Provident Fund { PF }

PF stands for Provident Fund. It is a scheme for salaried employees to invest during work life and enjoy the benefits after retirement. It is a compulsory, government-managed retirement savings strategy for employees, who can contribute a part of their savings towards their pension fund, every month. The entire process is monitored by EPFO (Employees Provident Fund organization). Any organization that has more than 20 employees is entitled to PF and must register with the EPFO.

In 1952, the PF (Provident Fund) or EPF scheme was introduced under the Employee’s Provident Fund and Miscellaneous Act. All the rules and regulations are defined by the Employee Provident Fund Organisation. The EPFO’s activities are managed by the Ministry of Labour and Employment.

PF contribution is made by both the employees and the employer. The contributions get accumulated in the provident fund in the name of the employee. The contribution of the employer is 12% of the basic wage plus DA (Dearness Allowance).