THE EMPLOYEE PROVIDENT FUND ORGANISATION: INDIA’S EMPLOYEE SAVINGS SCHEME

INTRODUCTION

The Employees’ Provident Fund Organisation (EPFO) is a statutory body under the Ministry of Labour and Employment, Government of India. It administers the provident fund scheme in India, introduced under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. Designed to provide long-term financial security to employees after retirement, the Employee Provident Fund (EPF) is one of the most crucial components of social security for salaried individuals in the organized sector.

In 2025, the EPFO introduced the New EPF Contribution Limit 2025 along with updated rules that impact how contributions are calculated. Both employees and employers make regular contributions to the fund, and the EPF Interest Rates Changes 2025 along with revised contribution limits provide a clear picture of potential savings for individuals planning their retirement.

WHAT IS EMPLOYEE PROVIDENT FUND (EPF)?

Employee Provident Fund is a mandatory retirement savings scheme for employees working in establishments registered under the EPFO India. Both the employer and the employee contribute a fixed percentage of the employee’s basic salary and dearness allowance to the EPF account each month.

Each employee is assigned a UAN (Universal Account Number), which acts as a unique identifier across different employers and jobs. The amount contributed is deposited in a centralized EPF account under the employee’s UAN, and the accumulated amount earns compound interest over time, helping build a significant corpus for retirement.

TMWala simplifies the entire onboarding process for EPF by guiding new employees through UAN activation and ensuring their EPF details are accurately updated and verified.

BENEFITS OF THE PROVIDENT FUND SCHEME IN INDIA

• Retirement Corpus: Accumulated contributions and interest form a substantial fund for post-retirement life.
• Tax Benefits: Contributions, interest earned, and maturity amounts are tax-exempt under specific conditions.
• Insurance Coverage: Under the Employees’ Deposit Linked Insurance Scheme (EDLI).
• Partial Withdrawals: Allowed for specific needs like home purchase, education, or medical emergencies.
• Loan Facility: Employees can apply for loans against their EPF balance.
• Portability: The EPF account remains the same even after changing jobs, linked through the UAN.

EMPLOYER CONTRIBUTION TO EPF

The Employer’s contribution to EPF is an essential part of the scheme. Currently, both the employer and the employee contribute 12% of the employee’s basic salary and dearness allowance.

The employer’s 12% share is distributed as follows:

• 3.67% to Employee Provident Fund
• 8.33% to the Employees’ Pension Scheme
• 0.50% to Employee’s Deposit Linked Insurance (EDLI) Scheme
• 0.50% for EPF administrative charges
• 0.01% for EDLI administrative charges

These contributions are made monthly and deposited into the employee’s EPF account.

HOW TO APPLY FOR EPF

To enroll in the Employee Provident Fund, employees need to follow these steps:

1. UAN Generation: The employer initiates the generation of the UAN (Universal Account Number) for every employee.
2. EPFO Member Portal Login: Employees must activate their UAN on the EPFO member portal login at https://unifiedportal-mem.epfindia.gov.in/memberinterface/.
3. Contribution Process: Post activation, both employee and employer begin monthly contributions.
4. Monitoring & Withdrawals: Employees can track their balance, interest, and contribution history via the portal and apply for withdrawals when eligible.

TMWala offers a dedicated support service to help employees set up their UAN, link Aadhaar and bank details, and access their EPF dashboard with ease.

HOW TO CHECK EPF BALANCE ONLINE

Knowing your EPF balance is crucial for managing savings and planning financial goals. There are several ways to check your balance under the heading How to check EPF balance online:

1. EPFO Portal

Steps to check balance via the EPFO portal:

• Visit https://www.epfindia.gov.in/site_en/index.php
• Navigate to ‘For Employees’ under the ‘Services’ tab
• Click on ‘Member Passbook’ under ‘Services’
• Log in using your UAN and password to view your passbook

2. UMANG App

• Install the UMANG (Unified Mobile Application for New-age Governance) app
• Register using your mobile number linked with your UAN
• Go to ‘EPFO’ > ‘Employee Centric Services’ > ‘View Passbook’
• Log in using UAN and OTP to access transaction history

3. Missed Call Service

Give a missed call to 9966044425 from your registered mobile number. Ensure your UAN is linked with PAN, Aadhaar, and a bank account.

4. SMS Service

Send an SMS in the format EPFOHO <UAN><Language Code> to 7738299899
Example: EPFOHO 123456789012 ENG

Supported languages include English, Hindi, Kannada, Tamil, Telugu, and others.

HOW TO TRANSFER EPF ACCOUNT ONLINE

Changing jobs does not mean losing track of your EPF savings. Here’s how to transfer an EPF account online:

1. Visit the EPFO member portal login
2. Go to the ‘Online Services’ tab and select ‘One Member – One EPF Account (Transfer Request)’
3. Verify personal details and PF account number
4. Choose your current or previous employer to validate the request
5. Submit the request online and track the status

Transferring your account ensures continuity and accumulation of your retirement corpus without any break.

EPF INTEREST RATE AND CONTRIBUTION TRACKING

For the financial year 2025–26, the EPF interest rate is 8.25%. The interest is calculated on the monthly running balance and added to the account annually.

Employees can use the EPF calculator available on several financial portals and the EPFO website to estimate their retirement savings based on inputs like:

• Monthly salary
• Annual increment
• Years of service
• Current interest rate

This helps individuals plan their retirement effectively.

NEW EPF CONTRIBUTION LIMIT 2025

The New EPF Contribution Limit 2025 refers to the wage ceiling currently set at Rs. 15,000 per month. This cap determines the maximum salary on which mandatory EPF contributions are calculated. Each year, the Employees’ Provident Fund Organisation (EPFO) reviews both the interest rates and the contribution limits. For the year 2025, while a review was conducted, there have been no changes to either the contribution limits or the interest rates.

Employees have the option to contribute either 10% or 12% of their basic salary towards the Employee Provident Fund (EPF). Employers match this contribution; however, out of the employer’s share, 8.33% is directed towards the Employees’ Pension Scheme (EPS), while the remaining portion is credited to the employee’s EPF account. Additionally, employers are required to contribute 0.5% of the basic wage to the Employees’ Deposit Linked Insurance (EDLI) scheme.

CONCLUSION

The Employee Provident Fund remains one of the most reliable savings instruments for salaried individuals in India. Managed by the Employees’ Provident Fund Organisation, this scheme ensures financial security during retirement through consistent savings and employer contributions. The initiative by EPFO India offers multiple benefits, including tax exemptions, insurance, partial withdrawals, and ease of access through digital platforms.

With increasing awareness, easy digital tracking options, and portability via UAN (Universal Account Number), the provident fund scheme in India plays a vital role in securing the future of millions of employees.

By understanding how to manage your EPF account, use the online facilities such as EPFO member portal login, and know how to check EPF balance online, employees can make informed decisions regarding their financial well-being.

TMWala acts as a one-stop platform for managing EPF-related tasks from checking balances, tracking contributions, to transferring accounts making retirement planning simple, transparent, and accessible.