What is the Full Form & Meaning of EPF?
The full form of EPF is the Employees’ Provident Fund. EPF is a popular savings scheme managed by the Employees’ Provident Fund Organisation (EPFO) under the Government of India. EPFO is a non-constitutional body that helps employees save for retirement.
Both the employee and employer contribute 12% of the employee’s basic salary and dearness allowance to the EPF. The current interest rate on EPF deposits is 8.15% per year. The interest earned on the EPF is tax-free, and employees can withdraw the total amount, including interest when they retire. Employees can easily access various EPF services through the official online portal, which is designed to be user-friendly, transparent, and efficient.
Who is Eligible To Join EPF?
- The Employee Provident Fund (EPF) is available to employees in both the public and private sectors, meaning all employees can join EPF India.
- Any company with 20 or more employees is required to provide EPF benefits to its workers.
Benefits of EPF
- Capital Growth: The EPF scheme offers a fixed interest rate on the deposited amount. Over time, this interest helps increase the funds, leading to capital growth.
- Emergency Fund: The EPF can serve as an emergency fund during unexpected situations, offering financial support when needed the most.
- Retirement Fund: A portion of the employer’s contribution (around 8.5%) goes into the Employee Pension Scheme. This helps build a solid retirement fund, providing financial security after retirement.
- Partial Withdrawal: EPF members can withdraw part of their funds for specific needs, such as higher education, building a house, medical treatment, or wedding expenses.
- Tax Benefits: Contributions to the EPF are eligible for tax exemption under Section 80C of the Income Tax Act. Additionally, earnings from the EPF are tax-free, up to a limit of ₹1.5 Lakh.
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