Employees Provident Fund (EPF)

What is Employees Provident Fund?

The Employee Provident Fund is a scheme, also known as the PF, provided to all salaried employees. It is a retirement saving scheme. It is backed by the government in which the fixed interest is paid to the employees. The Employees Provident Fund Organization (EPFO), a statutory agency established by the Indian government under the Ministry of Labor and Employment, is responsible for managing the employee provident fund. It was established to manage the required employer and employee contributions to the PF program.

An employee must wait until they reach retirement age before they can withdraw their entire EPF amount. The maximum withdrawal cannot, in the event of the termination of the job, exceed the total contributions made by the employee, plus any interest that has accrued. Only once they reach retirement age may an employee take a withdrawal from the employer’s part.

When leaving a job, an employee is only permitted to take his contribution and any interest that has earned. Only when the employee reaches retirement age is the portion of the employer’s contribution available. Thus, the employee remains a participant in the EPF program until he reaches retirement age.

Also, See: Provident Fund