Provident Fund (PF)

Meaning & Definition

Provident Fund (PF)

A Provident Fund (PF) is a compulsory savings and retirement program created to enable individuals to save for their future financial well-being. The Employee Provident Fund Organization (EPFO) manages these funds. Upon retirement or under specific conditions, the accumulated savings, along with any earned interest, are given to the employee, ensuring financial support during retirement or in times of necessity

> Back to HR Glossary

Frequently Asked Questions (FAQ's)

  1. How do I check my PF balance?

    • Visit the UAN portal on the EPFO website. Log in with your UAN and password. Go to the "View" section and select "Passbook" to check your PF transactions and balance.
    • Send an SMS to 7738299899 in the format EPFOHO UAN ENG (replace "ENG" with the first three characters of your preferred language). Receive an SMS with your PF balance.
    • Give a missed call to 011-22901406 from your registered mobile number. Receive an SMS with your PF balance details.
    • Download and install the UMANG app. Log in with your UAN and OTP. Navigate to the EPFO section to view your PF balance.

  2. What is PF minimum salary?

    Establishing an EPF account is mandatory for individuals with a salary of Rs. 15,000 or more, but those at any income level can voluntarily choose to enroll. Mandatory contributions entail a minimum of 12% of the salary, with employees having the choice to contribute additional amounts voluntarily.

  3. Can I withdraw my PF amount?

    Yes, you can withdraw your PF amount. You may initiate the withdrawal process after leaving employment or upon meeting certain criteria, such as unemployment for a continuous period.

  4. What is EPF passbook balance?

    The EPF passbook balance refers to the cumulative amount in an employee's Provident Fund account. It details contributions made by both the employee and the employer, along with interest earned. This passbook serves as a record of transactions and helps individuals track their PF balance over time.

  5. Who is eligible for PF?

    Employees in India, drawing a basic salary and dearness allowance of up to Rs. 15,000 per month, are typically eligible for a Provident Fund (PF). However, certain establishments may have different criteria, and employees in specific sectors might be covered by different provident fund schemes.

  6. What are the 4 types of PF?

    There are four major provident fund (PF) schemes in India:

    • Employee Provident Fund (EPF): Applicable to employees in establishments with 20 or more workers.
    • Public Provident Fund (PPF): Open to the public for long-term savings.
    • Voluntary Provident Fund (VPF): An extension of EPF where employees can contribute more than the mandatory 12%.
    • Employees' Pension Scheme (EPS): Part of the EPF scheme provides a pension after retirement.

  7. How many years is PF eligible?

    The eligibility period for Provident Fund (PF) contributions typically aligns with the duration of employment. As long as an individual remains employed and draws a basic salary along with a dearness allowance, they are eligible to contribute to the PF. There is no specific limit on the number of years for PF eligibility during continuous employment.

  8. How is PF divided?

    The Provident Fund (PF) is divided into two components: the employee's contribution and the employer's contribution. The standard contribution rate is 12% of the employee's basic salary and dearness allowance for both the employee and the employer.

    However, there are variations in specific cases, such as higher voluntary contributions by the employee or additional contributions by the employer for administrative charges and the Employees' Pension Scheme (EPS).

  9. Can I withdraw 100% PF?

    Under some situations, you can withdraw the entirety of your Employee Provident Fund (EPF) amount. You can take a complete withdrawal from your EPF if you are jobless for more than two months in a row or if you are unemployed for one month and then find employment again for fewer than two months. It is advisable to confirm the most recent instructions with the Employees' Provident Fund Organization (EPFO), as specific rules and qualifying criteria may vary.

  10. For what reasons can PF be withdrawn?

    • At the time of retirement.
    • After two months of unemployment.
    • If unemployed for more than one month and not re-employed for two months.
    • For medical treatment of the account holder or family members.
    • In the case of permanent disability.
    • When an account holder is moving abroad permanently.
    • In the event of the account holder's demise.

    Each withdrawal reason may have specific conditions and documentation requirements, and the eligibility criteria can vary.

Unleash the true potential of your workforce

See Darwinbox in Action