Provident Fund (PF), governed by the Employees’ Provident Fund Organization (EPFO) under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, is a social security benefit provided to employees working in eligible organizations. It helps employees build long-term savings and retirement funds.
Any business in India that has 20 or more employees is legally required to register for PF. Even companies with fewer than 20 employees can opt for voluntary PF registration.
PF is a retirement savings scheme in which both employer and employee contribute monthly:
12% of basic salary from employee
12% from employer (split into PF and pension fund)
The employee receives the full amount (with interest) at the time of retirement, resignation, or under specific circumstances like medical emergencies or marriage.
Businesses with 20 or more employees
Organizations with fewer staff opting for voluntary coverage
Factories, IT firms, schools, hospitals, consultancies, and startups
Once registered, it is mandatory to:
Deduct employee share
Deposit contributions before the 15th of every month
File PF returns monthly and annually
PAN card of the business
Certificate of incorporation / business registration
Address proof (utility bill, rental agreement)
Employee salary and ID details
Cancelled cheque of company account
Digital signature (Class 2/3)
