EPF- basics

1. Employee Provident Fund is a contribution-based retirement scheme run by the

Government of India.
2. It allows employees to build a savings fund
3. There are 2 portions to an EPF contribution – Employer’s Contribution & Employee’s
Contribution
4. On retirement, the employee gets a lump sum amount that includes the employee and the
employer's contribution along with interest.
5. All establishments which have more than 20 employees are mandatorily required to
subscribe to the EPF scheme
6. From the employee’s end, anyone earning a basic salary of less than Rs 15000 is mandatorily
required to contribute to EPF
7. For employees earning a higher basic salary, the contribution is optional.
8. The mandatory amount fixed for subscription to EPF is 12% of the Basic salary, including
Dearness Allowance for both the employee and the employer. ie, both the employee and
employer contribute 12% of the employee’s basic salary each month towards EPF.
9. The entire administration of EPF rests with the Employees’ Public Fund Organisation, a
statutory body created by the Govt of India.
10. There are 3 Schemes in Operation:-
a. Employees’ Provident Fund Scheme (EPF) (1952)
b. Employees’ Deposit Linked Insurance Scheme (EDLI) (1976)
c. Employees’ Pension Scheme (EPS) (1995)
11. The Employee Contribution of 12% fully goes to EPF
12. From the employer’s contribution of 12%, the following are the allocations made:-
a. 3.67% into EPF
b. 8.33% into EPS
c. 0.5% into EDLIS
d. 0.85% for EPF Administrative Charges
e. 0.01% for EDLIS Administrative Charges

EPF – from Employer’s Perspective

1. Filing of monthly returns integrated with online payment of the contributions and charges.
2.