Employees Provident Fund: Who is eligible and non-eligible to be nominee?

The Employees’ Provident Fund Organisation (EPFO) operates India's provident fund and pension fund scheme, through joint contributions from both employers and employees. You receive the lump sum corpus at retirement.

Members can add nominee for their account by submitting the filled Form No 2. For users who have Aadhaar verified UAN, the process can also be completed online. The e-nomination facility is available only from the UAN based login of the member and with OTP sent on your Aadhaar-linked mobile number.

What is eligibility and taxation benefits of EPF?

It allows citizens to open an EPF account if their basic pay and dearness allowance are up to ₹15,000 at 8.25% interest (this quarter). Further, subscribers can choose the voluntary provident fund (VPF) option if basic pay and DA exceed ₹15,000 per month, at same interest.

In terms of tax benefits, annual employee contributions up to ₹1.5 lakh are exempt under Section 80C of the old tax regime. Employers' up to 12% contribution (below ₹7.5 lakh) is exempt under the old and new tax regimes. There is no similar benefit at present under the new tax regime. Further, interest on employees' accumulated contribution is tax-free up to ₹2.5 lakh, while interest on the employer's contribution is tax-free.

EPF nomination: Who is eligible and who is not?

• For male subscribers, eligible nominees are wife, children (married and unmarried), dependent parents, and widow of son and children.
• For female subscribers, eligible nominees are husband, children (married or unmarried), dependent parents, spouse’s dependent parents and widow of son and children.
• Married subscribers are required to add their spouse even if they do not wish to nominate their husband/wife under PF.

• Spouse and children are defined as family for pension fund. So, their names should be added in the family list.
• You will need to submit the Aadhaar copy and photo of the family member.
• Only a member who is not married and does not have spouse or children may nominate any other person irrespective of relation for PF.
• Only a member with no spouse or children can nominate another person for pension.

Can an unmarried member nominate their sibling?

The member has to execute nomination separately for Provident Fund as well as Pension. As per Para 2(g) of the Employees' Provident Fund Scheme, 1952, the "family" means spouse, children, dependent parents and spouse's parents.

As per Para 61(4) of the EPF Scheme,1952, if at the time of making a nomination the member has no family, the nomination can be in favour of any person or persons but if the member subsequently acquires a family, such nomination shall forthwith be deemed to be invalid and the member shall make a fresh nomination in favour of one or more persons belonging to his family.

As per Para 16(5)(a) of the EPS,1995, a member who is not married or does not have any living spouse and/or an eligible child can nominate a person to receive benefits, which means an unmarried member can nominate their sibling for PF and pension.

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