EPF is a provident fund program run by the Employees Provident Organisation (EPFO), the Central Government’s retirement fund organisation, for salaried employees who are not government employees. According to the Employees’ Provident Fund and Miscellaneous Provisions Act of 1952, any firm or a corporate entity with more than 20 employees is required to offer retirement benefits to its employees.
The current EPFO guidelines provide that each month, an employee must contribute up to a maximum of 12% of their base income and dearness allowance, and their employer must match that amount (12%). After retiring, employees can completely close their EPF accounts and transfer them when changing jobs. An EPF account may be partially withdrawn for a variety of purposes, including loan repayment, home purchase or construction, and family member medical care.