What is PF? (Provident Fund)
Provident Fund (PF), specifically the Employees’ Provident Fund (EPF), is a retirement savings scheme regulated by the Employees’ Provident Fund Organization (EPFO). It helps employees build a financial cushion for retirement or emergencies.
Key Features:
✅ Applicable to: Establishments with 20 or more employees
✅ Eligibility: All employees earning a basic salary up to ₹15,000/month (can also be enrolled voluntarily above this limit)
✅ Contribution:
⇒ Employee: 12% of basic salary + DA
⇒ Employer: 12% of basic salary + DA
⇒ Out of employer’s 12%, 8.33% goes to Pension Scheme, remaining to EPF
Benefits of PF:
⇒ Retirement savings with monthly interest
⇒ Tax-free withdrawals under certain conditions
⇒ Partial withdrawals allowed for marriage, education, medical, or home purchase
⇒ Life insurance cover under EDLI scheme
📌 Note:
PF registration is mandatory for eligible organizations, and monthly contributions must be filed via EPFO portal.