Employees' Provident Fund (EPF)

1. 7/29/2020 EPF (Employee Provident Fund). The Employee Provident Fund (EPF) is a… | by India Tax | Jul, 2020 | Medium Only you can see this message This story's distribution setting is on. Learn more EPF (Employee Provident Fund) India Tax Jul 13 · 3 min read The Employee Provident Fund (EPF) is a scheme that helps people save up a sufficient corpus for retirement. The plan was introduced with the Employees’ Provident Funds Act in 1952 and is today managed by the Employees’ Provident Fund Organisation (EPFO). In this scheme, an employee has to contribute 12% of their basic income towards the fund every month. The employer matches this amount with an equal contribution. When you retire, you receive the total amount (personal as well as the employer’s contribution) as a lump sum along with interest. The EPF is regarded as a low-risk investment as the Government of India manages it and assures a fixed rate of return. https://medium.com/@itaxinfo6/epf-employee-provident-fund-751c69ca1ca0 1/4

2. 7/29/2020 EPF (Employee Provident Fund). The Employee Provident Fund (EPF) is a… | by India Tax | Jul, 2020 | Medium Companies with a minimum of 20 employees must maintain EPF accounts for their employees. Some companies with fewer than 20 employees also adopt the EPF scheme. We shall discuss this in detail later on. Also, the provision of an EPF account is compulsory for employees with a salary of less than ?15000. That said, most companies provide the facility to all employees regardless of their salary. And if you move from one job to another, you can transfer your EPF corpus easily. This is possible through something known as the Universal Account Number. As mentioned above, both the employee and the employer need to contribute equally to the EPF account every month. But the actual amount you add to your EPF account every month is calculated on your basic salary in addition to your dearness allowance and your retaining allowance. For most employees, the contribution rate is 12%. But there are certain circumstances where a 10% rate is applicable. For example, if a company meets the following criteria: has less than 20 employees, suffers losses that are more than its entire net worth, https://medium.com/@itaxinfo6/epf-employee-provident-fund-751c69ca1ca0 2/4

3. 7/29/2020 EPF (Employee Provident Fund). The Employee Provident Fund (EPF) is a… | by India Tax | Jul, 2020 | Medium belongs to the jute, beedi, brick, coir or guar gum industry, Another distinct case is that of women employees. As per the 2018–19 Union Budget, new women employees could contribute only 8% (instead of 12%) towards their EPF account for the first three years of employment. This was done for two reasons: To encourage companies to hire more women For women to get a higher take-home pay. And though women employees can contribute 8%, the applicable rate of contribution for employers continues to be 12%. We have discussed all the different investment provisions available under EPF. But what if you want to contribute more than 12% towards your EPF? Well, you can do it through something known as a Voluntary Provident Fund (VPF). Employee Provident Fund Income Tax Return Goods And Service Tax About Help Legal Get the Medium app https://medium.com/@itaxinfo6/epf-employee-provident-fund-751c69ca1ca0 3/4

4. 7/29/2020 EPF (Employee Provident Fund). The Employee Provident Fund (EPF) is a… | by India Tax | Jul, 2020 | Medium https://medium.com/@itaxinfo6/epf-employee-provident-fund-751c69ca1ca0 4/4