EPF or Employee Provident Fund is the govt.-managed retirement saving scheme controlled by the Employees� Provident Funds and Miscellaneous Provisions Act, 1952 which provides social safety net to employees after their retirement. EPF registration is applicable on all establishments which employ 20 or more persons working under formal sector only. Under EPF scheme, an employee has to pay a 12% contribution of (basic salary + dearness allowance + retaining allowance) and an equal contribution is paid by the employer.

It is mandatory for employees� drawing less than Rs 15,000 per month to become members of the EPF. An employee who is drawing a pay of more than Rs 15,000 can still become a member and make PF contributions, with the consent of the Employer and Assistant PF Commissioner.

The employer before paying the employee�s salary must deduct the employee�s contribution from his wages. Then the same is payable to the EPFO, within 15 days of the close of every month.