What is Employee provident fund services?
The EPF or the Employees’ Provident Fund is a retirement benefits scheme in which an employee and the employer contribute a percentage of the amount for the financial security of the employee. This fund is payable with interest gained over the years to the employee on retirement.
EPF or the Employees’ Provident Fund is the primary scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, managed and governed under the aegis of Employees’ Provident Fund Organization (EPFO is a statutory body under the Labor Ministry of the Ministry of Finance in India). Like a Provident Fund Scheme in general, the EPF scheme requires a percent of the contribution from the employee’s salary towards the scheme and the employer has to make an equivalent contribution as well.
Documents for EPF Registration of an Employee
The documents required for EPF registration are:
Proof of date of birth;
Salary Receipt indicating the grade and salary;
Proof of designation;
Bank A/c number with IFSC code;
Primarily, there are 3 types of provident funds:
1.Public Provident Fund is covered under the Public Provident Fund Act, 1968 for any person whether in employment or not who may contribute to this scheme;
2.Statutory Provident Fund (SPF) for Government employees;
3.Recognized Provident Fund for organizations that employ 20 or more employees.
The distinguishing feature is that the EPF is not restricted to one employer i.e. even if you switch your job, your EPF scheme will continue and can be transferred from one employer to the other. It is instrumental in helping private-sector employees to save a portion of their salary every month towards a retirement benefit. The amount under this scheme is deposited at the Employee Provident Fund Organization (EPFO). These investments made by several employees towards the Provident Fund are pooled together collectively and invested by a trust.