Eligibility Criteria For Employees' Provident Fund


The Employees’ Provident Fund Organisation (EPFO) is an organization that helps people save money for their retirement. The organization comes under the Ministry of Labour and Employment in India and started in 1951.

The EPFO covers companies with at least 20 employees, and sometimes even smaller businesses, depending on specific rules and exceptions.

Eligibility Criteria for the EPF Scheme

Here’s a list detailing the eligibility criteria for the Employees’ Provident Fund (EPF) scheme:

  • Geographical Coverage: All states in India are covered under the provisions of the EPF scheme.
  • Mandatory Registration: Salaried employees with a monthly income of up to ₹ 15,000 are required to register for the EPF scheme.
  • Optional Registration: Employees with a monthly salary exceeding ₹ 15,000 can opt for EPF registration, but it’s subject to approval from the Assistant PF Commissioner.
  • Employer Size: Organizations employing more than 20 individuals are mandated to register for the EPF scheme.
  • Voluntary Registration: Organizations with fewer than 20 employees can voluntarily opt to join the EPF scheme.
  • Benefits Entitlement: Once registered, employees become eligible for various EPF benefits, including insurance and pension benefits, after becoming active members of the EPF program.

These criteria ensure that a wide range of employees can benefit from the EPF scheme, securing their financial future.

Eligibility for Employees

Opening an EPF account is mandatory for employees earning a salary of Rs. 15,000 or more. Apart from them, individuals at any income level can choose to join EPF voluntarily.

Here, employees are required to contribute a minimum of 12% of their salary to the Employees' Provident Fund, but they have the option to contribute more if they like.

Eligibility for Employers

It’s mandatory for an employer with 20 or more employees to register under the EPF scheme. If they employ less than 20 people, they can decide to register under the scheme (in this case, it’s voluntary). During the registration process, the employer has to provide company details and owner information. Employers can register for the EPF scheme from the official EPFO website.

What are the Rules for PF Contribution?

In EPF, both employees and employers contribute 12% of the employee’s monthly salary to the Employee Provident Fund (EPF).

While employees are not obligated to match employer contributions of up to 12% of their income, they can decide to do so voluntarily.

What is the EPF Contribution Percentage?

The employer’s contribution is calculated as 12% of the total basic wages, dearness allowance, and retaining allowance. Employees also contribute an equal amount.

If an organization employs less than 20 employees and meets other EPFO criteria, both employee and employer contributions are limited to 10%.

Out of the employer’s contribution, 8.33% is directed to the Employees’ Pension Scheme, based on a calculation using a salary of Rs. 15,000. If the basic pay is less than Rs. 15,000, 8.33% of the actual amount is directed to EPS. The remaining amount, apart from this 8.33%, is retained in the EPF scheme. After retirement, the employee receives their share and the share kept in their EPF account by the employer.

How to Apply for EPF?

To apply for a new EPF account, employees need to go to their employer. Here, they need to provide previous employment details by using Form 11, if any, and family or nomination details using Form 2.

What are the Eligibility Criteria for PPF?

To open a Public Provident Fund (PPF) account, one must be an Indian resident above the age of 18 years. Minors can also have a PPF account, but it should be opened by a guardian, with a maximum deposit of Rs 1.5 lakh per financial year.

All citizens are eligible for tax exemption under Section 80C, up to Rs 1.5 lakh per year. EPF and PPF work together to provide a stable retirement fund.


What are the eligibility criteria for an Employer under EPF?

An establishment with 20 or more employee have to register under the EPF scheme.

What are the eligibility criteria for an Employee under EPF?

An employee earning more than 15000/- on a monthly basis is eligible for the EPF scheme.

What is the minimum contribution that an employee can make under EPF?

Employees are required to contribute a minimum of 12% of their salary to the Employees Provident Fund.