Employee Provident Fund (EPF). In India there are many social security schemes in existence among which some are voluntary in nature while the rest are compulsive in nature. In this article we provide complete details for Employee Provident Fund.

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Employee Provident Fund Scheme :

”Provident Fund” is A compulsory, retirement savings scheme managed by government in India and some other countries. provident fund is a form of social safety plan intended in making the working class people to contribute a portion of their salaries and employers must contribute on behalf of their workers. The money in the fund is would be an assistance to retirees, or in some cases to the disabled who cannot earn their bread and meal.

Meaning – EPF :

provident fund was created with a purpose of providing financial security and stability to people at the time when they are no longer can earn their own bread and meal. Generally one has to contribute in Provident fund account when he / she commence his career as an employee in an organization either public or private any sector but his employer should be covered by the statutory provisions of EPF Act. The contributions are made on a regular basis. It’s main motto is to assist employees to save a portion of their salary every month, which in turn can be used for the rescue of employee and his dependents from an unforseen circumstance when the employee is temporarily or no longer fit to work or at retirement.

Key focus is on :

  • 1.medical assistance,
  • 2.retirement,
  • 3.education of children,
  • 4. insurance support and housing.

Administration :

Employee Provident Fund is administered by the “Employees Provident Fund Organisation (EPFO)” of India which is constituted accordingly as said in the statue.

Applicability :

. An establishment with 20 or more workers in any one of the 180+ industries as specified by EPF Act, should register with EPFO. As per the provision of EPF Act 1952 ,12% of the Basic, DA, and cash value of food allowances has to be contributed to the EPF account. Employer also should contribute the same 12% in addition to the administrative charges.


EPF can be further classified into :

1. Employee’s Provident Fund Scheme,

2. Employees’ Deposit Linked Insurance Scheme,

3. Employee’s Pension Scheme.

I will cover about each plan separately in my subsequent posts……

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