The EPF (Employees’ Provident Fund) is an investment scheme launched by Govt. for salaried individuals and is maintained solely by the Employees’ Provident Fund Organisation of India (EPFO).
As per EPF scheme, any establishment having more than 20 employees has to register with the EPFO.
Every employee is allotted UAN (Universal Account No.) by EPFO at the time of joining EPF. Contribution to EPF is mandatory if your salary is INR 15,000 or less. But once you become member of EPF, you cannot opt out of it even if your salary increases from INR 15,000. In that case, you will have to change your job to opt out of it.
Contribution is made by employee and employer. Employee contribute 12% of his salary towards EPF whereas employer contribute 12% of his employee’s salary towards EPF & EPS. In addition to this, 1.61% is contributed towards charges and insurance.
Contribution is as per following table:
|Scheme Name||Employee Contribution||Employer Contribution|
|Employee Provident Fund (EPF)||12.00%||3.67%|
|Employees’ Pension Fund (EPS)||0.00%||8.33%|
|Employees Deposit Linked Insurance (EDLI)||0.00%||0.50%|
|EPF Admin Charges||0.00%||1.10%|
|EDLI Admin Charges||0.00%||0.01%|
In case of employee contribution, 12% goes to
EPF. But in case of employer contribution, 8.33% goes to EPS subject to maximum of INR 1,249.50/- and balance goes to EPF.
Must Read : EPF Facts 1 – Nomination and Insurance Facility