A provident fund is created with the purpose of providing financial security and stability to elderly people. Generally, one contributes in these funds when one starts as an employee, the contributions are made on a regular basis (monthly in most cases). Its purpose is to help employees save a fraction of their salary every month, to be used in an event that the employee is temporarily or no longer fit to work or at retirement. The investments made by a number of people / employees are pooled together and invested by a trust.
Employee Provident Fund (EPF) is implemented by the Employees Provident Fund Organization (EPFO) of India. An establishment with 20 or more workers working in any one of the 180+ industries should register with EPFO. Typically 12% of the Basic, DA, and cash value of food allowances have to be contributed to the EPF account. EPFO is a statutory body of the Indian Government under Labour and Employment Ministry. It is one of the largest social security organizations in the world in terms of members and volume of financial transactions undertaken.
Presently, the following three schemes are in operation under the Acts
Table below gives the rates of contribution of EPF, EPS, EDLI, Admin charges in India.
|Scheme Name||Employee contribution||Employer contribution|
|Employee provident fund||12%||3.67%|
|Employees' Pension scheme||0||8.33%|
|Employees Deposit linked insurance||0||0.5%|
|EPF Administrative charges||0||1.1%|
|EDLIS Administrative charges||0||0.01%|
(Any one of these documents has to be submitted)
The above list is not exhaustive and is only illustrative. Any one or more of the above documents may be submitted along with your application for allotment of a Code Number.