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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retirement or leaving the organization, the accumulated amount, along with accrued interest, can be partially or fully withdrawn.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.