Provident Fund (PF)
The Employees' Provident Fund is a mandatory retirement savings scheme under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952. Both the employee and employer contribute monthly. Omnivoo manages all PF registrations, contributions, and filings.
How PF Works
Every month, two contributions are made:
| Contributor | Rate | Basis |
|---|---|---|
| Employee | 12% of Basic | Deducted from salary |
| Employer | 12% of Basic | Part of CTC (not deducted from salary) |
Both contributions are calculated on Basic Salary, capped at ₹15,000/month for the pension (EPS) portion.
Where the Money Goes
The employer's 12% is split between two sub-accounts:
| Fund | Rate | Purpose |
|---|---|---|
| EPF (Employee Provident Fund) | 3.67% of Basic | Retirement savings (earns interest) |
| EPS (Employee Pension Scheme) | 8.33% of Basic (on max ₹15,000) | Pension after retirement |
The employee's full 12% goes to the EPF account.
Example: Employee with Basic Salary of ₹50,000/month:
| Calculation | Amount | |
|---|---|---|
| Employee EPF contribution | 12% of ₹15,000* | ₹1,800 |
| Employer EPF contribution | 3.67% of ₹15,000* | ₹550 |
| Employer EPS contribution | 8.33% of ₹15,000* | ₹1,250 |
*Contributions are capped at ₹15,000 Basic for statutory minimum. Some companies opt for higher contributions on actual Basic -- check your payslip for the exact amount.
EPF currently earns interest at approximately 8.25% per annum (rate set by EPFO annually). This interest is tax-free up to ₹2,50,000 of annual EPF contributions.
UAN (Universal Account Number)
Every PF member gets a UAN (Universal Account Number) -- a permanent, portable PF ID:
- New employees: If you do not have a UAN, Omnivoo creates one during onboarding.
- Existing UAN: If you already have a UAN from a previous employer, provide it during onboarding. Omnivoo transfers your PF account under the same UAN.
- EPFO member portal: Track your PF balance at unifiedportal-mem.epfindia.gov.in.
Always keep your UAN linked to your Aadhaar and bank account. This makes PF withdrawal and transfer faster when you change jobs.
ECR Filing
Omnivoo files the Electronic Challan cum Return (ECR) with EPFO every month:
- By the 15th of each month, Omnivoo deposits PF contributions for the previous month.
- The ECR includes employee-wise contribution details.
- EPFO processes the ECR and credits individual PF accounts.
- Employees can verify credits on the EPFO member portal within 3-5 business days.
PF Withdrawal
You can withdraw PF in these situations:
| Situation | What You Can Withdraw |
|---|---|
| Retirement (age 58) | Full EPF + EPS pension |
| Unemployment (60+ days) | Full EPF balance |
| Home purchase | Up to 90% of EPF balance (after 5 years of service) |
| Medical emergency | Up to 6 months' Basic from EPF |
| Marriage | Up to 50% of employee's share from EPF |
| Education | Up to 50% of employee's share from EPF |
Withdrawing PF before 5 years of continuous service makes the employer's contribution taxable. The interest earned also becomes taxable. It is generally better to transfer PF when changing jobs rather than withdrawing.
PF Transfer When Joining Omnivoo
If you had a PF account with a previous employer:
- Provide your existing UAN during onboarding.
- Omnivoo initiates a PF transfer request online.
- Your previous employer approves the transfer.
- The balance is transferred to your new PF member ID under the same UAN.
- Transfer typically takes 15-30 days.
For Employers: PF Compliance
Omnivoo handles all PF compliance:
- Monthly ECR filing and contribution deposit
- Annual PF returns
- UAN generation and management
- Transfer requests for new joiners
- PF settlement for exiting employees
Employers do not need to interact with EPFO directly. All PF costs are included in the employee's CTC.