Employees’ Provident Fund Organisation (EPFO) 

What is EPFO?

• A statutory organisation created under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.
• Works under the Union Ministry of Labour and Employment.
• Responsible for managing retirement savings for workers in the organised sector.

Institutional Structure

• Administered by the Central Board of Trustees, a tripartite body representing:
  • Central & State Governments
  • Employers
  • Employees
• Chaired by the Union Labour Minister.
• Implements three major social security schemes:
  • Employees’ Provident Fund Scheme (EPF), 1952
  • Employees’ Pension Scheme (EPS), 1995
  • Employees’ Deposit Linked Insurance Scheme (EDLI), 1976

• Covers both Indian workers and international workers from countries with whom India has signed Bilateral Social Security Agreements.
• Ensures retirement savings, pension support, and insurance benefits to eligible workers.

Understanding the Employee Pension Scheme (EPS)

1. Provides monthly pension post-retirement (58 years).
2. Minimum 10 years of service is required.
3. Contribution breakup under EPF mechanism:
   • Employee: 12% of basic pay → Entirely into EPF
   • Employer: 12%, out of which
     • 8.33% → EPS
     • 3.67% → EPF