What is EPFO? All about the organisation and its importance for employees
The Employees’ Provident Fund Organization (EPFO) aims to promote employees to save funds for retirement
EPFO manages the Employees’ Provident Fund (EPF) scheme, which is a mandatory contribution scheme for employees. Both the employer and employee make monthly contributions. File Photo.
A non-constitutional body that is governed by the Ministry of Labour and Employment, the Employees’ Provident Fund Organization (EPFO) aims to promote employees to save funds for retirement through various schemes that cover Indian workers. One of its main schemes i.e., the Employees’ Provident Fund (EPF) is believed to be a mandatory contribution scheme for employees. As a part of this, both employers and employees can make monthly contributions to ensure financial security for employees.
Mainly functioning under the administrative jurisdiction of the Indian government’s Labour & Employment department, EPFO presently has about 122 offices across the country.
If you’re also entitled to EPF or any similar schemes under EPFO, read on to know in detail about the organisation, its objectives, and things to remember.
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EPFO: Key points
1. The Employees’ Provident Fund Organization (EPFO) mainly aims to administer and regulate the Employees’ Provident Funds Scheme (EPF), Employees’ Pension Scheme (EPS), and the Employees’ Deposit Linked Insurance Scheme (EDLI). All of these schemes provide financial security and retirement benefits to employees.
2. It is a compulsory contribution scheme through which both the employer and employee can make monthly contributions towards the employee’s provident fund account. The amounts are deducted from the employee’s salary and also consist of a portion of the basic salary and dearness allowance.
3. Through EPFO, employees can make long-term savings and ensure financial discipline, further encouraging individuals to build a retirement corpus.
4. All the contributions made in the EPFO schemes will be paid to employees upon retirement, resignation, or other specified conditions. They can also withdraw a certain amount of EPF for specific purposes.
EPFO: Primary goals
1. EPFO ensures that each employee has only one EPF account.
2. Compliance with different EPFO schemes must be made as simple as possible.
3. EPFO must ensure that all concerned organisations follow all of the rules and regulations regularly.
4. EPFO encourages and promotes voluntary compliance.
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