Employees’ Provident Fund or EPF is a popular savings scheme that has been introduced by the EPFO under the supervision of the Government of India. The Employees’ Provident Fund is a fund where both the employer as well as the employee contributes a part of the salary. These contributions are made regularly on a monthly basis. The interest rate fixed depends upon the employee’s basic pay along with the dearness allowance in his salary.
Additionally, any organisation that employs at least 20 individuals is deemed liable to extend benefits of EPF to its employees.When an employee becomes an active member of the scheme, they are considered eligible to avail several benefits in the form of Employees Provident Fund benefits, insurance benefits and pension benefits.
Enrolled employees of EPF will be issued UAN Number which can be used for an employees to know their contributions as on date, employer contribution,Individuals may opt for either partial or complete withdrawal of EPF. But such withdrawals can be made only under specific circumstances.
Retirement Period: The accumulated fund under this scheme may be used at the time of retirement of the employee. This provides relief to the retired employee in the form of monetary security. Unseen circumstances: The accumulated fund can be used by the employee in case of any kind of emergency. The employee may choose to withdraw his/her fund prematurely. The scheme provides for such pre-term withdrawals in certain special cases. Unemployment/Income Loss: Resignation/Quitting of Job: Death: .Disability of the employee: An employer who contravenes, or makes default in complying with, the provisions of section 6C, or clause (a) of sub-section (3A) of section 17 in so far as it relates to the payment of inspection charges, shall be punishable with imprisonment for a term which may extend to 7 [one year] but which shall not be less than 8 [six months] and shall also be liable to fine which may extend to 9 [five thousand rupees]: