Provident fund is a welfare scheme for the benefits of the employees by govt of India. Under this scheme both the employee & employer contribute their salary part but whole of the amount is deposited by the employer itself with administrative charges.
Employer deducts the employee share from the CTC of the employee. Deductible amount goes in Provident fund, Pension fund and EDLI accounts. The interest earned on this investment is also credited in PF account of the employees. At the time of retirement, the accumulated amount is given to the employees, if certain conditions are satisfied.
EPF Act covers every establishment in which 20 or more persons are employed and certain organizations are covered on statutory basis, subject to certain conditions and exemptions even if they employ less than 20 persons each on voluntary basis.
