JD: Full form, Definition, Objectives
29/10/2025CV – Full Form, Meaning, Objectives, and Importance
29/10/2025« Back to Glossary Index
What is the Full Form of EPF?
The full form of EPF is Employee Provident Fund, & it is mandatory for private & and public companies with 20 or more workers.
What is EPF?
The Employee Provident Fund (EPF) is a government-managed retirement savings scheme intended to help employees lead a comfortable life post-retirement through a lump sum amount & a monthly pension paid with interest.
What are the Key Features of EPF?
The key features of the Employee Provident Fund include:
- Employee & Employer typically contribute 12% (Basic + DA (Dearness Allowance) towards EPF.
- Employees’ entire 12% EPF contribution towards EPF, whereas the employer contribution is split into 3.67% EPF & 8.33% towards EPS (Pension).
- Currently, the interest rate offered against EPF is 8.25% per annum (reviewed annually).
- Employee’s EPF contribution is eligible for a tax deduction under Section 80C (up to Rs. 1.5 lakh)
- The interest earned towards the Employees’ Provident Fund is generally exempted from taxes. However, contributions exceeding Rs. 2.5 lakhs (Rs. 5 lakhs for a government employee) in a financial year is taxable under the IT Act.
- An EPF member must complete a minimum of 10 years of service & attain the age of 58 years to get eligibility for a monthly pension.
What are the EPF Withdrawal Rules?
- The 13 withdrawal provisions have now been simplified into 3 categories: Essential Needs (Illness, Education, Marriage), Housing Needs, and Special Circumstances.
- Currently, the minimum service requirement for making a partial EPF withdrawal is fixed at 12 months.
- In case of unemployment, an EPF member can withdraw 75% EPF after one month and the remaining 25% after 12 months of continuous unemployment.
- For partial withdrawals, EPF members may not submit any documentation and enjoy automated claim settlements.
- Withdrawal before 5 years of continuous service is taxable, and TDS will be levied based on PAN submission.
Frequently Asked Questions (FAQ)
1. Can I have multiple EPF accounts?
Yes, if you change jobs, you may have multiple EPF accounts, later mergeable via UAN.
2. What happens to EPF after leaving a job?
Your EPF remains active and continues earning interest until withdrawal or job change.
3. Can NRIs contribute to EPF?
No, once an employee becomes a non-resident Indian (NRI), EPF contributions are not permitted.
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