Provident Fund

Employee Provident Fund (EPF) is a retirement benefit scheme provided to employees in India. It is governed by the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, and is managed by the Employees' Provident Fund Organization (EPFO), a statutory body under the Ministry of Labour and Employment, Government of India.

Here are some of the key features and provisions of the EPF scheme

Applicability : The EPF scheme is applicable to all establishments employing 20 or more employees. However, establishments with less than 20 employees can also voluntarily opt for the scheme.

Contributions : Both the employer and the employee are required to make monthly contributions to the EPF account. The contribution rate for the employee is 12% of the basic salary and dearness allowance, while the employer contributes 12% of the employee's basic salary and dearness allowance.

UAN : Every employee enrolled under the EPF scheme is allotted a unique Universal Account Number (UAN). This number remains the same throughout the employee's career and can be used to track and manage the employee's EPF account.

Interest rate : The EPF contributions earn an interest rate which is determined by the government and notified by the EPFO every year. For the financial year 2020-21, the interest rate was 8.5%.

Withdrawals : Employees can withdraw their EPF balance for various purposes such as retirement, illness, marriage, education, house construction, etc., subject to certain conditions and Limitations.

Nomination : Employees are required to nominate a person or persons to receive the EPF balance in case of their death. The nomination can be changed at any time during the employee's career.

Compliance : Employers are required to register under the EPF scheme, obtain a code number, and maintain various registers and records related to EPF contributions and withdrawals. Employers who fail to comply with the provisions of the EPF Act can be penalized and prosecuted.

The EPF scheme is an important social security measure for employees in India, providing financial security and stability after retirement.

The EPF is popularly known as PF. It's a retirement saving scheme for all the salaried employees, is backed by the government on which fixed interest is paid.

 
     
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