EPF (Employees’ Provident Fund)

The Employees’ Provident Fund is a retirement scheme administered by the EPFO. An establishment employing twenty or more people is generally required to register, and covered employees contribute a percentage of their basic wages plus dearness allowance, matched by the employer.

The employee’s contribution goes entirely to the provident fund. The employer’s contribution is split: part goes to the provident fund and part to the Employees’ Pension Scheme, which is why an employee’s PF passbook does not show the employer contributing the same amount into the same pot.

A statutory wage ceiling applies to the mandatory contribution. Employers may contribute on wages above the ceiling voluntarily, and many do, but the obligation is limited to it. An employee already contributing may continue above the ceiling; whether the employer matches above it is a policy question.

Contributions are filed monthly through an Electronic Challan cum Return, and each employee is identified by a Universal Account Number that stays with them across employers — which is what makes transfer on a job change possible rather than requiring a withdrawal.