Introduction
Employee’s Provident Fund (EPF) is a retirement savings scheme that is managed by the Employees’ Provident Fund Organisation (EPFO). It is a mandatory contribution from both the employer and the employee towards the employee’s retirement fund. The EPF balance is the amount of money that is accumulated in the EPF account of an employee. The EPF balance is made up of two components – the Employee’s (EE) Balance and the Employer’s (ER) Balance. The EE Balance is the amount contributed by the employee and the ER Balance is the amount contributed by the employer. Both the EE and ER Balances are important for an employee’s retirement planning. The EE Balance is the amount that the employee can withdraw at the time of retirement, while the ER Balance is the amount that the employer contributes to the employee’s retirement fund.
EE Balance & ER Balance Meaning in PF
EE Balance stands for Employee’s Contribution Balance and ER Balance stands for Employer’s Contribution Balance. These are two different components of the Employees’ Provident Fund (EPF) account. The EE Balance is the amount contributed by the employee towards the EPF account, while the ER Balance is the amount contributed by the employer towards the EPF account. Both the EE Balance and ER Balance are maintained separately in the EPF account.
In PF EE balance means “Employee PF Contribution” and ER balance means “Employer PF contribution”, if you sum these two balances then you will know your total PF balance in your PF account.
Every month both employee and employer will pay the PF, employee pays 12% from his basic salary and the employer will also pay 3.67% from their own money. These two amounts will be deposited into the employee PF account.
Here is an example:
| Employee Basic wage | EE Balance 12% on Basic Wage | ER Balance 3.67% on Basic Wage | Total PF Contribution |
| 10,000 Rs | 1200 Rs | 367 Rs | 1567 Rs |
Can We Withdraw EE and ER Balance
Yes, you can withdraw employee share and employer share of PF contributions. There are two ways you can withdraw these amounts.
If you are currently working then you can apply for PF advance by using PF advance claim form 31, and if you have left your job then you can withdraw your total PF amount by submitting PF withdrawal form 19.
The amount of PF advance which you are eligible to withdraw depends on the reason for the PF advance. Whereas if you left your job then you can withdraw full PF after 2 months from your last working date.
EE & ER Balance Withdrawal Limit for Various PF Advance Reasons
| PF advance Reason | Eligible Amount |
| Illness | 6 times of employee basic wage (or) ee balance whichever is less. |
| Outbreak of Pandemic Covid 19 | 75% of total ee+er balance (or) last 3 months basic wage whichever is less. |
| For house construction | 36 times of basic wage. |
| Marriage of self or family members (brother/sister/son/daughter) | 50% of ee balance. |
| No work due to power cut | 1 month’s basic wage. |
| For a physically handicapped person to Purchase their equipment. | 6 times of employee basic wage (or) ee balance whichever is less. |
Can I Transfer my EE and ER Balance to my new PF account ?
Yes, you can transfer booth EE and ER shares online on the UAN member portal. Whenever you change your job then you can transfer your previous company PF amounts to the new company’s PF account (it is recommendable).
How to check EE & ER Balance from Another Phone
You can check your employee and employer PF share from any phone if you have the PF registered mobile number with you, otherwise, you can know your ee & er balance on the EPF passbook portal by downloading your latest PF passbook.
What is Employer Pension Contribution
In the above example, the employer paid only 3.67%, but along with this amount, they will also pay a pension contribution, which is 8.33% on the basic wage of the employee. So overall employers will also contribute 12%.
You can check your pension contribution in the last column of your PF passbook. You can transfer this amount whenever you join a new job (or) you can also withdraw this amount if your total service is less than 10 years.
If your service crosses above 10 years then you will become eligible for a monthly pension after 58 years of your age.
Also Read
EE Balance & ER Balance Meaning in PF
EE Balance and ER Balance are two terms used in the context of Provident Fund (PF). EE stands for Employee’s contribution and ER stands for Employer’s contribution. Both these contributions are made towards the Provident Fund account of the employee.
The Employee’s contribution is the amount that the employee contributes towards his/her Provident Fund account. This amount is deducted from the employee’s salary every month and is deposited in the Provident Fund account. The amount of contribution is usually 12% of the employee’s basic salary.
The Employer’s contribution is the amount that the employer contributes towards the employee’s Provident Fund account. This amount is usually equal to the amount of contribution made by the employee. The employer’s contribution is also deposited in the employee’s Provident Fund account.
The EE Balance and ER Balance are the amounts that are available in the employee’s Provident Fund account. The EE Balance is the amount of money that is available in the account due to the employee’s contribution. The ER Balance is the amount of money that is available in the account due to the employer’s contribution.
The EE Balance and ER Balance are important for the employee as they are used to calculate the amount of money that the employee will receive when he/she retires. The amount of money that the employee will receive is calculated based on the amount of money that is available in the employee’s Provident Fund account.
