What is Provident Fund (EPF)?

The Employees' Provident Fund (EPF) is a statutory retirement savings scheme administered by the Employees' Provident Fund Organisation (EPFO) under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. Both the employer and employee contribute a percentage of wages each month, which accumulates with interest declared annually by EPFO and is payable mainly on retirement, resignation or specified withdrawals.

• Establishments employing 20 or more persons are generally required to register with EPFO (smaller establishments may opt in voluntarily).
• Employees drawing wages up to the EPFO wage ceiling are typically mandatorily covered; employees above the ceiling may be covered by mutual agreement.
• Every covered employee is issued a Universal Account Number (UAN) that stays the same across employers.

• Both employer and employee contribute a percentage of wages (basic + dearness allowance) each month, as prescribed by EPFO.
• A part of the employer's contribution is routed to the Employees' Pension Scheme (EPS), subject to EPFO limits, and the remainder to the EPF account.
• Employers must remit contributions and file the Electronic Challan-cum-Return (ECR) by the due date each month.

• Delaying PF remittance past the due date, which attracts interest and penal damages under the Act.
• Excluding allowances that EPFO treats as part of "basic wages" for contribution purposes.
• Not linking a new joiner's UAN and Aadhaar promptly, which blocks fund transfers and withdrawal claims.
• Ignoring exempt/unexempt trust distinctions for establishments running their own PF trust.