Statutory Compliance made easy

Employees Provident Funds & Miscellaneous Provisions Act, 1952 - Pionhr

EPF And MP Act


The Employee Provident Fund and Miscellaneous Provisions Act, 1952 is an act to provide for the institution of Provident Fund, Pension Fund and Deposit-Linked Insurance Fund for employees in factories and other establishments. EPF is an initiative of the government to provide proper care of the employees and to ensure their social security.


Employees’ Provident Fund has been set up under the EPF and MP Act, 1952 which is applicable to the whole of India except in the state of Jammu and Kashmir (Jammu and Kashmir Employees’ Provident Funds and Miscellaneous Provisions Act, 1961 is followed). It is applicable to:

To every establishment which is a factory engaged in any industry specified in Schedule I and in which 20 or more persons are employed.

To any other establishment employing 20 or more persons or class of such establishments which the Central Government may, by notification in the Official Gazette, specify in this behalf.

Wage Limit

Employees drawing basic salary up to Rs.15,000 have to compulsory contribute to the provident fund. It is optional for employees drawing above Rs.15,000 to become member of the provident fund.


It consists of three schemes:

Employees Fund Scheme

Employees’ Fund Scheme For the purpose of providing a post retirement benefit for the employees or a class of employees or their legal heirs in case of death, employed under an establishment to which this Act applies.

Employees Pension Scheme

For the purpose of providing for Superannuation pension, retiring pension or permanent total disablement pension to the employees and the Widow or widower’s pension, children pension or orphan pension payable to the beneficiaries of such employees.

Employees’ Deposit-linked Insurance Scheme

For the purpose of providing life insurance benefits to the employees of any establishment or class of establishment.



1. Employer Contribution 3.67% 8.33% 0.5% or Rs 500 whichever is higher
2. Employee Contribution 12% - -

Employer Contribution: 0.5% of basic (to PF Admin)

Rate of Interest

Current Rate of Interest is 8.5% per annum.

KYC, Transfer Claims

For availing services such as PF withdrawal or PF transfer online, it is mandatory to have verified KYC such as Aadhaar, PAN. The employees with verified Aadhaar, PAN and Bank details seeded against their UAN can submit their PF Withdrawal/Settlement/Transfer claims online.


An employee can apply for complete withdrawal in the following cases:

On attaining 58 years of age
At the time of retirement
If an employee remains unemployed for a period of 2 months or more

An employee can apply for partial withdrawal in the following cases:

Educational opportunity
Medical treatment
Repayment of home loan

For Example

This amount is calculated each month. To simply the math, assume that your basic salary is Rs.20,000 per month including dearness allowance.

Your EPF contribution:

Your contribution towards EPF is 12% of Rs.20,000 which amounts to Rs. 2,400 each month.

Your employer’s EPF contribution

Your employer’s contribution towards Employee Provident Fund (EPF) is 3.67% of Rs.20,000 which comes to Rs. 734 per month.

Your employer’s contribution towards Employee Pension Scheme (EPS) is 8.33% of Rs.20,000, which comes to Rs. 1,666 per month.

Your employer’s contribution towards Employee Deposit Linked Insurance Scheme (EPS) is 0.5% of Rs.20,000, which comes to Rs. 100 per month.

Total Employer Contribution for a month is Rs. 2500.

Total EPF contribution (by you and your employer) for a month amounts to Rs.3,134 (Rs.2,400 + Rs.734).

In order to check whether your employer is making contributions towards your EPF account or to see your account balance, you can use your UAN and log into your EPF account on the EPFO member portal.