If you encounter issues with the UMANG application: how to check your EPFO statement and receive funds

If you are starting work for the first time and can receive an incentive from the government of up to ₹15,000, this will be a very favorable situation. This bonus may be available to those who begin their career and become members of the Employees' Provident Fund Organisation (EPFO) under the Pradhan Mantri Vishwakarma Rozgar Yojana (PM-VBRY).

However, receiving an incentive of up to ₹15,000 will not happen automatically just by getting employed. A series of conditions must be met, including membership in EPFO, length of service, and compliance with certain requirements. Below is a detailed explanation of who is eligible for this scheme, what the payment amount is, and what steps need to be taken to receive the funds.

According to the PM-VBRY, qualified employees who become EPFO members for the first time may receive an incentive equivalent to one month's EPFO salary. The maximum limit of this incentive is ₹15,000. It is not guaranteed that every employee will receive the full amount of ₹15,000; the actual amount is determined based on the qualified salary and the plan's conditions.

The benefit under the first part of the plan, known as Part A, is intended for qualified workers who become EPFO members for the first time. An important point is whether the employee has a previous record of EPFO membership. To fall under the scope of the plan, the monthly salary must be up to ₹100,000, and other conditions related to employment and EPFO must also be met.

PM-VBRY covers qualified jobs created between August 1, 2025, and July 31, 2027. Nevertheless, simply starting work during this period is not enough. The employee must meet the plan's requirements, and the employer must also complete the necessary EPFO procedures.

To receive the first installment, the employee must work continuously for six months. Furthermore, they must comply with EPFO membership requirements and other eligibility criteria under the plan. Therefore, it is useful to monitor the start date, UAN-related records, and information about contributions made to EPFO.

For the second installment, continuous employment for 12 months is required. In addition, the employee must complete the prescribed financial literacy program. Thus, one year of work is not enough to automatically receive the second installment; one should check the latest information on the program completion process and its confirmation on the official portal.

It is not mandatory. According to the plan's provisions, the second installment funds will be placed in a suitable savings instrument or a fixed deposit for a certain period. Consequently, it cannot be considered immediately available cash. It is crucial to understand the rules regarding the payment and placement of the second installment funds.

The incentive will be transferred to a bank account linked to Aadhaar via the Direct Benefit Transfer (DBT) mechanism for the qualified employee. The Aadhaar bridge payment system will be used for this. Therefore, the employee should ensure that their Aadhaar and bank account details are correct. Errors in bank account and Aadhaar information may affect the payment process.

Yes, qualified employers may also be provided with an incentive under the plan. This amount differs from the benefit received by the employee. According to the plan's terms, the employer can receive up to ₹3,000 per month for each additional qualified employee. For this, the company must meet the eligibility conditions and submit the necessary EPFO records and electronic tax returns.

If you have become an EPFO member for the first time, first check your Universal Account Number (UAN) and EPFO membership record. Then, ensure that the details of your Aadhaar-linked bank account are correct and that the employer is making contributions to EPFO. Monitor the deadlines for completing six and twelve months of work. Also, check the official portal for the financial literacy program procedure for the second installment.

For working individuals, it is just as important to invest funds correctly as it is to save money for retirement. If you regularly contribute to the Employees Provident Fund (EPF), you can increase your savings through the Voluntary Pension Fund (VPF). Under this program, employees can contribute an amount in addition to the mandatory contribution to the PF. Currently, the EPF yields an annual interest rate of 8.25%. However, before increasing investments in VPF, it is necessary to understand tax issues, withdrawal periods, and whether this option meets your financial needs.

What is VPF and how does it work?

The Voluntary Pension Fund is a voluntary savings scheme linked to the Employees Provident Fund. Employees have the option to contribute more than their standard PF contribution. This allows for an increase in the total amount accumulated for retirement. The advantage is that the money is automatically deducted from the salary and deposited into the PF account, eliminating the need for additional monthly investments. Nevertheless, the main goal of VPF is long-term savings accumulation for retirement, not achieving high profits in a short time. The same interest rate as for EPF, set by the government, is applied.

Who might benefit from VPF?

VPF is particularly useful for employees who aim for regular long-term savings and do not wish to invest a significant portion of their savings in schemes dependent on stock market fluctuations. It may be interesting for employees who hold large sums in Fixed Deposits (FD), as one can compare the potential return of VPF with the return of FD after taxes, while considering the withdrawal conditions and tax rules of both instruments. VPF is also considered by employees approaching retirement, such as those aged 40 or 50, who want to regularly top up their fund, although the decision must be made considering the remaining time until retirement, current savings, and future expenses. Furthermore, for those who find it difficult to manage monthly personal investments, the automatic deduction of funds into VPF can help establish a saving habit. However, it should be remembered that if you have expensive debts, lack an emergency fund, or require large sums in the near future, these more pressing issues must be addressed first.

What does the limit of ₹2.5 lakh mean?

Before making additional contributions to VPF, it is important to understand a key tax rule. If both the employee and the employer contribute to the PF, tax on the interest related to the total annual employee contribution to EPF and VPF may exceed ₹2.5 lakh. This tax is not applied to the entire additional amount but to the interest associated with it according to established rules. It is important to note that the ₹2.5 lakh limit applies only to the employee's contributions and does not include the employer's contributions. If the employer does not make contributions to the employee's PF, a separate limit of ₹5 lakh may apply to the interest on the employee's contributions. The annual limit of ₹2.5 lakh is equivalent to approximately ₹20,833 per month. Nevertheless, the actual calculation must be based on the employee's total contribution for the entire financial year. The mandatory EPF contributions and the amounts contributed to VPF must be summed up to determine if the limit has been exceeded.

How is the tax calculated with an example?

Suppose the employee's total contribution for the financial year was ₹3 lakh, exceeding the ₹2.5 lakh limit by ₹50,000. This does not mean that tax will be levied on the entire ₹50,000. The tax calculation will be done according to the rules, based on the interest related to this additional contribution. Assuming the maximum employee tax rate is 30% and the interest rate is 8.25%, the post-tax return could be around 5.78%. This is an approximate calculation that does not include fees and other applicable factors. The actual tax will depend on the employee's status and prevailing regulations. Therefore, before contributing additional funds to VPF, one should not only look at the announced interest rate; one must understand what amount may be subject to taxation.

Are there tax benefits on funds contributed to VPF?

Automatic tax benefits on funds contributed to VPF are not provided. The benefit in the form of a deduction for the contribution depends on the chosen tax system and the relevant conditions for the employee. Therefore, before increasing investments, it is necessary to find out which tax system you report under and what deductions are available to you. It is important to distinguish between the tax on interest related to contributions and the deductions received at the time of investment; these two aspects should not be confused.

When can funds be withdrawn from VPF?

VPF funds are part of the EPF account, so they cannot be withdrawn at any time, like from a regular savings account. To withdraw funds, one must consider the current EPF rules, eligibility criteria, length of service, and reason for withdrawal. In October 2025, the Central Council of Trustees of the Employees Provident Fund (EPFO) approved a simplification of partial withdrawal rules and set the minimum service period for eligibility at 12 months. This structure provides for various needs, such as illness, education, marriage, housing, and special circumstances.

Changes have been made to the rules of the Employees' Provident Fund Organisation (EPFO), which establish limits for withdrawing funds from pension savings (PF) to cover various needs, including housing expenses and special circumstances. These new guidelines clarify how often members can use their PF savings for different purposes.

EPFO has issued updated recommendations for advance withdrawals, dividing them into three categories: urgent needs, housing requirements, and special conditions. Separate restrictions on the number of transactions a member can make have been set for each category.

In the case of educational expenses, a member is entitled to withdraw funds up to 10 times during the term of their membership in EPFO. This provision applies to both the member and their family members.

Under the first category, which includes urgent needs, PF members can withdraw funds for themselves and their families to cover medical expenses and treatment without a set limit.

To cover wedding expenses, a member can make no more than five withdrawals during their membership period. This rule also applies to family members.

Construction or purchase of a house, as well as refinancing and renovation of residential property fall under the housing needs category. According to the guidelines, a member can withdraw funds for housing purposes no more than five times during their membership in EPFO. Furthermore, according to the third category, withdrawals from PF can occur no more than twice a year.

These provisions allow members to use their pension savings to meet important housing expenses while limiting the frequency of such withdrawals.

EPFO has reported that an employee can withdraw 75 percent of their pension savings amount 12 months after joining EPFO, and this amount can be received including interest. This measure is provided to employees for financial support so they can avoid any difficulties.