- Date : 14/10/2022
- Read: 4 mins
The EPF nominations can be filled, submitted and processed online. Every working professional must know these steps to apply online.
The Employees' Provident Funds and Miscellaneous Act of 1952's major initiative are the EPF. The EPF is funded by 12% of the employee's base pay and expense account allowances from both the employee and employer. The rate of return on EPF deposits is presently 8.10% p.a.
What is EPF?
The Employees' Provident Fund Organization (EPFO) offers three initiatives with three distinct purposes to encourage working men and women to establish an appropriate retirement corpus. These consist of:
- Employees' Provident Fund (EPF),
- Employees' Pension Scheme (EPS),
- Employees' Deposit Linked Insurance (EDLI) Scheme,
Also read: Why Retirement planning is important.
The Employees' Provident Funds and Miscellaneous Provisions Act of 1952 introduced EPF as its primary initiative. The Employees' Provident Fund Organization (EPFO) administer the programme. Under the EPF program, every employee must make a significant contribution, and the employer also pays a corresponding payment.
At retirement, the individual gets a lump-sum payment that incorporates both their contributions and the employer's deposits, along with interest. The EPF policy regulations state that if an employee's income is less than or equivalent to Rs 15,000 per month, they are required to participate in the EPF scheme. To engage in the EPF scheme, an employee must agree to participate with his or her workplace and acquire the Deputy PF Commissioner's authorization if their pay surpasses Rs. 15,000 per month.
How to file EPF e-nomination?
Employees of the EPF should be mindful that, in agreement with EPFO guidelines, only UAN holders who already have their Aadhaar authenticated may file an electronic nomination. The member's name, date of birth, and gender are verified with his or her Aadhaar while requesting a UAN because Aadhaar authentication is required.
Step 1-Visit the website of the Employee's Provident Fund Organization (link) and log into your account using your UAN and password.
Step 2-Scroll to the 'Manage' tab and click on 'E-nomination'.
Step 3-A tab will be visible to provide one's family details. Click 'yes' against having a family option to update the details of the family.
Step 4-Click on the 'Add Family Details' option to add more family details.
Step 5-Mention the amount of share for the nomination details and click on "Save EPF nomination".
Step 6-Complete the process of e-sign using your Aadhaar-based e-authentication. Your nomination will be successfully registered on the EPF portal.
Also read: Online EPF Transfer Guide.
What are the benefits of filing an e-nomination for EPF?
EPF has been created with the objective of enabling working professionals to generate sufficient retirement capital. EPF members are entitled to submit candidates digitally. In the case of the bearer's death, e-nomination grants the nominee or beneficiaries (spouse, children, and parents) of the EPF account the ability to take out the deposited money.
An EPF member can amend their EPF nominations online through the EPFO UAN platform rather than requesting this from their employer. Members of the Employees' Provident Fund Organization (EPFO) must submit their nomination to be considered for the following advantages:
- Online claim settlements after an individual's death.
In the hard time when one passes away, their family should be able to carry out claim settlements easily and in an efficient manner. Filing an e-nomination ensures that the family will not have to spend time and effort on claiming the settlement.
- Online compensation of PF, pension, and insurance to authorised nominees (up to Rs 7 lakh).
The compensation of PF, pension and insurance can be applied, approved and transferred online rather than visiting a physical office to get the formalities completed.
- Rapid and automated claim processing
Since the process takes place through a software system, it is fast and automated, which removes the possibility of any delays caused due to human intervention.
Also read: EPF and its tax implications
Employee provident fund aims to secure the future of a working professional and ensure that their family's needs are fulfilled in the case of a misshapen. Filing EPF e-nomination makes the process of claiming compensation easier for working professionals and their families.