The Employees' Provident Fund (EPF) is a government-backed investment and retirement savings option in India. Salaried individuals are eligible to open an EPF account when basic pay and dearness allowance are up to ₹15,000. You can further opt for voluntary provident fund (VPF), if the basic pay and DA exceed ₹15,000 per month.
For FY26, the Centre ratified the EPFO's suggestion of 8.25% interest rate for both EPF and VPF and interest credits were completed in July, PTI reported. This marked the third consecutive time the instrument delivered 8.25% returns on provident fund.
Today, we take a look at how key membership conditions and the frequently asked questions about EPF subscriptions.
According to the EPFO's official website, employees get membership only after the application of the PF Act to their organisation / company. Thus, for workers in a firm to which the Act is not applicable, cannot join the EPF.
In case your organisation is subject to and does not offer you EPF, an employee can approach the Regional Provident Fund Commissioner of the nearest PF office for further process.
Further, the PF Act applies to an organisation “as a whole”, according to the website, thus, its employees, irrespective of their place of work (headquarters or branch office) or location (outside the state), are eligible to become member of the Fund.
Notably, an employee cannot join the EPF directly. One can become a member only by way of employment in an establishment covered under the provisions of the EPF & MP Act, 1952. In a related matter, apprentices also cannot be EPF members but must be enrolled when they are hired as full-time employee.
How is an employees' EPF membership regulated if they work in more than one organisation? Membership is reckoned separately for each establishment. (Under different EPF account numbers / member IDs).
Can an employee become an EPF member without any age restriction? There is no age restriction for becoming a EPF member, but an employee who has already attained the age of 58 cannot become a member of the pension fund.
If an employee is transferred from one organisation to another, are they required to be enrolled as a member again? One is required to be enrolled as a member under the new organisation, for transferring PF from the previous account.
If a person works in an organisation without receiving wages could they join the EPF? No. Membership is allowed only where the wages are payable to an employee.
Further, employees drawing more than ₹15,000 per month can also choose to be EPF members under para 26(6) of the EPF Scheme. The option has to be submitted to the EPF office within six months of joining of such member.
Is an employee required to become a member of the EPF if they draw more than ₹15,000 (basic pay and DA) per month? Such employee is not required to become a member, if they are not already holding the PF membership. Otherwise, if both the employer and employee are willing, one can become a member by giving option under Para-26 (6) of the PF Scheme. The option has to be submitted to the EPF office within six months of joining.
Further, from 1 September 2014 a new employee joining an organisation with basic wage over ₹15,000 per month can become a member of the PF after submitting option as per the provisions of Para 26(6) of the EPF Scheme. However, they cannot get pension fund membership. Both the employee and employer share of 12% each shall be paid into the EPF only for all such employees.
Jocelyn Fernandes is a journalist and editor with nearly 13 years of experience covering the business, corporate, economy and markets beats in news.<br>
As chief content producer for around three years at Livemint (Hindustan Times), Jocelyn publishes breaking stories, explainers, features and live blogs on a range of business and economy topics, including the Budget, corporate developments, stock markets, income tax, money and personal finance, cryptocurrency, government policy, impact of US tariffs, international developments and more.<br>
Jocelyn's writing philosophy is focused on delivering news in an accurate and accessible format for readers. She thus focuses her news coverage on explainers and FAQs in order to breakdown business, corporate, economic, and policy topics that are of importance to everyday readers.<br>
She holds a Bachelors in Mass Media (BMM) and Post Graduate Diploma (PGD) in Journalism and Communication and has previously written for online business and markets news site Moneycontrol (Network18), Business-to-business (B2B) trade publications — the industry magazines Power Today and Solar Today (ASAPP Media), and the national news agency United News of India (UNI).<br>
Outside of work, Jocelyn keeps up-to-date with local and international news, enjoys reading fiction books, novels and short stories, and enjoys movies, travelling and art.
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