Form 11 The Complete Guide

Form 11 The Complete Guide: What precisely is the EPF scheme? EPF is a pension insurance scheme where both the Employer and the worker pay a percentage of their income.

Who is Qualified To Participate in the EPF scheme?

Employees must enter the EPF scheme if their monthly wage is below or equivalent to Rs 15,000, as per the EPF scheme guidelines.

Nevertheless, if an employee’s net income overlaps 15,000, in that case, they can access the EPF scheme if they and their respective Employer agree with the authorization of the Assistant PF Commissioner.

Should My Company Pay to My EPF Account as well?

Actually, yes, the company has to donate to the fund compulsorily. Thus, according to existing EPF guidelines, an employer must also allocate to his or her contractor’s account.

An individual is expected to contribute 12 percent of the overall employee’s wages. In this, the basic salary is accompanied by a dearness allowance and a retaining allowance.

Will one continue to contribute to EPF after the end of their career time duration, i.e., they retire or resign?

According to the EPFO, an employee who ceases working cannot donate to their EPF account. The Employer’s contribution must always balance any donation made by the member.

What are the EPFO Interest Rates?

According to the latest official EPF India website, the current annual interest rate on EPF is 8.55 per cent for the fiscal year, up from 8.65 percent the previous fiscal year.

Annually, the EPFO’s Central Board of Trustees, in cooperation with the Ministry of Finance, evaluates the EPF interest rate for the fiscal year.

In the event of an emergency, EPF interest rates have sometimes been elevated to 8.65%.

However, the CBT must first be accepted, after which the ministry of finance must authorize the recommendation.

What is the Form 11?

The EPF Form 11, also known as the Composite Form, is a declaration that a worker may submit with their current Employer to register personally identifiable Information, including the Aadhaar number, bank account records, etc.

• The new yet seasoned employee can give subtleties of their EPF account at the past association by filling out this new Form 11, declaring their required credentials at the hour of hire.
• Employees informal employment that do not have an Aadhaar number should file Form 13 to have their EPF relocated to their current accounts when they shift jobs. But nevertheless, in all online automatic transfer applications, Form 11 should be used instead of Form 13.
• On an average annual basis, EPFO receives approximately one crore multiple variations of PF claims. These incorporate EPF removal, mortality lawsuits, retirement fixation, and PF transition claims.
• EPFO right now has in excess of 4 crore subscribers and oversees reserves worth more than Rs.10 lakh crore. EPF Transfer claims account for about 10-15% of all claims documented. The EPFO urges subscribers for the utilization of the online office to make funds move into their new PF accounts when they swap

What is the Role of Form 11?

• On the off chance that the current hire has been a member of the EPF Scheme, the worker will keep on getting PF benefits, yet they will be assigned a new Member ID.
• If the new hire is not a part of the PF Scheme and earns more than Rs.15,000 per month, they will be given an opportunity to choose whether or not to commit to EPF/EPS (Employees’ Pension Scheme).
• It is also likewise used to instantly shift an individual employee’s PF from one account to another.

Form 11 also allows the PF Department to keep an out-and-out and detailed information base containing significant workers’ significant subtleties, accordingly helping them during reviews, reviews, cross-checking, fact-checking, and authentication.

When registered in the PF Program, the organization cannot exempt the employee from it. However, it is conceivable if the organization isn’t enrolled under the PF Scheme.

Form 11 Must Contain the Following Details

At the point when you fill Form 11, it will incorporate the accompanying Information:

Personal Credentials of the Employee

• Name of the employee
• Date of Birth of the employee
• Name of the father or the spouse
• Gender
• Marital Status
• Registered Mobile number
• Email ID
• Educational qualification
• KYC details include details like the bank account number, Driving license/election card, etc.

Information About the Former Employer

• If the Employer was formerly a participant of the Employee’s PF Scheme or the EPS
• UAN details
• Previous PF or PF Account Number
• Last day of work from the previous job in dd/mm/yyyy format
• Scheme Certificate Number in case it has been issued
• Pension Payment Order (PPO) Number in case it has been issued

International Workers Need To Provide The Accompanying Subtleties

• Origin country
• Passport Number
• Passport Validity

The relevant documents are required with Form 11 (self-attested copies) by a new employee

• Bank Account and IFSC
• Aadhaar Number
• PAN Number

In the case of Form 11, the following Submission Procedure must essentially be adopted.

After completing Form 11, the concerned employee must submit it to the Employer. The Manager checks the form and subsequently signs it, and places the stamp on it.

The Employer would then consequently forward this form to the regional EPF office.

However, this PF move is made a lot simpler in the event if the Client has a UAN, and the concerned authorities can complete the transfer process online.

Procedure to be Followed for Online PF Transfer

The EPFO has also adopted the UAN or Universal Account Number system, a convenient PF account number that stays as before for the entire career period of an employee.

• In the wake of joining another association, an individual must fill out and apply the Composite Declaration Form 11, which includes personal information. The new hire likewise needs to type their UAN and mention the previous PF account number.
• To begin, the Employer must enter the details in Form 11 into the official Employer’s portal.
• The Information is then approved with the Information available against the UAN, and in the event of any disparity, the Employer must confirm or update the Information provided.
• Assume the previous UAN was cultivated with Aadhaar and confirmed. In that case, the Client’s declaration of the employee’s permanent transfer in Form 11 will start the auto-transfer process. The amount recorded in the existing PF account will be credited to the updated PF account.
• On their registered mobile number, the concerned employee will get an SMS giving Information with respect to the auto-transfer proposed on their enrolled mobile number.
• Solely after the participant confirms and does not demand to postpone the requested auto-transfer (either online, via Employer, or at the nearest EPFO office) within ten days of the SMS, the first donation the current Employer is deposited and reconciled, will the auto-transfer be done.
• Just after the account has been moved, the authorities will convey the worker the equivalent through an SMS on their enlisted mobile number and by email seeded with the UAN.

The auto transition of PF account to former Employer will be conceivable just regarding workers who have their Aadhaar updated and validated.

• Under circumstances when the previous UAN was not seeded with Aadhaar or the Aadhaar seeded but not confirmed, the concerned employee needs to apply for transfer in Form 13. The current protocol for the transfer procedure will be followed.

New and updated EPF Composite Declaration Form (new Form 11)

The EPFO has concluded that in all cases of EPF auto transition, the current composite declaration form (F-11) will now substitute the initial Form 11 and Form No 13.

Companies can even use the revised EPF declaration form – 11 to gather document information from their workers and the instance of EPF automatic transition statements.

Assume that the employee’s UAN has been Aadhaar seeded and authenticated.

In that case, the Employer’s declaration in Form-11 for the employee’s transfer request would activate an auto-transfer mechanism that will switch the accumulations toward their former EPF Member-ID to the New PF Member-ID.

When an employee enters a new corporation, they must essentially fill out a new Form 11 form mentioning the following Information:

• Name of the employee, name of the guardian, date of birth, gender, marital status, and valid contact information.
• The employee should also upload the KYC details like – Bank account number, IFSC code, Aadhaar number & PAN.
• The employee must mention the date of joining the new company.
• Consider a situation under which an employee was formerly working in another company and consequently contributed to the EPF system.
• In that case, the employee must incorporate Information about their former jobs, such as the company name, the UAN details, EPF account (Member-ID), date of joining, date of resigning etc. By carrying out this step, the chances of the assignment of multiple UANs to a single employee is reduced.
• The employee must acknowledge and sign and return the declaration document to the current Employer.

The Manager will then issue their certification (authorization) information and take the appropriate measures to facilitate the automatic transfer of any existing employee’s EPF account.

When the first invoice for the said new worker is generated from the present Workplace against the UAN flagged for auto-transfer, an auto-transfer would be implemented.

If the transfer is activated, the participant will receive an SMS and an email to the registered email address and mobile number.

What is the Distinction Between a PF Number and a UAN?

The PF number, also known as the Member Id or Member Identification Number, is the identification number assigned by EPFO to authorize the Employer to transfer the employee’s EPF funding money.

It seems as though the company maintains an EPF account for its workforce and pays to it on a monthly basis.

Member ID is an individual employee’s EPFO account number.

Once an employee switches jobs, the current company should create a new account number in EPFO for the said employee.

As a consequence, the individual will be issued a particular Member ID. The member ID will be the same as the PF number defined previously. As a consequence, you’d get as many Member IDs as the number of employers who donate to EPFO at your behest.

An employee owns a single UAN, or Universal Account Number, which will remain unchanged, as the title suggests.

Then this UAN will keep a record of all the other Member IDs. It’s as though you may have countless Savings Bank accounts, but they’ve all been linked to a singular Permanent Account Number or PAN.

Therefore, if an employee finds another job and their current Employer commits to EPF, the newly hired employee will indeed be issued a particular Member ID. This new Member ID should always be associated with their unique UAN number.

How Can One Cancel an Auto-Initiated PF Transfer Claim?

The member can request to stop the auto-initiated transfer in two ways-

• Via the online mode. For carrying out the online method, the Client will have first to visit the online portal. Then the Client will have to opt for the “Stop Auto Initiated Claim Cases” option available in the “Track Claim Status” link under the “Online Services” tab.
• Suppose the Client wants to carry out in an offline mode. In that case, the Client must decide on approaching the nearest EPFO office within an outer limit of 10 days on receiving SMS, informing the member of auto initiation of the transfer request.

If neither participant requests to interrupt the auto-initiated transfer against a specific UAN even within the prescribed predefined timeframe of 10 days, the auto EPF transfer claim will be verified.

In the event that the Client’s existing EPF account wasn’t even Aadhaar authenticated, the concerned Manager can initiate an offline/physical transfer of the employee’s PF funds.

Bear in mind that auto-transfer of former PF records is only applicable for Aadhar authenticated employees.

Under the Following Situation

• the Client’s earlier UAN was not seeded with Aadhaar (or)
• UAN was successfully Aadhaar seeded but not authenticated (or)
• In case of EPF transfer from or to an exempted company

The individual then must petition for transfer in Form-13 in accordance with the requirements protocol for physical transfer (form 13) for account transfer from the previous institution.

KYC Details That Need To Mention

KYC, or Know-Your-Customer, is the process of examining the customers’ credentials for authentication purposes. When the EPFO states that the employee must always update KYC data, it really is pointing to the confirmation of its members or subscribers.

Documents such as PAN cards and Aadhar cards may be used for authentication.

KYC Norms for the Employer

• The certification from newly joined hires is accessed as Form 11 and uploaded to the UAN portal by an employer.
• Form 11 is often used to designate an employee through both the provident fund and the company pension scheme.
• For Staff members who might not be qualifying for PF, it also expected for them to complete Form 11. This is for government documentation purposes that concerned authorities can see in the event of an investigation.

There can be two choices for a new employee starting in the organization:

• The current recruit has no prior PF membership; in this circumstance, the Employer must recognize the new member in order to make way for the EPFO to allocate a Universal Account Number (UAN) to the concerned employee.
• If the current recruit has previously held a PF membership, the concerned Employer should connect the existing member ID to his UAN. In extension, a request for the transition will be automatically created. This auto-request generation is attainable only if the current Employer has authenticated the particulars seeded with the UAN with his electronic signatures.
• The UAN should be distributed to all members by the Employer.
• The Employer must have his workers activate the UAN within 15 days of it being issued.
• It is the responsibility of the members to upgrade their KYC within one month of acquiring their UAN in order to use the benefits.

Things To Keep In Mind In Regards To KYC

• It is necessary to make sure that KYC scheduling and UAN authentication are accomplished for all current, collaborating attendees.
• It is important to acquire and submit the departure date in the following scenarios:
• If the UAN is published but not enabled
• If the KYC digital authentication is partial or incomplete
• If contribution is not being accepted
• To keep track of growth, organizations will have to use the database supported by the MIS platform. This website takes into account the following details:
• list of the Members that are presently contributing
• Their UAN allocation and activation status
• The KYC seeding related details
• The website is reviewed each day.
• Every month on the 20th, the due month status is revised. This suggests that as of the 21st of the month, the database contains information from the previous month that is being accounted for the current month.

For example, the timeline as of 21-02-2016 includes data from the “due month” of January 2015, which the concerned payer would have paid in February 2016.