Indian Government renewed the Employee Provident Fund Ordinance Scheme, 1951 by branding it as the Employees' Provident Fund (EPF) Scheme, 1952. It is now renamed as The Employees' Provident Fund and Miscellaneous Act, 1952.
The government, employers and the employees are the members of the central board of trustees who look after the administration of this Act. Employees' Provident Fund Organization (EPFO) along with Ministry of Labor and Employment backs the board of trustees.
EPF is one of the best forms of long-term retirement savings as the interest earned and the amount withdrawn both are tax-free. Not only retirements, but EPF account is also used in cases such as if an employee resigns from the organization or if an employee gets deceased or if the employee requires medical treatment.
EPFO is one of the largest organizations all over the world with more than five crore members linked with it along with the number of transactions associated with it.
The contributions from various organizations are made at 12%, but for some of the organizations, it is only 10% because