If you work in a company that manages its own Provident Fund (PF) trust, there’s important news for you.
The Employees’ Provident Fund Organisation (EPFO) has clarified that employees working in EPF-exempt establishments enjoy the same rights and benefits as regular EPFO members.
The organization recently shared information to make employees aware of their rights and ensure they receive all the benefits they are entitled to.
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How PF Contributions Are Managed
When an employee joins an EPF-exempt company, the employer must provide an EPF account number and link it with the employee’s Universal Account Number (UAN).
The employee’s 12% PF contribution is deposited into the company’s PF trust.
From the employer’s 12% contribution, 8.33% is transferred to the EPFO pension scheme (EPS-95), while the remaining 3.67% goes into the company’s PF trust account.
In cases where an employee is not eligible for the pension scheme, the employer’s entire contribution is deposited into the PF trust account.
Rules Companies Must Follow
EPFO has made it clear that companies operating private PF trusts must follow certain rules to protect employees’ interests.
PF Rules Must Be Displayed
Employers are required to display the company’s PF trust rules on the office notice board so that employees can easily access the information.
Employees Get the Benefit of New EPFO Rules
If EPFO introduces any beneficial changes or amendments to its schemes, those benefits must also be extended to members of private PF trusts.
Complete Transparency Is Mandatory
Companies must allow employees to check their PF account details through computer systems and provide a free passbook at the end of every financial year.
PF Claims Must Be Settled on Time
Whether it is retirement, PF transfer after changing jobs, or advance withdrawals for education, marriage, or medical treatment, companies must process these requests within the prescribed time limits.
What to Do If You Are Not Getting These Benefits?
EPFO has advised employees to stay aware of their rights.
If a company fails to provide the required facilities or benefits, employees should first raise the issue with their employer or the Board of Trustees.
If the problem is not resolved, employees can directly contact the Regional Provident Fund Commissioner (RPFC) through email.
They can also file a complaint on EPFiGMS, the official grievance portal of EPFO.
Why This Update Matters
Many employees working in private PF trust companies are unsure about their rights.
EPFO’s latest clarification confirms that these employees are entitled to the same level of protection and benefits as regular EPFO members.
The organization has urged all members to stay informed and make full use of the social security benefits available to them.