Many employees believe that people working in companies with private PF trusts may receive fewer benefits than regular EPFO members.
However, the Employees’ Provident Fund Organisation (EPFO) has clarified that this is not true.
In a recent video, EPFO explained that employees working in EPF-exempt establishments enjoy the same rights
and protections as other EPFO members. The organization also highlighted several important rules that employers must follow.
How PF Contributions Work in Private PF Trusts
When an employee joins a company that operates its own PF trust, the employer must provide an EPF account number and link it to the employee’s Universal Account Number (UAN).
The employee’s 12% PF contribution deducted from salary is deposited into the company’s PF trust.
The employer also contributes 12%. Out of this amount, 8.33% is transferred to the EPFO pension scheme (EPS-95), while the remaining 3.67% goes into the company’s PF trust account.
If an employee is not eligible for the pension scheme, the employer’s full 12% contribution is deposited into the PF trust account.
Important Rights Every Employee Should Know
EPFO has made it clear that companies running private PF trusts must follow certain rules to protect employees’ interests.
Display of PF Rules: Employers must display a copy of the company’s EPF rules on the office notice board so employees can easily access the information.
Benefit of New EPFO Rules: If EPFO introduces any employee-friendly changes or benefits in the future, those benefits must automatically be extended to members of the private PF trust as well.
Transparency in PF Accounts: Companies must allow employees to view their PF account details through computer systems and provide a free PF passbook at the end of every financial year.
Timely Settlement of Claims: PF transfers, retirement settlements, and advance withdrawals for reasons such as illness, education, marriage, or job changes must be processed within the prescribed time limit.
What to Do If You Are Not Getting These Benefits
EPFO has stated that exempted establishments are expected to provide better services and facilities to employees.
If an employee feels that their rights are being ignored, they should first raise the issue with their employer or the Board of Trustees.
If the problem is not resolved, employees can contact the Regional Provident Fund Commissioner (RPFC) through email or file a complaint on EPFiGMS, the official EPFO grievance portal.
EPFO has advised all members to stay informed about their rights and make full use of the social security benefits available to them.