What is Employees’ Provident Fund (EPF)?
Ans – An EPF is a mandatory retirement savings scheme used in India, Singapore, and other developing nations. These funds also include pension funds provided by employers.
In these Funds a worker/Employee gives a portion of his/her salary to the provident fund (PF Account), and an employer also make a contribution on behalf of the employees in Employee’s PF Account. The money in the fund is kept and handled by the government and ultimately withdrawn by the retirees or their surviving families. In certain cases, a provident fund even pays out in disabled Condition that means employee is not in a condition to work.
Note 1: For Registration in EPFO, Every Company, Firm and Organization with over 20 employees is required by law to register with EPFO.
Note 2: UAN number is 12 digits Number which is provides by Employees Provident Fund Organization (EPFO) to every employee to Shown his all about PF deduction of Employees & and Contribution by employer in Employee’s PF Account.
Note 4: In PF Account, Employee contributes 12% of (Basic Salary + Dearness Allowance +
Note 3: By Using UAN number employee also can withdraw his PF amount by online or offline.
Retaining Allowance) & also Employer contributes from own pocket @3.67% of Employee’s
(Basic Salary + Dearness Allowance + Retaining Allowance).
Note 5: For contribution in PF, Earning (Basic Salary) of Employees should be Less than or Equal to 15000 per month.
Note 6: PF Amount is Tax free funds but withdrawn of PF should after 5 Years. If you want to withdraw PF amount before 5 years then Income tax apply on your PF amount according slab rates of Income tax.
Note 7: Interest rates on PF amount is 8 to 9% per years.
Note 8: Facility of DA (Dearness Allowance) is provided only in Government Company sector.
Contribution Rates in PF by Employer & Employee
Monthly Percentage Contributed (%)
3.67% in PF & 8.33% in EPS