Employees Provident Fund(EPF): A Comprehensive Guide to EPF in India

The Employees’ Provident Fund (EPF), often simply called PF, is a cornerstone of social security for salaried individuals in India. This mandatory savings scheme, managed by the Employees’ Provident Fund Organization (EPFO), ensures financial stability post-retirement and during unforeseen circumstances. Let’s delve deeper into the workings of EPF and understand its various components.

What is EPF and who is it for?

EPF is a government-backed scheme applicable to all salaried individuals working in organizations with 20 or more employees in the private sector. It essentially helps build a retirement corpus and provides financial protection against contingencies like job loss or disability.

The EPFO Umbrella:

The EPFO oversees three crucial schemes:

  1. Employees’ Provident Fund Scheme (EPFS, 1952): The core scheme where both employee and employer contribute 12% of the basic salary (including Dearness Allowance) towards a retirement corpus.
  2. Employees’ Deposit Linked Insurance Scheme (EDLI, 1976): Provides life insurance coverage to active PF members.
  3. Employees’ Pension Scheme (EPS, 1995): Offers monthly pension benefits upon retirement to eligible members.

Contribution Breakdown:

Both employee and employer contribute equally to the EPFS, amounting to 12% of the basic salary. However, the employer’s contribution is further divided:

  • 8.33% goes towards the EPS.
  • 3.67% gets added to the employee’s EPF corpus.

Understanding the Key Schemes:

  1. Employee Provident Fund Scheme (EPFS):
  • The cornerstone of EPF, it builds a retirement corpus through monthly contributions.
  • Upon retirement or leaving the organization, the accumulated amount, along with accrued interest, can be partially or fully withdrawn.
  • It serves as a valuable investment tool, offering attractive interest rates compared to other savings options.
  1. Employee Pension Scheme (EPS):
  • Provides monthly pension benefits after retirement for eligible members.
  • Only the employer contributes 8.33% of the basic salary towards EPS.
  • Minimum monthly pension is Rs. 1,000/- (subject to eligibility conditions).

Benefits of EPF:

  • Financial security in retirement: EPF provides a lump sum amount and/or pension income post-retirement.
  • Contingency protection: Offers financial support during job loss, disability, or family emergencies.
  • Tax benefits: Contributions to EPF qualify for tax deductions, reducing taxable income.
  • Long-term investment: EPF offers attractive interest rates, making it a valuable investment tool.

Accessing Your EPF Account:

Members can access their EPF accounts through the EPFO’s online portal or mobile app. This allows them to track contributions, view statements, and initiate withdrawal requests.


EPF plays a crucial role in securing the financial future of millions of Indian salaried individuals. Understanding its intricacies and utilizing its benefits effectively can lead to a more secure and prosperous retirement. Remember, EPF is not just a mandatory deduction; it’s an investment in your future well-being.


Shan is an expert on on Employees Provident Fund, Personal Finance, Law and Travel. He has over 8+ years of experience in writing about Personal Finance and anything that resonates with  ordinary citizens. His posts are backed by extensive research on the topics backed by solid proofs

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