what is epf

The Employees Provident Fund (EPF) is a retirement benefits scheme provided by the Employees Provident Fund Organisation (EPFO) in India and Sri Lanka. It is a social security scheme that aims to ensure the financial security of employees. The EPFO administers the mandatory provident fund, a basic pension scheme, and a disability/death insurance scheme. Both the employee and the employer contribute to the EPF India scheme on a monthly basis in equal proportions of 12% of the basic salary and dearness allowance. The EPF offers relatively higher interest rates on investments and is a tax-saving instrument. It is a low-risk instrument due to government backing and offers a pension, making it a convenient saving tool. The EPF is a retirement nest creation option and competes with other instruments such as PPF, NPS, fixed deposits, and mutual funds. The EPF is also administered by the Employees Provident Fund Organization (EPFO), a statutory body developed by the government of India under the Ministry of Labor and Employment. The EPF is exempt-exempt-exempt in terms of taxation and offers various withdrawal rules and benefits for employees.