EPFO Full Form: EPFO (Employees’ Provident Fund Organization) is a scheme that was started by the government in 1952 To provide the same facility for workers, employees, etc. As we know for private workers no pension is provided by the company once they pass 60 years according to the rule of government. So many of them have to face a lot of financial problems such as an Accident, marriage of our children or any disease got and so on.
EPFO provides social security and retirement benefits to the employees and helps them to live comfortably after their retirement. In this article, we will discuss EPFO full form, its definition, features, history, advantages, and how EPFO works.
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What is the Full Form of EPFO?
The full form of EPFO is “Employees’ Provident Fund Organization.” EPFO is a government organization in India that manages and administers the Employee Provident Fund (EPF) and other related schemes, which provide social security and retirement benefits to employees in the country.
What is EPFO?
EPFO (Employees’ Provident Fund Organization) was established by the government of India, and the reason behind starting it was to secure & ensure financial and social security for industrial workers and their dependents. This scheme is very useful because, with the help of this scheme, an employer can save one part of his income which he can utilize after retirement until he dies he will get installments every month So that he can survive his life very smoothly and comfortably without any hindrance or if he supposedly died in the middle of his working days then the nominee will be given to his family. This is one of the biggest social organizations in the world. When this was launched mainly focused on rules and regulations of Operational processes. But at the start of EPFO transparency, accountability, effectiveness, and efficiency were weak. Consequently, First and foremost they focused on the security of industrial employees was compromised.
Features of EPFO
- This is one of the biggest world social security organizations in India.
- At the start, it used to focus mainly on the rules and regulations of the Operational processes of EPFO.
- But the transparency, accountability, effectiveness, and efficiency. were weak.
- It used to maintain around 150 million employees’ accounts.
- This scheme allows employees to save funds every month and this amount will be after your retirement, death, or any other accidents that happen to you.
- National banks and their branches are used to help manage and provide the support for collection of funds from member organizations and maintain the accounts of individual employees.
- The EDLI scheme offers economic protection to employees if any accidents happen to them during their employment.
History of EPFO
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EPFO was generally launched in 1952, and the following schemes were launched under it.
- EPF Scheme 1952, (Employees Provident Fund)
- Pension Scheme 1995 (EPS),
- Insurance Scheme 1976 (EDLI)
- It was launched by the government of India.
- EPFO is under the administrative control of the Ministry of Labour and Employment, Government of India.
- In 1976 this scheme was transferred from the Ministry of Labour to the Ministry of Finance, But after some years around 1997, it was again transformed into the Ministry of Labour and Employment.
- At the start when it was launched, it used to manage around 150 million member accounts.
- For Those employees who used to get less than 15 thousand for those employees, Employee Provident Fund Scheme 1952(EPF) was started.
- In the past few years around 2016–17, there were 0.926 million organizations started and 46 million contributing members from 190 industries were enrolled with EPFO.
How does EPFO work?
- Step-1 Employers who are having at least 20 employees first fall have to register with the EPFO. And the important thing is that every employer should have a unique identity.
- Step-2 Now in the second step both the employer and employees have to invest in EPF, which is nothing but a retirement savings scheme. This amount can be 12% or more than it.
- Step-3 Then EPFO invests the amount which is submitted by the employer and the employee in several instruments such as government securities, bonds, and equities.
- Step-4 It maintains each individual account for each employee who has been invested in this scheme.
- Step-5 once the sufficient time is over or simply we can say during retirement you can withdraw your money.
Services offered by EPFO
- As the name suggests, Employee Provident Fund (EPF) is a scheme that receives some part of an employer’s income money and returns with some interest.
- It puts 8.33% of the income of employers then after retirement EPF provides them a monthly pension in each month
- It provides life insurance services. From the beginning, EPFO receives the 0.5% of the employer’s income. If any employee deaths in the middle of the job then that employee’s family will receive the nominee receives a lump sum payment.
- It provides a Universal Account Number (UAN) to each& every employee, which acts as a unique identification number to carry out all transactions.
- It provides a grievance redressal mechanism to all employers to solve the problems they are having.
Advantages of EPFO
- It used to provide the convenience for our employees to deal with any uncertain problem such as medical illness, Accidents, etc.
- The main objective of EPFO is to provide social security to industrial employees who are economically vulnerable.
- THE no. of users in this scheme was 45 million from 2017 to 2018.
- The no. of offices it established from 2017 to 2018 was 533,298. This was the biggest achievement for EPFO.
- These schemes basically help the employees for saving some part of their income which is used to return in retirement, in case of death or accidents, etc.
- This EPFO account was the meaning is that if any employee wants to transfer their account from one employee to another.
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Conclusion – EPFO Full Form
Overall it can be said that it is a good scheme for employees because it helps employees to save their income. Because as nowadays, prices of daily-use commodities are increasing every day. EPFO allows employees to save part of their salary that can help their family in case of medical emergencies and in retirement. Other services of EPFO such as medical and life insurance helps working professionals plan a secured future for their children.
FAQs on EPFO Full Form
What is EPFO full form?
It stands for Employees’ Provident Fund Organization.
What is the EPS scheme?
It is nothing but a pension scheme that the EPFO is managing.
When and why was EPFO launched?
The EPFO was launched in 1952 and the main reason behind starting it is to secure & ensuring financial and social security for industrial workers and their dependents.
How we can check our EPF account?
You can check your EF account details by logging in to the EPFO’s official website or with the help of the UMANG app.
What is full form of EPF?
Full form of EPF is “Employee Provident Fund.