EPF (Employees' Provident Fund) — Meaning
Mandatory retirement savings scheme for employees in India — employee and employer each contribute 12% of basic salary.
What is EPF (Employees' Provident Fund)?
Employees' Provident Fund (EPF) is the mandatory retirement savings scheme run by EPFO, now governed by the Code on Social Security, 2020. Establishments with 20 or more employees must register. Employee and employer each contribute 12% of wages (basic + DA); part of the employer's share goes to the Employees' Pension Scheme. The statutory wage ceiling was raised to ₹25,000 a month from 17 September 2026. Interest for FY 2025-26 is 8.25%. Employee contributions qualify for Section 80C in the old regime; interest on employee contributions above ₹2.5 lakh a year (₹5 lakh where the employer doesn't contribute) is taxable. Withdrawals after five years of continuous service are tax-free.
