The Full form of PF is Provident Fund. It is also known as Employee Provident Fund (EPF). Provident Fund or EPF is a scheme for providing monetary benefit to all salaried individuals after their retirement. The process of PF is monitored by the EPFO (Employee Provident Fund Organisation) of India. Any organisation or company that has more than twenty employees must register itself with the EPFO. This scheme is regarded very beneficial for all salaried employees for developing a lump sum amount after their retirement.
In the process of PF, a specified amount is deducted from the monthly salary of an employee and is put into the EPF account. The amount collected in the Employee Provident Fund account is provided to the employees after they retire. The EPF or PF (Provident Fund) scheme was introduced in 1952 under the Employee’s Provident Fund and Miscellaneous Act. All the rules and regulations are defined by the Employee Provident Fund Organisation.
The activities of the EPFO are managed by the Ministry of Labour and Employment. In this process, the employer will deduct an amount from the monthly remuneration of his employee. As an employee start working in a firm, both the employer and the employee contribute 12% of the basic remuneration into the EPF account. This salary also includes D.A (dearness allowance) provided by the company.