The Employees' Provident Fund (EPF) is a key social security initiative established by the government to promote long-term savings among employees. It is designed to provide financial stability and support after retirement by helping employees accumulate a substantial corpus over the course of their careers.

Under this scheme, both the employee and employer contribute a fixed percentage of the employee’s salary on a regular basis. These contributions are compulsory and are deposited into the employee's EPF account, earning interest over time. The EPF thus serves as a retirement savings mechanism, ensuring that employees have a reliable financial cushion once they retire or in times of need.

1. The origins of the Employees' Provident Fund (EPF) trace back to the enactment of the Employees' Provident Funds Ordinance on November 15, 1951. This ordinance was a pioneering move by the government to introduce a formal savings mechanism for employees.

2. It was later replaced by the more comprehensive Employees' Provident Funds Act of 1952. The legislative process began with the introduction of the Employees' Provident Funds Bill, presented in Parliament as Bill No. 15 of 1952. The primary objective of this bill was to establish provident funds for employees working in factories and other specified establishments.

3. With time, the law was expanded and refined, eventually taking the form of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, which is still in force today. This Act extends to the entire territory of India and continues to serve as a foundational pillar of employee social security in the country.

4. The administration of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, along with its associated schemes, is entrusted to a tripartite body known as the Central Board of Trustees (CBT), Employees' Provident Fund.

5. The CBT is a statutory body that plays a crucial role in overseeing and managing the operations of the EPF. It is composed of representatives from three key stakeholders:

1. The Government – both Central and State representatives

2. Employers – representing various industries and sectors

3. Employees – representing the interests of the workforce

6. This tripartite structure ensures balanced decision-making and inclusive governance, allowing the EPF system to effectively address the needs and concerns of all parties involved.

7. The Central Board of Trustees (CBT) is responsible for administering three key social security schemes under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, which are aimed at safeguarding the interests of the organized sector workforce in India:

1. Employees’ Provident Fund (EPF) Scheme, 1952

2. Employees’ Pension Scheme (EPS), 1995

3. Employees’ Deposit Linked Insurance (EDLI) Scheme, 1976

8. To carry out its responsibilities effectively, the CBT is supported by the Employees’ Provident Fund Organisation (EPFO). The EPFO has a widespread presence with 147 offices across the country and is tasked with the day-to-day implementation and enforcement of these schemes.

9. The EPFO operates under the administrative control of the Ministry of Labour & Employment, Government of India, ensuring that the EPF framework remains aligned with national labor policies and social security objectives.

From the start of their employment, all employees working in establishments covered under the EPF Act are eligible to become members of the Employees’ Provident Fund (EPF).

The responsibility for managing EPF deductions and deposits lies with the employer, who ensures timely contributions on behalf of both the employee and themselves.

Typically, the contributions are shared equally:

1. Employee’s contribution: 12% of basic wages, dearness allowance, and retaining allowance (if any)

2. Employer’s contribution: 12%, out of which 8.33% goes to the Employees’ Pension Scheme (EPS) and the remaining to the EPF