EPF Account - Employees' Provident Fund Savings
ईपीएफ खाता
EPF Account is a government-backed retirement savings scheme for salaried employees managed by the Employees' Provident Fund Organization (EPFO). Employer and employee each contribute 12% of basic salary monthly; funds accumulate with interest for retirement.
Key facts
- Mandatory for employees earning below Rs. 15,000 per month; optional for higher-earning employees
- Employer and employee each contribute 12% of basic salary (24% total); employer also pays 1.25% for workers' compensation
- Annual interest: Currently 8.15% (2024-25), credited to accounts on March 31 annually
- Minimum one month of contribution to become a member; membership number (UAN) assigned by EPFO
- Withdrawal rules: 50% available after 7 years of membership; full amount available after retirement (age 58) or job termination
Details
EPF (Employees' Provident Fund) is a statutory retirement savings and social security scheme managed by the Employees' Provident Fund Organization (EPFO), a government body under the Ministry of Labour and Employment. EPF membership is mandatory for private sector employees earning up to Rs. 15,000 per month; higher-earning employees may opt in voluntarily. Both employer and employee contribute 12% of basic salary (plus dearness allowance in some cases) each month to the EPF account, totaling 24% of basic salary. The employer also contributes an additional 1.25% to the Employees' Deposit Linked Insurance Scheme (EDLI) for workers' compensation. Accumulated funds accrue interest at a rate determined annually (currently 8.15% for 2024-25), credited to accounts on March 31. Each employee is assigned a unique Unique Account Number (UAN) and an EPF Account Number (EPS-account number). EPF withdrawal rules: after 7 years of membership, employees can withdraw 50% of the balance or the balance of the last 4 months, whichever is higher, for specific purposes like higher education or medical emergencies. Full withdrawal is permitted after retirement (age 58), job termination, or becoming a senior citizen (age 60+). The Employees' Pension Scheme (EPS), linked to EPF, provides a monthly pension after retirement based on service years and average salary. Portal management is through the EPFO website or mobile app (UMANG). A significant pitfall: failing to update employment records or not settling EPF dues upon job change can result in account suspense or loss of accrued benefits.