Employee Provident Fund or EPF is a scheme in which retirement benefits are accumulated. Under the scheme, an employee has to pay a certain contribution towards the scheme and an equal contribution is paid by the employer.
EPF is the main scheme under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. The scheme is managed under the aegis of Employees' Provident Fund Organization (EPFO). It covers every establishment in which 20 or more people are employed and certain organizations are covered, subject to certain conditions and exemptions even if they employ less than 20 persons each.
CONTRIBUTION BY EMPLOYER & EMPLOYEE
£ Employer’s contribution – 10/12 % of Wages+ Dearness Allowance (DA),
£ Employee’s contribution – 10/12% of Wages+ Dearness Allowance (DA).
ELIGIBILITY FOR EPF:
£ Employees with salary less than ₹15,000 per month have to mandatorily register with EPF.
£ For employees whose pay is above ₹15,000 can become a EPF member with permission of Assistant Commissioner on prior approval of employer of establishment.