The letters EPF stands for Employees’ Provident Fund. The word “Provident” means for future. Therefore, it means that the Fund which is saved for future needs. The EPF is very much required for every employee as the life is uncertain. Hence every person immediately after joining their employment must contribute some (10% or 12%) percentage of their salary along with contribution made by the employer. This fund is maintained by the organization Employees’ Provident Fund Organization, which is established under EPF & MP Act, 1952 by the Government of India. The said contribution for both employee and employer is mandatory as per the said Act.
The Government of India has introduced the biggest Social Security to all salaried employees and executing the framed Schemes through Employees’ Provident Fund Organization (EPFO) by enacting EPF & MP Act, 1952. In the EPF & MP Act, 1952 the following important Schemes were framed and have been updating from time to time.
- Employees’ Provident Fund Scheme.
- Employees’ Pension Scheme, 1995.
- Employees, Deposit Linked Insurance Scheme.