The Ministry of Labour & Employment has issued clarification regarding EPF. Employees’ Provident Fund (EPF) Scheme, 1952 is one of the three schemes framed under the Employees’ Provident Funds and Miscellaneous Provisions (EPF & MP) Act, 1952. The EPF Scheme, 1952 aims at providing social security to employees employed in an EPF covered establishment.
The wage ceiling for coverage under the EPF Scheme, 1952 is revised from time to time. Presently, it is Rs.15000/- per month since 01.09.2014.
Under the EPF, Scheme, 1952, an employee of any covered establishment drawing monthly wages up to Rs. 15,000 is statutorily required to join the fund and to contribute 12% of wages, which includes basic wages, dearness allowance and retaining allowance, if any. The employer is also required to contribute 12% of the wages.
The Employees’ Provident Fund is managed by a Board of Trustees consisting of representatives from Central Government, employers, employees and State Governments. A member of the EPF Scheme, 1952 is entitled to the benefit of withdrawal and advance for various purposes (viz. for purchase/construction of dwelling house, illness, education, marriage, Covid-19, etc.) from the EPF as per the provisions contained in the said scheme. A member is also entitled for credit of interest on his/her PF accumulations each year.
