Employee Provident Fund – Meaning, Basic Details, Applicability


By VRP

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Worker Provident Fund (EPF). In India there are numerous social security plans in existence amongst which some are voluntary in nature while the rest are compulsive in nature. In this article we provide complete information for Worker Provident Fund.

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Staff Member Provident Fund Scheme:

” Provident Fund” is A mandatory, retirement savings scheme handled by government in India and some other countries. The cash in the fund is would be a support to retired people, or in some cases to the disabled who can not earn their bread and meal.

Meaning– EPF:

Usually one has to contribute in Provident fund account when he/ she begin his profession as a staff member in a company either public or personal any sector however his company need to be covered by the statutory provisions of EPF Act. It’s primary slogan is to help workers to conserve a part of their income every month, which in turn can be used for the rescue of worker and his dependents from an unforseen situation when the worker is temporarily or no longer fit to work or at retirement.

Secret focus is on:

  • 1. medical assistance,
  • 2. retirement,
  • 3. education of children,
  • 4. insurance assistance and housing.

Administration:

Employee Provident Fund is administered by the “Employees Provident Fund Organisation (EPFO)” of India which is constituted appropriately as stated in the statue.

Applicability:

An establishment with 20 or more workers in any one of the 180 markets as specified by EPF Act, must register with EPFO As per the arrangement of EPF Act 1952,12% of the Standard, DA, and money value of food allowances needs to be contributed to the EPF account. Employer likewise must contribute the same 12% in addition to the administrative charges.

EPF can be more classified into:

1. Employee’s Provident Fund Plan,

2. Staff Members’ Deposit Linked Insurance Scheme,

3. Staff member’s Pension Plan.

I will cover about each plan individually in my subsequent posts…

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