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Provident Fund


About Employees' Provident Funds

Most Beneficial and popular investment/savings scheme – Salaried Persons in India (REF 5)

EPF Organization includes 3 schemes: (REF 1 & 4)

  • Employees’ Provident Funds Scheme 1952 – Accumulation + interest upon retirement, resignation,  death. Partial withdrawals allowed.
  • Employees’ Pension Scheme – Benefit retirement, permanent total disablement, superannuation  pension or death.
  • Employees’ Deposit linked Insurance Scheme – Providing life insurance benefits Came into

existence with the endorsement of the Employees’ Provident Funds Ordinance on the  15th November, 1951. (REF 4)

Now referred as the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 (REF 4)

Act to provide for the institution of provident funds for employees in factories and other establishments  (REF 1)

What is the Act?

  • Compulsory Contributory Fund for employee’s future – (can receive after retirement or by nominee  in case of death)
  • Managed under Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, by  Employees’ Provident Fund Organisation (EPFO).
  • Act has amended 15 times till now (REF 5)
  • EPFO in under administrative control of Ministry of Labour and Employment
  • EPF Scheme – Employee and Employer has to pay equal amount
    • Employer – 12% of basic salary (Pension Scheme – 8.33% & Provident Fund – 3.67%)
    • Employee – 12% of basic salary (Provident Fund – 12%)
  • Establishments > 20 employees – PF deduction rate would be 10%
  • Later employee gets a lump sum amount (includes his & employer’s contribution)
  • Any salaried employee who is a resident of India is liable for this scheme right from the first day  of his/her joining to any job

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