P.F(PROVIDENT FUND)

The EPF (Employees' Provident Fund) Scheme is a pivotal social security initiative established by the government to foster savings among employees and ensure they have financial support after retirement. This program is integral to helping employees build a substantial retirement corpus through regular, mandatory contributions from the employee and their employer.

• The inception of the Employees' Provident Fund dates back to the enactment of the Employees' Provident Funds Ordinance on November 15, 1951, which was subsequently replaced by the Employees' Provident Funds Act of 1952. This legislative journey began with the introduction of the Employees' Provident Funds Bill in Parliament as Bill Number 15 of 1952, aimed at establishing provident funds for employees across factories and other establishments. Over time, this legislation evolved into the Employees' Provident Funds & Miscellaneous Provisions Act of 1952, applicable nationwide in India.
• The administration of this Act and its associated schemes falls under the purview of a tripartite body known as the Central Board of Trustees (CBT), Employees' Provident Fund. The CBT comprises representatives from various sectors, including the government (both central and state), employers, and employees.
• The CBT administers three schemes – Employees’ Provident Fund (EPF) Scheme 1952, Employees’ Pension Scheme (EPS) 1995 and Employees’ Deposit Linked Insurance (EDLI) Scheme 1976 for the workforce engaged in the organized sector in India. The Board is assisted by the Employees’ PF Organization (EPFO), consisting 147 offices across the country (EPFO's Organisation Structure).The EPFO is under the administrative control of the Ministry of Labour & Employment, Government of India.

From the beginning of their employment, all employees are eligible for the Provident Fund, with the employer responsible for managing the deductions and payments. Typically, the PF contribution shared equally between employer and employee.

• Employee Contribution: Each employee contributes 12% of their basic pay towards the EPF.
• Employer Contribution: Similarly, employers contribute an equivalent of 12% of the employee's basic pay. Of this, 3.67% is directed into the employee's EPF account, while the remaining 8.33% is channelled into the employee's Pension Fund (EPS).