EMPLOYEES’

PROVIDENT FUND

PRESENTED BY: SURUCHI GUPTA

1241MBA18
 EPF ACT 1952
The Employees provident Fund Act was
passed in 1952.
3 schemes come under this:
1. Employees Provident Fund Scheme,1952.
2. Employees Deposit Linked Insurance
Scheme,1976.
3. Employees Pension Scheme,1995.
The act came into immediate effect from
4th March 1952.
 INTRODUCTION OF EPF
SCHEME,1952

•EPF is one of the platforms of saving in

India for nearly all people working in
Government, Public or Private sector
organization.
•It is implemented by the EMPLOYEES
PROVIDENT FUND ORGANISATION
(EPFO) of India.
 MEANING OF EPF
•The Employees Provident Fund is compulsory
contributory fund for the future of the employee
after his retirement or his dependents in the case of
his early death.

•Six industries namely:

1.Cement 2. Cigarettes 3.Electrical,mechanical or
general engineering products 4.Iron and Steel 5.
Paper 6. Textiles came under implementation of the
Act w.e.f 1 November,1952.
 AIM OF EPF ACT,1952
•Its aim is to provide for a better future of
industrial workers on retirement and for the
dependent in case of his death.
•In order to give benefit of provident funds to
more workers the provision of the act have
been amended from time to time.
•The act was amended in 1971 to provide for
Family Pension and Life Insurance benefits.
•It was again amended in 1976 for introducing
deposit- Linked Insurance scheme.
 EPF ELIGIBILITY
•It is mandatory for salaried employees with an income of
Rs. 15000 per month to register for an EPF Account.
•As per law, it is mandatory for an organization to register
for the EPF Scheme, if they have more than 20 employees
working for them.
•Organizations with less than 20 employees can also join
the EPF Scheme on a voluntary basis.
•Employees who earn more than Rs.15000 can also
register for an EPF Account.
•The rate of interest on EPF is increased from 8.55% to
8.65% for the financial year 2018-19.
•This scheme does not cater to the needs of people
residing in Jammu and Kashmir.
 EPF CONTRIBUTIONS
Both the employer and the employee have to make an EPF
Contribution.
Each makes a contribution of 12% of the employee’s dearness
allowance and basic salary towards EPF.
•Employee’s contribution towards EPF:
12% of the employee’s salary is deducted by the employer on
monthly basis for contribution towards EPF. The entire contribution
goes towards the EPF Account.
•Employer’s contribution towards EPF:
The employer also contributes 12% of the employee’s salary
towards EPF. However, his contribution is divided into two categories
i.e., Employees’ Provident Fund : 3.67% and Employees’ Pension
Scheme : 8.33%.
 WITHDRAWAL FROM EPF
•It is possible to partially withdraw from the EPF Account :
for the purchase of a house, wedding expenses or
medical expenditure. The withdrawal limit varies based
on the reasons for the withdrawal.

•The entire PF amount can be withdrawn under several

circumstances. Some of these include: attainment of
retirement age, resignation due to permanent total
mental/bodily incapacity, permanent relocation to other
countries, death of the member, etc.
 LONG TERM
FINANCIAL SECURITY RETIREMENT
PERIOD

TAX FREE
SAVINGS DEATH

BENEFITS OF EPF SCHEME

UNSEEN
UNEMPLOYMENT/
CIRCUMSTANCES
INCOME LOSS

ACCESSIBLE ALL OVER