21 Jul 2015


The Constitution of India under "Directive Principles of State Policy" provides that the State shall , within the limits of its economic capacity, make effective provision for securing the  right to work, to education and to public assistance in cases of unemployment, old-age, sickness & disablement and undeserved want. The EPF & MP Act, 1952 was enacted by  Parliament and came into force with effect from 4th March,1952. A series of legislative  interventions were made in this direction, including the Employees' Provident Funds and Miscellaneous Provisions Act, 1952.  Presently, the following schemes are in operation under the Act:

Employees' Pension Scheme, 1995 (replacing the Employees' Family Pension Scheme, 1971) and Employees' Provident Fund Scheme, 1952.

All the Public/Private Sector employees, employed not before the commencement of the above schemes, are advised as under :

1. To keep a track of their EPF contributions along with EPS contributions.

2. Never to withdraw their EPF contributions when they change employment.

3. PF account balance  of old employer must be got clubbed with the PF account of new employer so as to retain the EPS account for optimization of the receivable pension at the time of   superannuation/retirement.

4. Maintain your own Mirror Account for EPF and EPS contributions as small missing credits can have a money multiplier effect on the Final PF Balances and receivable PENSION.

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