Employee Provident Fund

Employees Provident Fund is a scheme for Indian employees that is controlled by the Provident Funds and Miscellaneous Provisions Act, 1952. The Employee Provident Fund is regulated under the umbrella of Employees Provident Fund Organization (EPFO).

All establishments that have employed 20 or more employees can apply for PF registration in India. In some cases, establishments employing less than 20 are still eligible. The employee receives an amount that includes both their and the employer’s contributions with interest on resignation or retirement.

Who is eligible to get EPF registration?

For Employer

PF Registration is mandatory for all establishments:

• That has engaged 20 or more people.
• If fewer than 20 employees are engaged, the central government may notify PF applicability.

For Employee

Employees earning less than ₹15,000/month must mandatorily enroll in EPF. Those earning more may also opt-in voluntarily with employer consent and PF commissioner approval.

The amount for the contribution of PF

The employer must register for PF within 1 month of becoming eligible. Non-compliance can attract penalties. Even if the number of employees falls below the limit, a registered entity remains under the Act.

The standard contribution is 12% of (Basic Salary + Dearness Allowance + Retaining Allowance) from both employer and employee. If fewer than 20 employees are engaged, the contribution may be reduced to 10%. Usually, the calculation is based on basic salary.