EPF Frequently Asked Questions (FAQ): Everything You Need to Know About Your Employee Provident Fund
If you’ve ever had questions like “Why is my EPF claim rejected?”, “What’s the difference between EPF and EPS?”, or “How can I check my PF balance online?”, this comprehensive FAQ section is for you.
We’ve compiled the most commonly asked queries related to EPF (Employees’ Provident Fund), including eligibility, withdrawal rules, pension calculations, claim tracking, and more.
Whether you’re a new employee, a job switcher, or approaching retirement, this EPF FAQ will help you understand your rights, avoid mistakes, and make informed financial decisions.
Before we start If you’re wondering how to withdraw money from your EPF (Employees’ Provident Fund) account whether due to retirement, a job change, or financial emergency you can check this here.
What is Employee Provident Fund (EPF)?
The EPF is a retirement savings scheme managed by the Employees’ Provident Fund Organisation (EPFO) under the Ministry of Labour and Employment, Government of India. It mandates contributions from both employees and employers to build a corpus for the employee’s retirement.
Who is required to contribute to the EPF?
Employees earning a basic salary plus dearness allowance of up to ₹15,000 per month are mandatorily required to contribute to the EPF. Those earning above this threshold can opt-in voluntarily.
What is a Universal Account Number (UAN)?
The UAN is a unique 12-digit number assigned to each employee contributing to the EPF. It serves as an umbrella for multiple Member IDs allotted to an individual by different establishments, facilitating easier management of EPF accounts.
How can I activate my UAN?
You can activate your UAN by visiting the EPFO Member Portal, clicking on ‘Activate UAN’, and following the on-screen instructions.
What is the contribution rate for EPF?
Both the employee and employer contribute 12% of the employee’s basic salary plus dearness allowance. Out of the employer’s 12% contribution, 8.33% goes to the Employees’ Pension Scheme (EPS), and the remaining 3.67% goes to the EPF.
Are there any administrative charges?
Yes, employers are required to pay an additional 0.5% towards EPF administrative charges and 0.5% towards Employees’ Deposit Linked Insurance (EDLI) scheme.
When can I withdraw my EPF balance?
You can withdraw your EPF balance under the following circumstances:
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Upon retirement at the age of 58.
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If unemployed for more than two months.
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For specific needs like medical emergencies, marriage, education, or home purchase, subject to certain conditions.
How can I withdraw my EPF online?
You can withdraw your EPF online through the EPFO Member Portal or the UMANG App. Ensure your UAN is activated, and KYC details are updated.
What is the current interest rate on EPF?
The EPF interest rate is determined annually by the EPFO. For the financial year 2024-25, the interest rate is 8.75% per annum.
Is EPF interest taxable?
Interest earned on EPF is tax-free up to ₹2.5 lakh of annual contribution. Contributions beyond this limit may attract tax on the interest earned.
How can I transfer my EPF account when changing jobs?
You can transfer your EPF account online through the EPFO Member Portal by submitting a transfer request under the ‘Online Services’ section.
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Can I have multiple EPF accounts?
Ideally, you should have only one EPF account linked to your UAN. If you have multiple accounts, you can merge them using the ‘One Employee – One EPF Account’ facility on the EPFO portal.
What is the Employees’ Pension Scheme (EPS)?
EPS is a scheme under EPFO that provides pension benefits to employees upon retirement, provided they have completed at least 10 years of service.
How is the pension amount calculated?
The pension amount is calculated based on the average salary of the last 60 months and the total years of service, using the formula: (Pensionable Salary x Pensionable Service)/70.
Are international workers required to contribute to EPF?
Yes, international workers employed in establishments covered under the EPF Act are required to contribute to the EPF, unless exempted under a Social Security Agreement between India and their home country.
Can international workers withdraw their EPF balance?
International workers can withdraw their EPF balance upon retirement, reaching the age of 58, or in case of permanent disability or termination of services in India.
What should I do if there’s a discrepancy in my EPF account?
You can raise a grievance through the EPFO Grievance Portal or contact the EPFO helpdesk at 14470 for assistance.
How can I update my KYC details?
Log in to the EPFO Member Portal, navigate to the ‘Manage’ section, and select ‘KYC’ to update your details.
PF withdrawal real time example
Let’s take an example to understand EPF withdrawal better:
Ravi, a 35-year-old IT employee, has worked in three companies for a total of 12 years. He contributes ₹3,600/month to EPF (employee + employer) and earns interest at an average rate of 8.5%.
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Total contributions over 12 years: ₹5.18 lakh
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Estimated corpus with interest: ₹7.8–8.2 lakh
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Withdrawal condition: He has been unemployed for more than two months
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Method: Ravi uses the UMANG app and submits Form 19 with Aadhaar e-KYC
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Outcome: The claim is settled and credited to his bank account in 9 working days
This case shows how simple the process can be when all documents are in order.
Top Reasons Your EPF Claim Gets Rejected
Thousands of users face claim rejection due to small oversights. Here are the most common reasons:
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Mismatch in KYC details – Spelling errors or non-matching Aadhaar, PAN, and bank data
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Unverified documents – Aadhaar or PAN not linked with UAN
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Multiple UANs or unlinked job history – Claim fails if service records aren’t consolidated
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Incorrect bank information – Wrong IFSC or account number
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Missing employer approval – Required for some forms (e.g., Form 10C offline)
Tip: Always verify KYC in your EPFO member portal before raising a claim.
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Understanding EPF vs EPS: What’s the Difference?
| Feature | EPF (Provident Fund) | EPS (Pension Scheme) |
|---|
| Purpose | Lump sum savings for retirement | Monthly pension post-retirement |
| Contributions | 12% each from employee and employer | 8.33% from employer’s contribution only |
| Interest | 8.75% (2024–25) | No interest (defined benefit plan) |
| Withdrawable? | Yes – partially or fully | No – converts to pension after age 58 |
| Minimum service | No limit | 10 years for pension eligibility |
| Payment form | Lump sum withdrawal | Monthly pension after retirement |
Example: Ravi’s ₹3,600/month includes an EPS portion. After 12 years:
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EPF accumulates to ₹7.8 lakh
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EPS balance is ~₹43,200
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He can withdraw EPF immediately, but pension from EPS begins only at age 58 (if eligible)
Conclusion:
We hope this EPF FAQ section helped clarify your doubts regarding the Employee Provident Fund scheme. From contribution breakdowns to withdrawal eligibility and pension benefits under EPS, knowing how the system works is key to maximizing your savings and avoiding delays in claims.
If your question wasn’t covered, we recommend visiting the official EPFO website or contacting your HR/finance department for specific guidance.
Have a question that’s not listed here? Drop it in the comments or contact us—we’ll keep updating this guide with new queries to keep you informed.
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Disclaimer
The information provided in this article is for general informational purposes only. While we strive to keep the content accurate and up to date, procedures and policies related to EPF may change. Readers are advised to visit the official EPFO website or consult with an authorized EPFO representative for the latest guidelines. We do not take responsibility for any errors, omissions, or losses incurred based on the information shared here.
