Employee Provident Funds (EPF) is a scheme controlled by the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It is applicable for all establishment which employs 10 or more persons. It can also be obtained voluntarily by establishments having less than 10 employee. it‘s largely an employee benefit scheme prescribed by Government which provides facilities to the employees of an organization with regard to medical, retirement, child education, housing etc. It is created with the purpose to provide financial security and stability to employees.

It is obligation that employees’ drawing less than Rs 15000 per month, to become members of the EPF. As per the guidelines in EPF, employee, whose ‘basic pay’ is more than Rs. 15000 per month, at the time of joining, is not required to make PF contributions. Nevertheless, an employee who is drawing a pay of more than Rs 15000 can still become a member and make PF contributions, with the consent of the Employer