EPF Act in India

The Employees' Provident Funds and Miscellaneous Provisions Act, 1952, commonly known as the EPF Act, is a key social security legislation in India designed to provide financial stability to employees after retirement or during unforeseen circumstances. The Act mandates the establishment of a provident fund, pension scheme, and insurance scheme for employees in establishments employing 20 or more workers. Both employers and employees contribute equally to the Provident Fund, typically 12% of the employee's salary. The fund earns interest and serves as a savings pool accessible to employees under specific conditions, such as retirement, medical emergencies, or housing needs. Administered by the Employees' Provident Fund Organisation (EPFO), the Act ensures social security and promotes savings among the working class, fostering long-term financial independence and security.