Provident Fund guide: What are EPF, VPF and how to check your PF passbook

Provident Fund (PF) is a one of most important long-term savings and retirement option which is subscribed by millions of salaried employees. Contributions made through the Employees' Provident Fund (EPF) helps in building a retirement corpus while earning a interest rate decided by the government.

Apart from EPF, employees can also choose to make additional contributions through the Voluntary Provident Fund (VPF). Keeping a track of these investments is easier through the PF passbook, which gives a snapshot of the deposits, interest credits and account balances. Here's what you need to know about EPF, VPF and PF passbooks.

How does EPF work?

In this savings scheme, an employee contributes 12% of their basic salary and dearness allowance (DA), while the employer makes a matching contribution. But, the employer's share is split between the EPF account and the Employees' Pension Scheme (EPS).

For example, if your basic salary is ₹40,000, then your contribution to PF is ₹4,800. Your employer's contribution will be nearly ₹1500 while rest of the amount will be put in EPF . So the total money going into your provident fund is ₹6,300, which will keep growing with interest until you withdraw it.

EPF deposits current earn an annual interest rate of 8.25% per annum. EPF interest, once credited, will appear in your EPF balance and passbook. Members can check their balance through:

• UMANG App
• EPFO Member e-Sewa portal
• Missed call on 9966044425 (for UAN-linked mobile numbers)
• SMS EPFOHO UAN < LAN > to 7738299899

Subscribers must also ensure that their UAN is active and linked with Aadhaar, PAN and bank account details for accessing the required information.

How does VPF work and who should subscribe?

VPF is also a government-backed investment scheme for salaried employees over and above the EPF with low risks and high returns. While EPF restricts employee contribution to 12%, VPF allows maximum contribution of up to 100% of basic pay and DA. Employers are not obligated to contribute to VPF.

EPF and VPF have the same interest rate of 8.25% per annum. VPF can be a viable investment option if you want to save more without extra effort and prefer stable and low-risk returns. You can also choose this option if you are not comfortable with market-linked investments.

What is the PF passbook and how to download it?

A PF passbook is an online record of all transactions in an EPF account. Similar to a bank statement, it helps members track contributions made to their EPF account and monitor the growth of their retirement savings over time. Employees can access their PF passbook online using their UAN.

The passbook contains details such as:

• Monthly employee contributions
• Employer's contribution
• Interest credited to the account
• Total PF balance

Steps to download PF passbook on EPFO portal:

• Go to the official EPFO website
• Navigate to the “our services” section, click on “for employees” and then select “Member Passbook”. Log in using your UAN and password.
• Once logged in, you will be able to able to see your passbook under the name “Select Member ID”. Click on the desired Member ID to view and download the passbook in PDF format.

A member must check your PF passbook occasionally and ensure their KYC details are correct to avoid facing any issues while withdrawing funds from EPF.