The acronym "EPF" stands for Employees' Provident Fund. It is a scheme established by the government of India to provide financial security and retirement benefits to employees working in the organized sector of the country. The EPF is regulated and administered by the Employees' Provident Fund Organization (EPFO), which operates under the Ministry of Labour and Employment.
Under this scheme, both the employee and the employer contribute a certain percentage of the employee's salary to the EPF account, which serves as a long-term savings and retirement fund. The employee contribution rate is fixed at 12% of the basic wage plus dearness allowance, while the employer also contributes an equal amount. These contributions are deposited into the EPF account every month.
The EPF account not only offers retirement benefits but also acts as a saving mechanism during the employment period. It allows the employee to accumulate a corpus that can be withdrawn at retirement or after the completion of a specific service period, subject to certain rules and regulations. In addition to the employee's contributions, the account also earns interest, which is determined by the EPFO each year.
The EPF is aimed at ensuring financial stability, social security, and retirement benefits for employees. It serves as a comprehensive savings and investment tool, promoting financial discipline and long-term financial planning among individuals. The EPFO provides various services and benefits related to the EPF scheme, such as withdrawal, transfer, and nomination facilities, to facilitate easy access and management of EPF accounts.
