not beating today's inflation rate, it would never be able to beat post-retirement inflation. So, why should I contribute to EPS, what am I missing here? Do we have the provision to tune the composition? For eg, Let's say I'm already investing in a pension scheme, can I shift my EPS contribution to EPF?
If I merge my previous company PF closing amount. Does it included in current PF calculation? (Old closing amount) + Round(1:11)*8.5/1200 = ?? . Please clarify.
Can excess VPF contribution be claimed with its intrest accured( principle 2.5 lack/year upto 100% Basic would attract tax as per income slab on Interest earned/Year just like FD ....but now the money is compounding at effective PPF returns ( Post Taxation) in a safe government backed organization with much better Liquidity than PPF
Can you please cover more on EDLI. 1. How much is the cover? 2. All of 24% went into EPF and EPS, in that case are we getting insured without premium? 3. What does it insure? Eg: death/medical/accident? I've read in the comments that, EPS doesn't get any interest. If EPS is not beating today's inflation rate, it would never be able to beat post-retirement inflation. So, why should I contribute to EPS, what am I missing here? Do we have the provision to tune the composition? For eg, Let's say I'm already investing in a pension scheme, can I shift my EPS contribution to EPF?
Perfect! Exactly the information I was looking for. Thank You ET Money. Your videos are always informational, crisp and to the point. Waiting for the next one!
Nice narrated with complete frame about the epf, thanks, was having my own understanding the eps part is 3.67% of employer part and balance 8.33% is added to employee benefit from employer contribution. Certainly your narrative given the opposite dimension. Trust this may give better clarity to all. However if you can give narrative with an example for contributions and amount accumulated for a period of 5 years , 10 years with interest calculation on accumulated amounts.. 👍🙏
Great info sharing mr Shankar Infact it is very useful and makes every one to know about EPF &EPS. Would be great get information on the interset part ,.prior to that if we withdraw our EPF on attainment of 58 years are we eligible to get the interest after withdrawal pl comment
The biggest benefit of EPF is its financial inclusiveness. In a country where financial awareness has only begun to improve, EPF by its default opt-in policy, ensures most of the working class has a corpus built for their raining days. I remember 20 years ago, when daily wages were far lower than they are today, the company my Dad used to work, used to deduct EPF (even though it was meagre) from their weekly wages. I only hope those people are getting some pension and got a good corpus upon retirement
Thanks Shankar and ET money team. I had a very basic understanding of EPF. I was not aware there are so many things to it. Good learning of us. As requested by many members here, one video on EPS would be great.
Another informative video. The only concern I have with EPS is it's still relatively difficult to merge old PF accounts with the current one even if applied online. They reject it with random reasons, hope the government looks into it.
It's been 5 months and my earlier PF which was maintained with a trust is still not transferred to new organisation which maintain it with EPFO. This even after I had UAN and Aadhar linked with OTP coming on my mobile. The process is bad even after going online. Given an option now, I wouldn't be investing in EPFO, I would earn higher interest elsewhere and get more take home.
Nice video. Employer will deduct 12 percentage of employee basic and transfer to epf. Employee has an option to choose to transfer rest 88 percentage to epf.. It is called voluntary epf.. Many people do opt for volunteer EPF.. Bocz no other saving will give 8.5 interest.. It will impact people doing volunteer pf
One question. How will be the pension paid ? Will it be monthly ? Also, why EPS accumulation not transferred when I transfer my epf from one PF account to another which is the case on job change ? Will I lose the amount?
Awesome Explanation. One point to add, on who can check EPF details on EPFO website and who cannot and what online servivlces does EPFO provide to the subscribers .
@@gvamsi55 I know this. I wanted this to be communicated in the video. Also, not everyone can find the EPF data on EPFO website even if they contribute as the contribution happens through Employer Trusts.
Beautifully explained and illustrated with nice visuals.. always looking forward to listening to you and your insights on various financial features which are at our disposal and can be leveraged well with proper guidance and knowledge.. Thanks for uplifting us.
i would like to say as a HR student the contribution of employer is now 13% which split into 4 parts 1: 8.33 into EPS 2: 3.67 into EPF 3: 0.5 into Admin charges 4: 0.5 into EDLI
Excellent demonstration. I wanted to know more about the Passbook where various components are displayed eg employee share , employer’s share etc . Also which amount needs to be considered while withdrawing amount
I regularly watch your videos on personal finance 101. Explained with amazing clarity, great graphics and examples. Please keep them coming. You are doing such a great job.
Shankar ji , thanks a lot and request you to post a video on EPS as well which will certainly help us gain knowledge as to how it works and the benefits of it such as interest & insurance etc. Thanks a lot once again
Great video.Thank you for your comprehensive explanation. One doubt is you haven't elaborated on life insurance after mentioning it at the beginning of the video. Do we pay for life insurance too or not?
Again a nice video.. 1. What happens to EPS component? When can I get it ? Only after 58 years? What would be pension amount and duration? 2. Some big organization have trust, how are they different from epf? Will EPF and EPS components be different in trusts and normal EPF
Mr. Hemanth, EPS can be availed only after attaining age of 58 years. The pension amount would depend on your last drawn basic salary and has a specific formulae to calculate the same.
What about the inbuilt insurance plan? What kind of insurance is this? What will be the coverage? How can we avail it? Can you please throw some light to it?
Dear team, Can you throw some light on applicability of tax if EPF is withdrawn by an employee due to not into service for more than 2 months and age of employee is less than 55 years?
Very nicely & meticulously explained the EPF concept Sir. Please make similar kind of a video on NPS as well, regarding understanding of Tier-I, Tier II, Age wise asset allocation automated & manual, withdrawal rules, benefits, different schemes etc. That would a great favour if you make it. 👍👍👍
Did you forget to cover EDLI? How does it provide insurance? Most helpful part of the video is the 2.5 lakh rule which consists only employee contribution and not employer's contribution because this rule has created lot of confusion.
Sankar Sir, Hats off your beautiful narration. I have one doubt about the withdrawal. 1. Can Provident fund corpus be retained even after retirement at 60 years? 2. In such a case, will it continue to end interest? And tax on such continuation? 3. The Recent amendment- the excess contribution over 2.5 lakhs- will it be taxed in the subsequent years also? Keep posting on such relevant topics.
My new employer doesn't contribute anything to EPS and puts the entire 12% in EPF only. However, my previous employer uses to contribute a small sum to Pensions - is that normal? I saw in my EPF passbook on the UAN portal and the amount under the pensions header is 0 while Employer Contri for EPF is complete 12%
I am also seeing the same.. My prev organization was following this 8.33% or Rs1250 (whichever is lower) into EPS rule but current org is contributing all 12% into EPF only. Is there any rule or form which I opted by mistake?
Questions from my side: 1. How do I check the current value / corpus of my EPF account? 2. If I change my employer (get a new job), the PF account will be same or a new account will be made? If yes, Can I tell my new employer to use my previous EPF account?
In my knowledge, there are at least 2 things about EPF which should've been included in the video. 1. We're not enrolled in EPS if our very first Basic + DA exceeds 15,000. So a person with more than 15k salary at the time of first salary will only have EPF from employer contribution and not EPS. However, once enrolled in EPS, we cannot revert it back even if our salary increases. EDIT: and EPS does not earn any interest. our money will be stagnant, not growing even a single percent, and we won't be able to withdraw it either. 2. Withdrawal of EPF while being unemployed has lots of conditions. Only if we're employed for more than 5 years in a row, will we be allowed to take out the money without paying any tax (EEE). If we withdraw before completing our 5 years of continuous service, all the interests earned from EPF will be taxed. Moreover, all our previous years' Tax deductions under 80C due to EPF will be reversed. These were important points and would've made the video complete.
Thanks for contributing Aseem Sharan. Yes .. these and a lot more points did come up in our research but we could not fit everything in a single video of 17 mins. There will be a follow-up video certainly .. but nothing works better than viewers doing their own research as you have done here.
@@gd5546 yes you will get.. just keep transferring old pf to a new one while changing the employer. Also, be assured your UAN is not changing everytime you switch your job.
If i have epf account which started 5 years before, now am initiating the contribution towards vpf. So while withdrawal, interest paid on that savings will be taxable?
Sir please clear my doubt. The employer deducts the PF amount from his employee's salary and the employer transfers the PF amount to his trust account. The employee, the employer has to withdraw the PF amount from the trust account, but the employer Not allowed. How to get employee PF in this scenario
Can you please make a detailed video on delay in epf interest credit. This delay is happening every year. There are few points which are confusing. 1) What is the impact on compounding due to delay in interest credit. 2) Why EPFO interest credit process is delayed. 3) Can subscribers/contributors of epf can do something regarding this (is there any law to govern it)
Good Video, 1 question, If I invest my 100% of Basic Salary in VPF 1.Will I get same interest rate on whole amount? 2.Whole PF+VPF amount after my retirement will be Tax free?
Hi sir, please answer these queries: 1) How to sum up all the EPS amount from different organisations? 2) Do we get the 8.5 percent interest for the EPS amount as well ? we are unable to check the above mentioned 2 points in the EPFO website.please guide
I had restructured my salary components by opting for 1800 pf contribution instead of 12%. Now I have understood I'm loosing on tax benefit from employer contribution. Can I restructure again back to 12%?
Very nice and informative video, Especially music and calm background color. I have doubt, In my PF, Pension contribution showing as zero from April 2021, Is there any change ?
Thanks Sir for explaining this complex topic in very simple terms. Just one request, can you also make videos on EPS and EDLI so that we understand how one can get the EPS amount after retirement and what are the benefits given in EDLI
A wonderful package of knowledge again... and this time it is about EPF... Much needed information for everyone... I already became a very good fan of Mr. Sankar Nath... Awesome presentation... Thank you...
I have received an offer letter, where the employer contribution is written as 1800. My basic is around 45k. I hope the deduction from my salary towards employee contribution will also be the same as of employer (1800).
It's really a very informative video.kindly make a video on different types of provident funds like Public provident fund, Employee Provident fund , statutory Provident fund , National Pension Scheme and other money market instruments.
-It was beautifully explained. required more details on interest calculations of EPF... How check the interest has been credited or not?? I have not received for the past FY 19-20.. can anyone help me out
Hello Sir..can u plz share ur insights on how will the subscribers can withdraw the amt from epf on age of 58 or more and what happens to 8.33% contributed to EPS - how is that taxed or what are the rules for withdrawal on that amt
