The Employees’ Provident Fund (EPF) is a savings scheme introduced under Employees’ Provident Fund and Miscellaneous Act, 1952. It is managed by the central board of trustees consisting of the government, employer and employees; it is assisted by The Employees’ Provident Fund Organization. EPFO works under the direct jurisdiction of the government and is managed through the Ministry of Labour and Employment.
EPF is commonly known as PF in India and is a scheme through which a portion of employee’s income is set aside for use during any emergency or post-retirement. The employer and employees deposit a certain percentage towards PF every month. The percentage of money to be deducted from the employee’s salary and percentage to be contributed by the employer is predefined under EPF Act.
As per the government notification dated Sec 1(5) of the ESI Act the following entities are covered:
- Shops.
- Restaurants or hotels engaged only in sales.
- Cinemas.
- Road motor transport establishments.
- Newspaper establishments (which is not covered under the Factory Act).
- Private educational institutions.
