What is Employee Provident Fund?



  • The Employees' Provident Fund came into existence with the promulgation of the Employees' Provident Funds Ordinance on the 15th November, 1951. It was replaced by the Employees' Provident Funds Act, 1952. The Employees' Provident Funds Bill was introduced in the Parliament as Bill Number 15 of the year 1952 as a Bill to provide for the institution of provident funds for employees in factories and other establishments. The Act is now referred as the Employees' Provident Funds & Miscellaneous Provisions Act, 1952 which extends to the whole of Indian except Jammu and Kashmir.

  • The Act and Schemes framed there under are administered by a tri-partite Board known as the Central Board of Trustees, Employees' Provident Fund, consisting of representatives of Government (Both Central and State), Employers, and Employees.

  • The Board administers a contributory provident fund, pension scheme and an insurance scheme for the workforce engaged in the organized sector in India. It is one of the world’s largest organizations in terms of clientele and the volume of financial transactions undertaken by it. The Board is assisted by the Employees’ PF Organization (EPFO), consisting of offices at 122 locations across the country. The EPFO is under the administrative control of Ministry of Labour and Employment, Government of India (click here). The Organization also has a well equipped training set up where officers and employees of the Organization as well as Representatives of the Employers and Employees attend sessions for trainings and seminars.
  • Accumulation plus interest upon retirement, resignation , death. Partial withdrawals allowed for specific expenses such as house construction, higher education, marriage, illness etc.
  • Partial withdrawals allowed for specific expenses such as house construction, higher education, marriage, illness etc.

  • Monthly benefits for superannuation/ retirement, disability, survivor, widow (er), children.
  • Amount of pension based on average salary during the preceding 12 months from the date of exit and total years of employment.
  • Minimum pension on disablement.
  • Past service benefit to participants of erstwhile Family Pension Scheme, 1971.

  • The benefit provided in case of death of an employee who was member of the scheme at the time of the death.
  • According to revised scheme payment of benefit amount to be 20 times of the wages or based on the deposit in the Provident Fund, which ever is less. With the increase in the wages ceiling from 6500/- to 15000/- from 01.09.2014, the maximum benefit amount has become 3 lakh and an additional 20% of the benefit amount calculated is also paid.


  • For more Information click here