EPF Registration is mandatory for all those organizations that have 20 or more employees. Such organizations are required to contribute a fixed amount towards Provident Fund out of employee salary.
EPFO is one of the social security organizations with a large volume of financial transactions taking place in the country. EPF benefits are availed by the employees on their retirement in the form of amounts accumulated in the Provident Fund. Employee Provident Fund which is commonly known as EPF, is basically a scheme governed and regulated by the Employee’s Provident Fund Organization (EPFO). EPFO is regulated and administered under the Employee’s Provident Funds & Miscellaneous Provisions Act 1952.
The employer contributes some proportion to the EPF fund along with the employee. The employer also adds his contribution that is inclusive of the employee pension scheme (EPS).
Provident fund acts as financial support at the time of retirement, illness, demise, disability or any similar risk occurred to the employee.
PF account of an employee needs not to be closed in case the employee switches his job as the same can be carried forwarded.