Provident Fund

The EPF is governed by the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, administered by the Employees' Provident Fund Organisation (EPFO). Both employer and employee contribute 12% of the employee's basic salary plus dearness allowance (DA). Of the employer's 12%, 8.33% goes to the Employees' Pension Scheme (EPS) and 3.67% goes to the EPF account. The statutory wage ceiling for mandatory coverage is INR 15,000 per month — employees earning above this can still be covered voluntarily. Contributions are deposited monthly into the employee's UAN (Universal Account Number) linked EPF account. The EPF balance earns interest at a rate declared annually by the EPFO (8.25% for FY 2023-24). Employees can withdraw EPF partially for specific purposes (home purchase, medical emergency, marriage) or fully upon retirement or after 2 months of unemployment. Employers must file monthly ECR (Electronic Challan cum Return) filings on the EPFO portal.

What is the EPF contribution rate in India?

Both employer and employee each contribute 12% of the employee's basic salary plus dearness allowance. Of the employer's 12%, 8.33% goes to the Employees' Pension Scheme (EPS) and 3.67% goes to the EPF account.

What is the EPF wage ceiling?

The statutory wage ceiling for mandatory EPF coverage is INR 15,000 per month (basic salary + DA). Employees earning above this threshold are not mandatorily covered but may voluntarily opt into EPF. Employers must enroll all eligible employees earning up to this limit.