Employee Provident Fund

Employees Provident Fund (EPF) is a statutory retirement benefits scheme under the Employees Provident Funds and Miscellaneous Provisions Act, 1952. The Employees Provident Fund Organization (EPFO) administers the EPF scheme. Organizations across the formal sector with an employee strength of 20 or more get mandatorily covered by the Employee Provident Fund scheme provisions.

Read more
Best Pension Options
  • Get Tax Free Pension For Life

  • Flexibility to withdraw fund value any time

  • Guaranteed Tax Savings

    Under Sec 80 C & 10(10D)

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Invest ₹6,000/month & Get Tax Free Monthly Pension of ₹60,000

Get the best returns & make the most of your Golden years

View Plans
Please wait. We Are Processing..
Plans available only for people of Indian origin By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company Tax benefit is subject to changes in tax laws
Get Updates on WhatsApp

EPF is a widespread scheme. Let us explore its various features and benefits to understand what makes it so popular.

What is EPF?

EPF is a post-retirement benefit scheme for ensuring a secured future for salaried employees. 

Under EPF Scheme 1952, both the employer and employee have to provide an equal monthly contribution at the rate of 12% of the basic salary plus dearness allowance (10% in certain cases).

Out of this, 8.33% of the employer's EPF contribution is towards the Employee Pension Scheme.

EPF Contribution 

The employer contributes a fixed percentage of the basic salary (including DA) towards the EPF on or before every month's due date. For most entities, the EPF contribution rate is 12%. 

10% EPF rate is applicable for:

  • A company with employees less than 20 employees

  • An industrial company declared as ‘sick’ by the Board for Industrial and Financial Reconstruction

  • An enterprise that has accumulated losses equal to or exceeding its entire net worth at the end of any financial year

  • Enterprises in the jute, beedi, brick, coir, and guar gum sector

Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.

*The investment risk in an investment portfolio is to be borne by the policyholder

EPF Interest

The current EPF interest rate for the fiscal year 2020–21 is 8.5% p.a. The interest on EPF gets calculated every month along with interest earned credited to the EPF account every year. The interest corpus is made available to the employee post-retirement or when they leave the employment on fulfilment of certain conditions. 

EPF Eligibility Criteria

To receive EPF benefits, you must fulfil the following criteria:

  • A formal sector organization with 20 or more employees must mandatorily register with the EPFO.

  • Organizations having less than 20 employees can register with the EPFO voluntarily.

  • All salaried employees are eligible for EPF.

  • Employees earning less than Rs. 15,000 have to register to the EPF scheme mandatorily.

  • Employees making more than Rs. 15,000 can voluntarily opt for the EPF scheme.

  • The EPF scheme is applicable across all states of India except Jammu and Kashmir.

 EPF Claim

The employee can avail of the accumulated EPF corpus at the time of retirement or when leaving the service, provided the requisite criteria get fulfilled. In the case of deceased employees, their dependents can avail themselves of EPF benefits.

Key EPF Forms

Different EPF forms must be filled while undertaking various activities, including registration, withdrawal, transfer of EPF, and availing of loans. 

These are some key EPF forms: 

EPF Form Purpose
Form 31 EPF Withdrawal
Form 14 Purchase of LIC policy from EPF account
Form 13 EPF Account Transfer
Form 2 EPF Declaration and nomination form
Form 19 EPF Final Settlement to the employee
Form 20 EPF Final settlement to the nominee in case of death of the employee
Form 5 New employee registering for EPF scheme
Form 11 Auto transfer of EPF

EPF Withdrawal

As per the new EPF Withdrawal Rules 2021, key EPF withdrawal pointers are:

  • EPF amount can be fully withdrawn only on retirement. Early retirement is when the person has crossed 55 years.

  • Partial withdrawal of EPF is permitted only when there is a medical emergency, house construction/purchase, or for higher education.

  • 90% of EPF corpus can be withdrawn one year before retirement.

  • Employees can withdraw the EPF corpus if they remain unemployed before retirement due to lockdown or retrenchment.

  • Only 75% of the EPF amount can be withdrawn after one month of unemployment. The remaining amount gets transferred to the new EPF account when the individual finds employment again.

Note: Employer approval is not required for withdrawing EPF funds. Employees can get online approval by linking their UAN and Aadhaar to their EPF account.

Key Benefits of EPF

Some key benefits of the Employees Provident Fund are:

  1. Allows for loans against EPF

    An EPF account holder can get loans against their EPF account balance. The said loan has to be repaid within 3 years from the date of disbursal. Interest on the loan is charged at a minimal rate of 1% p.a. for any financial emergency.

  2. Free insurance

    The EPFO provides the Employees Deposit Linked Insurance (EFLI) scheme to EPF holders upon joining. There is no insurance premium to be paid by the EPF account holder for the death cover. The maximum free insurance eligible for employees is currently capped at Rs. 7 lakhs.

  3. Home loan

    As per the EPFO’s rules, one can withdraw up to 90% of the EPF balance for purchasing or constructing a new home.

  4. Partial EPF withdrawal during emergency

    EPFO rules allow for partial withdrawal of funds during a financial emergency.

  5. Pension benefits

    An EPF holder is eligible for pension post-retirement. However, they should have contributed monthly PF for a minimum of 15 years towards their EPF account.

  6. Exemption from TDS

    An employee’s EPF contribution is not taxable. The employer’s contribution becomes taxable if it exceeds RS. 7.5 lakhs in a financial year. 

    Note: The tax benefit is subject to changes in tax laws.

In Conclusion

In summation, the Indian government launched the EPF as a post-retirement scheme to promote savings among salaried employees and help them accumulate a substantial retirement corpus. 

EPF allows for loans to be taken against the balance, which is tax-exemptible. It provides pension benefits and financial cover for insurance and emergencies.


  • How to register for the EPF scheme?

    One can register for the EPF scheme by visiting the official website of EPFO.
  • What is the due date for EPF payment?

    EPF payments are due on the 15th of each month. 
  • On what basis is the EPF contribution paid?

    The EPF contribution is paid on the maximum wage of Rs. 15000 by both employee and employer. 
  • Can an employee make higher EPF contributions?

    Yes, employees can also contribute to EPF at higher rates. However, their employer is not obligated to do the same.
  • Is EPF interest provided on non-operative accounts of retired employees?

    EPF interest is not provided on any amount deposited in non-operative accounts of retired employees.
Best Endowment Plans
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Retirement Plans
Monthly Pension Plans
Higher Returns Than Fixed Deposit
Retirement Calculator
Retirement Calculator
How much do you need to save for retirement?
₹ 20,000
₹ 25,000
₹ 30,000
Monthly Expenses in 2022
Edit Done
Your expense go up every year by
Today 2022 Your expenses today in 2022, at the age of 34 Yrs
Your expenses in 2043, at the age of 55 Yrs
For a monthly pension of ₹77,300
you need to invest
Calculated as per past performance of 15%
View Plan Recalculate?

Pension plans articles

Recent Articles
Popular Articles
How to Get a 50K Pension Per Month?

15 Jun 2022

Retirement planning should form an essential part of your...
Read more
NPS Premature Withdrawal

15 Jun 2022

The National Pension Scheme is the Central Government’s social...
Read more
Get 30K Pension Per Month

15 Jun 2022

Planning retirement is extremely important and crucial these...
Read more
Atal Pension Yojana Premium Chart

08 Jun 2022

Atal Pension Yojana (APY) is a government of India initiative to...
Read more
Monthly Pension Scheme for Senior Citizens

02 Jun 2022

Retirement planning is paramount to creating a constant source...
Read more
Saral Pension Yojana
In India, there are various individual immediate annuity products offered by life insurance companies. These...
Read more
National Pension Scheme (NPS) – Govt Approved Pension Scheme
National Pension Scheme (NPS) is an investment cum pension plan launched by the Indian Government. This scheme is...
Read more
NPS Calculator - National Pension Scheme Calculator Online
National Pension Scheme Calculator is an online tool, which allows the individual to calculate the estimated...
Read more
Post Office NPS Calculator 2022
National Pension System is a scheme launched by the Government of India that offers stability to all Indian...
Read more
NPS Tier 2 Account Advantages and Disadvantages
NPS or the National Pension Scheme is an initiative taken by the Central Government that protects the holders'...
Read more

Download the Policybazaar app
to manage all your insurance needs.