The Employee Provident Fund (EPF) is a retirement savings scheme for salaried employees in India. It is managed by the EPFO.
Contribution Rules
Both the employee and employer contribute 12% of the employee's Basic Salary + DA.
- Employee's 12%: Goes entirely to EPF.
- Employer's 12%: 8.33% goes to EPS (Employee Pension Scheme) and 3.67%
goes to EPF.
Interest Rate
The interest rate is declared annually by the EPFO. It is calculated on the monthly running balance and credited at the end of the financial year.