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ARTICLE · 25 OCTOBER 2024

The EPFO's Circular Dated 7 October 2024: A Paradigm Shift Or An Overreach?

Khaitan & Co.
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The Employees' Provident Fund and Miscellaneous Provisions Act, 1952, (EPF Act) is a socio-beneficial legislation that was enacted to benefit an employee...

IndiaEmployment and HR
Jeevan Ballav Panda
Jeevan Ballav Panda
Dhriti Mehta
Dhriti Mehta
Tapamoy Ghose
Tapamoy Ghose
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Overview

The Employees' Provident Fund and Miscellaneous Provisions Act, 1952, (EPF Act) is a socio-beneficial legislation that was enacted to benefit an employee, and his dependants post his retirement. Under the EPF Act, all eligible employees are required to contribute 12% of their monthly pay (which includes basic wages, dearness allowance, retaining allowances and other regularly payable allowances), up to INR 15,000. The establishments covered under the EPF Act also make an equal contribution for each eligible employee. While the employee's entire contribution goes directly to the provident fund, only 3.67% of the employer's contribution is allocated to the provident fund, with the remaining 8.33% directed to the Employees' Pension Fund.

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