Employees Provident Fund

Exertion HR Employees' Provident Fund (EPF) services

Our aim is to facilitate a saving habit among employees and help them build a substantial retirement corpus.
We offer solutions for all PF issues, ensuring smooth implementation and compliance.
Our services include handling disputes under the EPF Act and conducting diagnostic reviews of PF compliances.
We rectify any non-compliances identified and provide guidance on contractor compliances.
Our team provides advisory services on salary base for PF contributions, ensuring accurate calculations.

We assist in monthly PF contributions and ensure compliance with all related regulations.

What is the difference between the Employee Provident Fund (EPF) and the Public Provident Fund (PPF)?

EPF (Employee Provident Fund): The EPF is a mandatory retirement savings scheme governed by the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. It applies to establishments with 20 or more employees, and both the employee and the employer contribute a percentage of the employee's salary to the fund. The employee's contribution is 12% of their salary, while the employer contributes an equal amount. The EPF scheme aims to provide a financial cushion to employees after their retirement. The funds accumulated in the EPF account can also be withdrawn under specific circumstances, such as buying a house or in case of medical emergencies.
PPF (Public Provident Fund): The PPF is a voluntary savings scheme governed by the Public Provident Fund Act, 1968. It is available to all individuals, including self-employed individuals, and provides an avenue for long-term savings and wealth creation. Individuals can open a PPF account with designated banks or post offices, and they can contribute a minimum of Rs. 500 and a maximum of Rs. 1.5 lakh per year. The contributions made to the PPF account are eligible for tax deductions under Section 80C of the Income Tax Act. The scheme has a tenure of 15 years, which can be extended in blocks of five years. The PPF offers a competitive interest rate, currently set by the government, and the accumulated funds can be withdrawn after the completion of the lock-in period.

Can self-employed individuals contribute to the Provident Fund?

What happens if an employer fails to deposit the Provident Fund contributions?
Here’s what happens in such a scenario:

Official Complaint: The affected employees have the right to raise an official complaint against the employer for non-payment or delayed payment of Provident Fund contributions. They can approach the concerned regional or sub-regional office of the Employees' Provident Fund Organization (EPFO) and lodge a complaint.
Department Action: Once the complaint is registered, the EPFO initiates an investigation into the matter. The EPFO may conduct an inquiry to verify the allegations made by the employees and collect necessary evidence.
Penal Action: If the EPFO finds the employer guilty of willful non-payment or delayed payment of Provident Fund contributions, appropriate penal action is taken under Sections 406 and 409 of the Indian Penal Code (IPC) as per the Indian Legal framework.

Section 406: This section deals with criminal breach of trust. If an employer misappropriates or decides not to deposit the employees' Provident Fund contributions despite deducting the same from their salaries, it can be considered a breach of trust.
Section 409: This section deals with criminal breach of trust by a public servant or a banker, merchant, or agent. If the employer, in his capacity as a public servant, banker, merchant, or agent, has misappropriated or failed to deposit the Provident Fund contributions, this section can be invoked.

How are ESIC contributions calculated, and who contributes to the fund?

Is the interest earned on the Provident Fund taxable?