As a working individual, you might have many financial goals to tick off your list. You want to create wealth and secure your family’s future while ensuring you have a regular flow of income when you retire.

This is where the Employees Provident Fund (EPF) comes into play. The Employees Provident Fund account offers a good interest rate at minimal risk. Along with this, it saves taxes as it comes under the EEE category (Exempt-Exempt-Exempt). It provides insurance and offers pensions. Thus, EPF is one of the best investment planning tools. Not sure how it works? Here’s everything you need to know.

What is an EPF statement?

An Employees Provident Fund statement is a passbook containing the records of employee and company contributions for each month as well as the pension outgo. It also includes any interest credited to the employee’s EPF account. The EPF statement contains various details as follows:

  • Basic details – The Employees Provident Fund statement includes information such as the employee’s name, company name, address, date of appointment, date of birth, company’s establishment ID, etc.
  • EPF account number – It is an alphanumeric code for un-exempted organisations, and it includes the EPF member’s state, regional office, establishment ID, and unique PF code.
  • UAN – Universal Account number is transferable to the next employer. It consists of a 12-digit number and remains the same throughout a person’s life. The UAN number gets linked with the EPF account number.
  • Opening balance– It is the sum of the employee’s and employer’s contributions and interest earnings in the previous financial year. Both the employer and the employee contribute 12 per cent to an EPF account.
  • Monthly contributions – The Employees Provident Fund statement shows the monthly contributions. Both the employee and the employer contribute to the Employees Provident Fund account, where a part of the employer’s contribution goes to the EPF while the remaining goes to the Employees’ Pension Scheme. 
  • VPF – Voluntary Provident Fund is also shown in the EPF account statement. Under the VPF scheme, you can decide the amount you want to contribute from your salary to the provident fund.
  • Accumulated interests – Interest rates on Employees Provident Fund accounts get revised quarterly. The EPF statement shows the interest amount accrued for both contributors and is credited once in a financial year. Withdrawals – The EPF statement online shows the withdrawal amount as well. You can withdraw your EPF at the retirement age or in case of medical or other emergencies; you can withdraw up to 75% of the funds. However, note that you can only withdraw the employer’s contribution after retirement.
  • Closing balance – It is the final amount present, including interest. The withdrawal amount gets deducted from the contributed amount.

Now, let’s understand the procedure for EPF statement download or check your EPF statement online.

How to check your PF statement?

To check your EPF statement online, downloadit by following these steps-

  • Go to the EPF’s website
  • In the ‘Services’ section, select ‘For Employees’
  • Select the ‘Members Passbook’ option
  • Login by entering your Universal Account Number and password
  • Select your Member ID. Then, you can either check your EPF statement online or have the EPF statement downloaded.

Conducting an EPF account balance and statement check is quite convenient and hassle-free. This is also one of the advantages of investing in an EPF account. Here are the ways in which you can check your EPF balance statement –

  • UMANG app – You can use this app to check the EPF account statement and balance. Along with this, you can also use UMANG to file withdrawal requests and track claims.
  • SMS/Missed Call – You can view the EPF account statement by sending a message to 7738299899. Alternatively, you can give a missed call to 01122901406 and view your EPF account statement.

How to make the most of your employees’ provident fund

The Employees’ Provident Fund is an excellent investment option as it acts as a regular source of income after you retire. Along with financial security, it offers you a good interest rate, low risk, and tax exemption. Moreover, you can also conduct a regular EPF account balance and statement check online or have the EPF statement downloaded. This way, you can manage your funds better. Here are a few more ways to make the most out of your Employee’s Provident Fund:

  • You can opt for a Voluntary Provident Fund and contribute more than 12% of your salary to the employee’s provident fund account. This will help you build a solid retirement corpus, more than that of EPF. Thereby, investing in VPF turns out to be a smarter option.
  • Ideally, it would be best to withdraw your Employees Provident Fund balance after retirement. Because the higher monthly contributions can help you reap high returns.
  • During job change, employees need to ensure the transfer of the provident fund. You must ensure funds transfer from the old employer’s account to the new employer’s account. You can check your EPF statement online or download it to keep track of your funds.
  • You must get your Universal Account Number. It simplifies the transfer of employee provident funds from older to new organisations.

To conclude

The Employee’s Provident Fund is a powerful investment tool for retirement planning. Investing in an EPF account can ensure future financial security. Furthermore, it enables you to increase your wealth while generating inflation-beating returns. Thus, it is advisable to invest in an Employees Provident Fund account.

Want to save up for your retirement? Start investing in the National Pension Scheme through Tata Capital’s Moneyfy. Visit the website to know more and download the mobile app today!

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