Employees’ Provident Fund (EPF) Complete Guide 2025

What is the Employees’ Provident Fund (EPF)?

The Employees’ Provident Fund (EPF) is a statutory retirement savings mechanism, overseen by the Government of India, that secures the long-term financial well-being of salaried workers. Under this framework, both the employee and employer each contribute 12% of the employee’s basic salary plus dearness allowance into a dedicated EPF account every month. These contributions earn interest at a rate declared annually by the government, steadily compounding into a significant corpus. Upon retirement, or in defined circumstances such as purchasing a home or meeting urgent medical expenses, members may withdraw the accumulated balance in one lump sum.

Who Manages And Regulates EPF in India? A Brief History of EPFO Overview

The Employees’ Provident Fund Organisation (EPFO) administers the EPF scheme as a statutory body under the Ministry of Labour and Employment. Initially constituted by ordinance in 1951 and subsequently enshrined in the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, the EPFO’s remit extends beyond mere fund collection. It governs the maintenance of retirement savings, disburses monthly pensions under the Employees’ Pension Scheme, and administers deposit-linked life insurance cover, thereby delivering a comprehensive social-security net for India’s workforce.

What are the key schemes offered by the EPFO in India?

Since its inception, EPFO has structured its social-security framework around three complementary schemes, each addressing a distinct need in an employee’s financial journey. The Employees’ Provident Funds Scheme, 1952 (EPF), is the cornerstone, steadily accumulating your and your employer’s monthly contributions plus interest to form your retirement corpus. The Employees’ Pension Scheme, 1995 (EPS) then converts a portion of those savings into a guaranteed monthly pension once you cross age 58, ensuring you have a reliable income stream. Finally, the Employees’ Deposit Linked Insurance Scheme, 1976 (EDLI) provides life-insurance cover at no additional cost, offering dependents a financial safety net in the event of untimely demise.

What are the main objectives of the EPFO?

1. Single PF Account Per Employee: Ensure each worker maintains one consolidated EPF account throughout their career, eliminating fragmented balances.
2. Streamlined Compliance: Simplify registration, contribution remittances, and reporting processes for both employers and employees.
3. Uniform Rule Enforcement: Apply EPFO regulations consistently across all covered establishments to safeguard member interests.
4. Enhanced Digital Services: Continuously upgrade the online portal and mobile app for faster balance checks, KYC updates, and claim processing.
5. Rapid Claim Settlement: Shrink the turnaround time for EPF and pension disbursements from 20 days to just 3 days.
6. Promotion of Voluntary Compliance: Encourage entities not automatically covered under the Act to opt into the EPF system through awareness and ease-of-access measures. 

What are the Eligibility Criteria for EPF?

1. Organisation Size: Applicable to employees of establishments with 20 or more staff members.
2. Age Range: Open to individuals aged 18 to 54 years.
3. Salary Threshold: Your basic monthly salary (plus dearness allowance) must be at least ₹15,000.
4. Sector Coverage: Includes both public and private sector employees under these criteria.

How do EPF Contributions Work and How are they Calculated?

Your EPF contributions are a shared commitment between you and your employer to build a secure retirement fund. Every month, a fixed portion of your salary is deposited into your EPF account as follows:

1. Employee’s Share (12%): A straight 12% of your basic salary plus dearness allowance is automatically deducted from your pay and credited to your EPF account.
2. Employer’s Share (12%): Your employer matches your 12%, but divides it across several schemes:

• 3.67% into your EPF account
• 8.33% into the Employees’ Pension Scheme (EPS)
• 0.50% for deposit-linked life insurance (EDLI)
• 1.10% for EPF administrative charges
• 0.01% for EDLI administrative charges 

Note: The EPS contribution is calculated on a wage ceiling of ₹15,000 per month.

Example

Suppose your basic salary is ₹20,000. Here’s how the numbers break down each month:

• You (12%): ₹20,000 × 12% = ₹2,400
• Employer’s EPF portion (3.67%): ₹20,000 × 3.67% = ₹734
• Total credited to your EPF: ₹3,134

(The employer’s remaining contribution of ₹1,666 funds your pension, insurance, and covers small administrative charges.)

What are the Latest EPF Interest Rates & Calculation

The government sets the EPF interest rate annually, which applies to the balance in your active account:

• FY 2023–24: 8.15% p.a. epfindia.gov.in
• FY 2024–25: 8.25% p.a. newsonair.gov.in

How interest is worked out:

1. Divide the annual rate by 12 to get the monthly rate.
2. Multiply your month-end balance by this monthly rate to find that month’s interest.
3. EPFO credits the total interest once a year, at the close of the financial year, provided your account has remained active.

If your combined monthly EPF deposit is ₹2,350, and the annual rate is 8.25%, then:

• Monthly rate = 8.25% ÷ 12 = 0.6875%
• Interest for that month = ₹2,350 × 0.006875 = ₹16.16
• Over 12 months, these small amounts accumulate and compound, significantly boosting your retirement corpus when credited annually.

What Benefits does EPF provide for Employees?

EPF combines disciplined savings with government backing to help you build a robust retirement fund while offering several ancillary perks:

1. Retirement Security: Monthly contributions from you and your employer, plus accrued interest, form a substantial corpus you can draw on after retiring or upon qualifying events.
2. Employer-Employee Partnership: With both parties chipping in 12% of basic pay, your fund grows faster than a solo savings plan.
3. Tax Advantages: Your contributions (up to ₹1.5 lakh per year) qualify for deductions under Section 80C; interest earned and withdrawals at maturity are tax-free if the account remains active for at least five years.
4. Insurance Cover: Through the EDLI scheme, your family receives life-insurance benefits at no extra charge, adding a layer of protection to your savings. Emergency Liquidity: Partial withdrawals are permitted, for instance, to fund education, buy or build a home, or cover medical costs, so your EPF can also act as a safety net.
5. Minimal Risk: Being backed by the Government of India, EPF guarantees steady, government-declared returns without market volatility.

What is the Universal Account Number (UAN) and how does the EPFO portal work?

Your UAN is a 12-digit identifier that links all your PF accounts across different employers. Once activated on the EPFO portal, it lets you:

1. Download your passbook and track contributions in real time
2. Update KYC details online for faster claims and lower TDS
3. File transfer and withdrawal claims without paperwork
4. Receive SMS alerts for every transaction on your account

Read Blog About - What is UAN Number - Importance & Activation

How can I check my EPF Balance online?

1. EPFO Passbook (Web): Visit the EPFO member portal (https://www.epfindia.gov.in), log in with your UAN and password, and select “View Passbook."
2. UMANG App: Open the app, navigate to Employee Centric Services → View Passbook, and authenticate with your UAN.

When and How can I withdraw money from your EPF account?

1. Full Withdrawal (Lump Sum)

You may withdraw your entire EPF balance under any of these conditions:

• Retirement: Upon reaching age 58, you can claim 100% of your EPF holdings.
• Unemployment: If you remain unemployed for 60 days or more, you become eligible for full withdrawal.

Note: You cannot withdraw EPF funds while still employed under any EPFO-covered establishment.

2. Partial Withdrawal (Limited Amount)

EPF allows limited withdrawals before retirement for specific life events. You may draw up to a defined percentage of your balance, subject to conditions:

• Marriage (self or dependent)
• Higher Education (self, spouse, or children)
• Home Purchase or Construction
• Home-Loan Repayment
• House Renovation or Repair
• Medical Treatment
• Unemployment (after 1 month): Up to 75% of the balance if unemployed for 30–60 days; full balance after 60 days. 

3. Tax & TDS on Withdrawals

• Before 5 Years of Service:
• The withdrawal amount is taxable and added to your annual income.
• TDS of 10% applies if the pre-mature withdrawal exceeds ₹50,000 and you’ve provided your PAN; otherwise, 30% TDS applies. 
• After 5 Years of Service:
• Withdrawals (full or partial) are tax-free, with no TDS.

EPF Calculator: Estimate Your Retirement Corpus

An online EPF calculator projects your retirement corpus by simulating how your savings grow over time. By entering a few key inputs, you receive an estimate of your lump-sum balance and the total interest you’ll have earned by retirement.

Key inputs:

1. Monthly Salary (Basic + Dearness Allowance)
2. Your Contribution (%)
3. Employer Contribution (%)
4. Current Age
5. Expected Annual Salary Increase (%)
6. Current EPF Balance (optional)
7. Years Until Retirement

The calculator automatically factors in government-declared interest rates and the employer’s split between EPF and EPS contributions. By routinely checking with this tool, you can adjust your savings or career timeline to stay on track for your desired retirement goal.

Important EPF / EPS Forms:

How do I transfer my EPF account when changing jobs?

When you switch employers, your existing EPF balance doesn’t move automatically. To consolidate all contributions under one Universal Account Number (UAN) and ensure uninterrupted interest, use EPFO’s online transfer facility.

Why Transfer?

• Single Account Management: Avoid juggling multiple PF accounts across jobs.
• Continuous Interest Accrual: Consolidated balance earns uniform interest rates without gaps.
• Simplified Withdrawals: One account makes future withdrawals or pension claims hassle-free.

Prerequisites

• Active UAN: Your UAN must be activated and linked to your current EPF account.
• KYC-Complete: Aadhaar, PAN, and bank details should be approved on the EPFO portal.

Step-by-Step Transfer Process

1. Log In: Go to the EPFO Member e-Sewa portal ( https://unifiedportal-mem.epfindia.gov.in ) and sign in with your UAN and password.
2. Access Transfer Request: Navigate to Online Services → One Member – One EPF Account (Transfer Request).
3. Verify Details: Confirm your personal information and details of your previous employer.
4. Authorize Transfer: If prompted, complete Form 13 (Transfer Claim Form) or Approve using an Aadhaar-based OTP.
5. Submit Request: Enter the OTP sent to your mobile to finalize submission.
6. Employer Attestation: Your previous or current employer digitally approves within 3–5 days.
7. EPFO Processing: EPFO reviews and completes the transfer in 5–10 days.
8. Track Status: Under Online Services, click Track Claim Status to monitor progress.

How do you update KYC details in your EPF UAN?

Accurate KYC details (Aadhaar, PAN, bank account) on your UAN accelerate withdrawals, reduce TDS, and enable all digital KYC services seamlessly.

Why Update KYC Matters?

• Faster Claims & Transfers without paperwork.
• Lower TDS: Linking PAN caps TDS at 10% instead of 30% on premature withdrawals. 
• Instant Alerts: SMS notifications for every transaction and approval.

Documents Required for updating KYC

1. Aadhaar Card
2. PAN Card
3. Bank Account Details (with IFSC)
4. Passport / Driving License / Voter ID (optional)

Step-by-Step Process of updating KYC

1. Log In: Visit the EPFO Member e-Sewa portal and enter your UAN and password.
2. Navigate to KYC: Select Manage → KYC from the top menu.
3. Select Documents: Tick the boxes for each document you wish to update.
4. Enter Details: Provide exact document numbers and other required fields.
5. Save Submission: Click Save; status shifts to Pending for Approval.
6. Employer Verification: Your employer digitally approves within 3–5 business days.
7. EPFO Confirmation: EPFO completes validation; you receive an SMS once each document is “Digitally Approved.”

Tracking KYC Status

• UAN Card: Under View → UAN Card, a “Yes” denotes KYC approval.
• KYC Tab: In Manage → KYC, approved documents appear in the Digitally Approved KYC column.
• SMS Alerts: You’ll get real-time notifications at every approval step.

Read Complete Guide: Update KYC in EPFO & UAN Online 2025

Frequently Asked Questions (FAQs) about EPF

1. What is the Employees’ Provident Fund (EPF)?

A government-backed retirement savings scheme for salaried workers in India. Both the employee and employer contribute 12% of the employee’s basic salary (plus dearness allowance) each month. These contributions earn interest and accumulate into a lump sum payable at retirement or under specified conditions.

2. Who administers the EPF scheme?

The Employees’ Provident Fund Organisation (EPFO), a statutory body under the Ministry of Labour & Employment, established by the 1952 EPF Act. 

3. What schemes does EPFO offer?

• EPF Scheme, 1952: Core retirement savings vehicle.
• EPS Scheme, 1995: Monthly pension after age 58.
• EDLI Scheme, 1976: Deposit-linked life insurance cover at no extra cost.

4. Who is eligible to join EPF?

• Employed in an organisation with ≥20 employees
• Aged 18–54 years
• Basic monthly salary (plus DA) ≥ ₹15,000 

5. What is a Universal Account Number (UAN) and why is it important?

A 12-digit number linking all your PF member IDs across employers. Activating your UAN on the EPFO portal lets you view your passbook, update KYC, file claims, and receive SMS alerts. 

6. Can I contribute to EPF after leaving a job?

No. EPF contributions must be matched by the employer, without active employment (and an employer share), you cannot top up your EPF. 

7. Are there age criteria for EPF membership or EPS pension?

• EPF: No age restriction, anyone meeting eligibility can join.
• EPS pension: Only members below 58 years can join; at 58+, no new EPS membership. 

8. How is EPF contribution calculated for daily or piece-rate employees?

The total wages paid in a calendar month determine both employee and employer EPF contributions, just as for salaried staff. 

9. How can I check my EPF balance?

• EPFO Member Portal: Log in with UAN and password, then select View Passbook.
• UMANG App: Go to Employee Centric Services → View Passbook.

10. How do I transfer my EPF account when changing jobs?

1. Log in to the EPFO portal with your UAN.
2. Go to Online Services → One Member – One EPF Account (Transfer Request).
3. Verify and select your previous EPF account.
4. Get the OTP on your registered mobile, enter to authenticate.
5. Fill or download Form 13, get it digitally attested, and submit.

11. How do I update my KYC and contact details in EPF UAN?

1. Log in on the EPFO portal (UAN + password).
2. Navigate to Manage → KYC (or Contact Details).
3. Tick the documents/details you wish to update, enter the information, and click Save.
4. Employer approval in ~2–3 days, then EPFO verification; you’ll receive SMS notifications.

12. How can I track the status of my KYC approval?

• UAN Card Section: “Yes” under KYC indicates approval.
• Manage → KYC Tab: Approved documents appear in Digitally Approved KYC.
• SMS Alerts: You receive real-time updates at each stage. 

13. When and how can I withdraw EPF funds?

1. Full Withdrawal:

• On retirement.
• After 60 days of uninterrupted unemployment.

2. Partial Withdrawal: For marriage, higher education, home purchase/construction, home-loan repayment, house renovation, medical emergencies.

One can withdraw up to 75% after 30–60 days unemployment and the full balance after 60 days. 

14. What are the tax and TDS implications on EPF withdrawals?

• Withdrawals before 5 years’ service: Amount is taxable and added to income.
• TDS 10% if withdrawal > ₹50,000 and PAN provided; otherwise 30%.
• Withdrawals after 5 years: Tax-free with no TDS. 

15. How does EPFO recover PF dues from defaulting employers?

EPFO can attach and sell an employer’s bank accounts or property, recover dues from their debtors, file prosecution under Section 14 of the EPF Act, and even arrest or detain the employer under IPC Sections 406/409 and CrPC Section 110.

16. Who should I contact if denied PF membership?

First, approach your employer. If unresolved, file a complaint with the Regional Provident Fund Commissioner at your nearest EPF office.