About Employee’s Provident Fund

EPF registration is a mandatory requirement for certain businesses in India under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. It aims to provide social security benefits to employees by ensuring they save a portion of their salary, which is matched by their employer, for future financial security, including retirement.
All companies and organisations, whose strength exceeds a total of 20 employees, have to mandatorily register for EPF. The amount contributed to EPF by the employer and the employee, in this case, is 12% of basic wages along with dearness plus retaining allowance. However, those companies with a strength of less than 20 can also voluntarily register for their employees, and in that case, the amount to be contributed to EPF is10%.
Further, this combined employee-organisation effort allows employees to put away a substantial nest egg for retirement purposes or any other unforeseen times of financial duress.