how reliable is EPF in the long run, till I retire?

POSTED BY nsabhyankar ON September 20, 2012 10:58 am COMMENTS (5)

I am 27 years old. I know a private company where the finance officer usually dissuades employees from having an EPF account. He says that he has audited their work and knows how they function. He also says that there is a good chance that you may not get anything back after all when you need it. A few people I have discussed this with, also said that the government does not have the money to pay out. Is there a grain of truth in this? Should one keep away from EPF because of this reason? What are the alternatives if a person does not wish to go for EPF? 

5 replies on this article “how reliable is EPF in the long run, till I retire?”

  1. says:

    Hello Abhijit,

    What you have said is right: “EPF account is not in place & your company is avoiding it”.

    A number of employees do not have an EPF account (for many of them, its their first job, so not even the chance to continue a previous account)

    I will have to dig out more but want to confirm if there is any grain of truth in the company’s stand!

    1. Dear Nsabhayankar, once EPF is opted by employee, a lot of formalities, rules & regulations ‘ll be there in place for your employer to follow. To avoid all this, your employer or should I say account people of your organization are misleading.

      Till the time your money deducted by your employer but not deposited in EPF, it’s unsafe but once it’s in EPF, there is no problem regarding the safety of your capital.

      Actually the problem is from employers & not from EPFO.



  2. Abhijit says:

    EPF organization scheme is one of the largest social security organizations in the world in terms of the number of covered beneficiaries and the volume of financial transactions undertaken so there is no question of believing it or not for majority. However there might be a problem with the functioning of any ‘XYZ’ company so as to create problems for the same.

    If you are sure your EPF account is in place & working I do not think there is any chance to worry. Your financial officer is misleading by saying not to believe on EPF.

    If company is not deducting money for EPF that means your EPF account is not in place & your company is avoiding it (don’t know why?).

    I insist to dig more on this matter in your company so as to know what’s wrong?

  3. Dear NSAbhayankar, if your employer is deducting money for PF but not depositing it into EPFO, there is a serious chance of loss of your basic fund forget any addition in it. Please do check with your employer if it’s offering NPS in place of PF?



    1. says:

      Hello Ashal,

      Thanks for your reply.

      I guess I need to be more precise in the question.

      Here are a few details. I hope it helps:

      The company is NOT deducting any money for EPF.

      In fact, they are advising the employees to not have an EPF account in the first place.

      The finance officer says that EPF itself is not reliable and they may not be able to return your money.

      An employee has to insist if he or she wants to have an EPF account. Once you have an account the company does deposit the money in it.

      I would like to know if it is true that EPF may not have the money to pay us back.

      Please let me know if any other details are needed.

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