EPF: Definition, Meaning & Guide for Indian Businesses

EPF (Employees' Provident Fund) is the retirement savings scheme run by EPFO. Employer contributes 12% and employee 12% of basic salary.

What is EPF?

Employees' Provident Fund (EPF) is India's largest retirement scheme. Any establishment with 20+ employees must register with EPFO and contribute 12% of each employee's basic + DA. The employee matches 12%. Of the employer's 12%, 8.33% goes to Employees' Pension Scheme (EPS) and 3.67% to EPF. The employee can withdraw the full balance after 60 days of unemployment, partially for marriage/home/medical, or roll over to a new employer. Interest is declared annually by EPFO (8.25% for FY 2023-24).