The Employee Provident Fund (EPF) is a retirement savings scheme managed by the Employees' Provident Fund Organisation (EPFO) in India. It is a mandatory scheme for employees in organizations with 20 or more employees.
Key Features:- Both employee and employer contribute 12% of basic salary + DA
- Employee's entire 12% goes to EPF account
- Employer's contribution: 3.67% to EPF and 8.33% to Employee Pension Scheme (EPS)
- Interest is compounded annually (current rate: 8.15% for FY 2023-24)
- Tax-free withdrawals after 5 years of continuous service