The Employee Provident Fund (EPF) is a government-backed retirement savings scheme managed by the Employees' Provident Fund Organisation (EPFO). Both employer and employee contribute to the employee's retirement corpus.
Applicability
- Establishments: 20 or more employees
- Employee Eligibility: All employees with basic + DA up to Rs. 15,000/month (mandatory)
- Voluntary: Employees earning above Rs. 15,000 can opt-in
Contribution Breakdown
| Component | Employer | Employee |
|---|---|---|
| EPF | 3.67% | 12% |
| EPS (Pension) | 8.33% | - |
| EDLI (Insurance) | 0.50% | - |
| Admin Charges | 0.50% | - |
| Total | 13% | 12% |
Benefits
- Retirement Corpus: Accumulated savings with interest (currently 8.15% p.a.)
- Tax Benefits: Contributions eligible for Section 80C deduction
- Pension: Monthly pension under EPS after 10 years of service
- Insurance: Life insurance cover under EDLI (up to Rs. 7 lakhs)
- Partial Withdrawal: For housing, medical, education, marriage
Universal Account Number (UAN)
Every employee gets a unique 12-digit UAN that remains constant throughout their career, even when changing jobs. PF accounts from different employers are linked to this UAN.
Due Date
EPF contributions must be deposited by the 15th of the following month.
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