The central government is considering options to provide comprehensive benefits to the elderly under social security after retirement. Under this, employees associated with the Employees’ Provident Fund Organization (EPFO) can be given the option to convert their PF funds into pension. This will enable employees to get more pension after retirement. It is expected that the government may also make an announcement regarding social security in the budget for the upcoming financial year 2025-26.

Sources reveal that on the instructions of the Central Government, the Ministry of Labor and Employment is already working on options to increase the scope of the social security scheme. Under the new options, many types of facilities will be provided to the workers. Workers associated with EPFO ​​will be able to convert the amount deposited in the PF fund into pension at the time of retirement.

This means that at the time of retirement, if an employee feels that he needs a higher pension in his old age, he can put the money deposited in the fund into the pension fund. This will increase the amount received as pension.

These facilities are also available

1. Interest will be available on PF fund even after retirement

Similarly, if an employee feels at the time of retirement that he has other options of income and he does not want pension on retirement at the age of 58, but wants to start pension at 60-65 or any other age, then this option will also be provided. In such a case, interest will keep accruing annually on the amount deposited in the pension fund and the pension will start being received from the age at which he wants to start.

2. Provision of lump sum deposit in PF account

The ministry wants that EPFO ​​members should be allowed to deposit a lump sum amount in their account in addition to the regular fixed monthly contribution. This option has been under discussion for a long time, but now there seems to be a consensus at many levels.

If such a facility is provided, more contribution will be deposited in the PF account. This will enable employees to keep more funds in their account under social security and get more pension on retirement.

3. Consideration of income tax exemption on additional contribution

The ministry believes that there are many people who have savings but they do not make FDs in banks because the annual interest there is only seven percent or less. Whereas, the interest on the amount deposited in the PF account is more than eight and a quarter percent.

In such a situation, if the facility of lump sum deposit is given, then people will start putting money in EPF account for future security. Sources reveal that discussions have also been held with the Finance Ministry in this regard that it should also give the benefit of income tax exemption limit on such contribution, so that people can be encouraged to put lump sum money as contribution.

4. Consider expanding the scope of IT systems

At present, work is going on to make the EPFO ​​system like banking. IT System 3.0 is likely to be completed in June, due to which people will start getting banking like facilities. Along with this, the government is also working on options related to increasing benefits under social security, which can be announced in the budget or even after that. Regular discussions are going on between EPFO ​​and Ministry of Labor and Employment regarding this.

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Under this, EPFO ​​subscribed employee can get marriage advance from his EPF account for his own, his brother’s sister’s, son’s daughter’s marriage. The most special thing about EPFO’s marriage advance is that the member does not even have to return it.

What are the conditions for marriage advance

• To get marriage advance from EPF account, the member must have completed 7 years of membership in PF fund.
• The amount of his contribution including interest in the member’s PF account should be Rs 1,000 or more.
• The member should not have taken advance for marriage or post-matriculation education more than 3 times. 

If a member fulfills these three conditions, then he can take marriage advance from his PF account. Under marriage advance, the member can get 50 percent of his contribution including interest in his PF account as advance.

Form 31 has to be filled for marriage advance.

EPF subscriber has to fill Form 31 to get marriage advance from PF account. You can fill this form on the EPFO ​​website as well as on the Umang mobile app by entering your required details. Let us tell you that there is no need to attach any kind of certificate along with Form 31 to get marriage advance.

Be careful while filling Form 31

While filling Form 31 for marriage advance, keep in mind that there should not be any mistake in it. Apart from this, you also have to take special care that the information given by you in the form is absolutely correct. It is also very important to check the data coming under auto-fill.

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If you change jobs many times, you get many PF accounts and you have some fund deposited in all of them. But do you know that you can transfer (merge) member employee EPF money from one account to another without going anywhere. Let’s know its process…

step by step process

• You first go to https://unifiedportal-mem.epfindia.gov.in/memberinterface/.
• After that login by entering UAN and password.
• After that you go to Online Services and click on One Member – One EPF Account (Transfer Request).
• Now here you have to verify the personal information related to the current joining and the EPF account.
• After that click on Get Details option.
• After this, you will see the details of the account with the previous job.
• After this, you have to choose between the previous employer and the current employer to attest the online claim form.
• Select it based on the availability of Authorized Signatory Holding DSC.
• Select any of the employers and give the member ID or UAN.
• At last click on ‘Get OTP’ option.
• After this OTP will come on the mobile number registered in UAN.
• Enter the OTP and click on submit option.

You need to submit the self attested copy of your online EPF transfer application in PDF file to the company or institution after 10 days of submission of EPF online application. The company or institution digitally approves the EPF transfer request. After approval, the EPF is transferred to the new EPF account with the existing company.

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What does law say about the pension policy for employees?

In India there is an Act called as The Employees’ Pension Scheme, 1955 which is applicable to all factories and other establishments to which the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 applies. This Scheme is meant for members of the Provident Funds subscribing to Employees’ Provident Fund Scheme, 1952 or any scheme exempted thereunder. The pension policy is introduced as a social policy to the employees to survive their livelihood after the age of retirement. This is a social benefit by which the employees do not need to worry about their sustenance in their later stage of live.

What are the eligibility criteria for availing this facility of pension?

There are two forms of membership availability under the scheme:

• • Membership of the scheme under The Employees’ Pension Scheme, 1955 is compulsory for – All Provident Fund subscribers including those employed in Exempted Establishments contributing to the Employees’ Family Pension Scheme 1971, and – To all new entrants to the Provident Funds Scheme, 1952 from November 16, 1995 onwards, automatically become members of the Employees’ Pension Scheme.

• Membership under the scheme is also available on Optional basis – Existing members of exempted and un-exempted Provident Fund Scheme as on November 15, 1995 who are not members of the Family Pension Scheme, 1971. – Members of the Family Pension Scheme, 1971 who left employment between April 1, 1993 to November 15, 1995 whether they have withdraw their benefits of not. – Beneficiaries of Family Pension Scheme, 1971 who have died on or after April 1, 1993.

What are the benefits available to members under this Scheme?

The benefits that are provided to the members under the Employees’ Pension Scheme, 1995 are:

• Pension Payment for life on Retirement/Superannuation.
• Pension Payment for life on invalidation during employment.
• Lump sum amount payment to the member by way of commutation of Pension upto one third pension amount on optional basis.
• Capital return in option formula basis upon cessation of members pension payment.

What are the benefits available to family members upon death of the member?

The benefits that are provided to the family members upon the death of the member are as follows:

• • Payment of pension to spouse for life or until remarriage.
  • Payment of pension to children (two at a time) till they attain the age of 25 years additionally along with pension payment to spouse. For total and permanently.
  • Orphan Pension to children at higher rate upon cessation of Pension Payment to spouse.
  • To Nominee / Dependant parents for life in case member is unmarried or having no eligible family member.

What are the causes of death that are covered under the scheme for members for eligibility for payment of pension after death?

The scheme covers members death risk unconditionally – irrespective of whether such death occurs:

• While in service.
• Away from employment and not contributing to the fund, or
• After retirement as a pensioner.

Is there a provision facilitating benefits for seasonal or casual employees under the scheme?

 There are following provisions that are specified to facilitate the seasonal or casual employees:

• Employees engaged seasonally in any establishment, the period of “actual service” in any year, notwithstanding that such service is less than a year, shall be treated as full year.
• Pensionable salary will be worked out “Notionally” for full month in the event if drawal of salary for a part of the month.
• Pensionary benefits shall be extended to the members without co-relating compliance by the employer of the establishment

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The Ministry of Labour and Employment, Government of India has, with effect from 1 September 2014, brought into force several important amendments to the schemes framed under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (“EPF Act”) i.e. (i) The Employees’ Provident Funds Scheme, 1952 (“PF Scheme”); (ii) The Employees’ Pension Scheme, 1995 (“Pension Scheme”); and (iii) The Employees’ Deposit-linked Insurance Scheme, 1976 (“Insurance Scheme”).

Key Amendments

PF Scheme

• • The definition of ‘excluded employee’ has been amended whereby the members drawing wages exceeding INR 15,000 per month are excluded from the provisions of the PF Scheme. Accordingly, the wage ceiling for an employee to be eligible for the PF Scheme has been increased from INR 6,500 per month to INR 15,000 per month.

Pension Scheme

• New members (joining on or after 1 September 2014) drawing wages exceeding INR 15,000 per month shall not be eligible to voluntarily contribute to the Pension Scheme.
• The maximum pensionable salary for the purpose of determining the monthly pension has been revised from INR 6,500 to INR 15,000 per month.
• The pensionable salary shall be calculated on the average monthly pay for the contribution period of the last 60 months (earlier 12 months) preceding the date of exit from the membership.
• The monthly pension for any existing or future member shall not be less than INR 1,000 for the financial year 2014-15.

Insurance Scheme

• The contribution payable under the Insurance Scheme shall now be calculated on a monthly pay of INR 15,000, instead of INR 6,500.
• In the event of death of a member (on or after 1 September 2014), the assurance benefits available under the Insurance Scheme has been increased by twenty percent (20%) in addition to the already admissible benefits.

Implications of the Amendments

The amendments to the three schemes by the Government of India, post the proposal made by the Union Minister of Finance in his Union Budget speech (for the financial year 2014-2015), have enhanced the applicability, scope and benefits provided to employees under the EPF Act. However, at the same time, it has also increased the liability of the employers who would now be responsible to enroll additional eligible employees and to contribute on the increased statutory wage ceiling.

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