The Employee Provident Fund (EPF) is a retirement benefit scheme wherein employees of an organisation (with more than 20 employees) contribute a small portion of their basic monthly income. The employer also contributes a similar amount towards the scheme on their behalf. The PF meaning Provident Fund corpus is generally utilised to fund the employee's retirement. However, under certain circumstances, employees can also choose to partially withdraw their EPF. In the end, the beneficiary/employee receives the total contributed amount along with the interest as decided by the government. The current interest rate is 8.50% p.a.
Employees Provident Fund Organization (EPFO) is a government organisation that maintains the Employee Provident Fund (EPF), a retirement benefit scheme for employees in India. The employee as well as the employer contributes to the EPF scheme in equal proportions, i.e. 12% of the employee’s basic salary and the dearness allowance, on a monthly basis. 8.33% out of the employer contribution to PF goes towards the Employee Pension Scheme (EPS).
|Type of scheme||Retirement fund for employees|
|Intervals for contribution||Monthly|
|Minimum employees required in the organisation||20 or more|
|Contribution amount||12% of the basic monthly salary of the employee|
|Current EPF interest rate||8.50% p.a.|
|Partial withdrawal||Allowed under certain circumstances|
The Employee PF is one of the largest and most popular saving schemes available to the employees in India. The EPF for employees comes with various benefits. Below are the key provident fund benefits:
Employees Provident Fund Organisation provides the following services to mobile users through the Umang app under separate sections:
The rate of interest on EPF is reviewed by the government annually. EPF interest rate for the FY 2021-22 is 8.50% p.a. Once EPFO informs about the interest rate for a fiscal year and the year ends, rate of interest is calculated for the closing balance month-wise and then for the entire year. The year in wherein the new rates are announced stay valid for the next fiscal year, i.e. from the year beginning on 1st April of one year to the year closing on 31st March of the next year.
Below are some important facts about EPF interest rate:
Under the EPF Scheme, the employer as well as employee has to make equal contributions to the EPF account as mentioned below.
|Contributor||Monthly Percentage Contribution|
|Employee||12% or 10%|
There are different EPF forms for different activities that employees want to undertake in their accounts, including registration, withdrawal, transferring PF, availing loans from the existing EPF account, etc.
|Form 2||Declaration & nomination form for EPF & EPS|
|Form 5||New employees registration for EPF & EPS|
|Form 5 IF||Claim as per EDLI scheme|
|Form 10C||Claiming withdrawal benefits or scheme certificate of EPS|
|Form 10D||Claiming monthly pension|
|Form 11||EPF Account Transfer or auto transfer of EPF|
|Form 14||Buying LIC Policy|
|Form 15G||Save TDS on the interest income on EPF|
|Form 19||Final EPF Settlement|
|Form 20||Final EPF settlement in case of employees’ death|
|Form 31||EPF Withdrawal|
The Employees Provident Fund Organisation India provides a grievance system for members to register their complaints. Here is how it works:
For any doubts or discrepancies, you can contact at the following PF Toll Free number: 1800118005
12% of your salary goes towards contribution to PF deduction. Also, 1.75% will be deducted for Employee State Insurance Corporation (ESIC). Women employees can choose provident fund deduction from salary of just 8% of their basic monthly salary for the initial three years.
Employer contribution to PF is 12% of the employee’s basic monthly salary to the EPF. For sick companies or establishments having less than 20 employees, the EPF deduction or contribution rate can be 10%.
The employee contribution to PF and the employer both contribute 12% each of the employee's basic salary towards the scheme.
No. Only employees of the companies registered under the EPF Act are eligible to invest in the EPF or PF. PF contribution of employee and employer is 12% each of the basic salary of employees and dearness allowance each month to the EPF account.
You can withdraw EPF only under the circumstances mentioned below:
PF full form is Provident Fund.