# What is EPFO & PF?

EPFO & PF stands for Employees' Provident Fund Organisation.

The Employees' Provident Fund (EPF) is India's mandatory retirement savings scheme governed by the EPFO for establishments with 20 or more employees.

## EPFO & PF explained

Under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, employees and employers each contribute 12% of basic wages plus dearness allowance (DA). For the employee, the entire 12% goes into the EPF account.

The employer's 12% contribution is split: 8.33% is allocated to the Employees' Pension Scheme (EPS) capped at a monthly wage ceiling of ₹15,000 (equating to ₹1,250/month), and the remaining 3.67% goes to the EPF. Employers also pay 0.5% toward the Employees' Deposit Linked Insurance (EDLI) scheme and 0.5% in EPF administrative charges.

Monthly Electronic Challan cum Return (ECR) filing and remittance must be completed by the 15th of the following month on the EPFO unified portal. Failure to file on time attracts damages under Section 14B and penal interest under Section 7Q.

Official source: [Employees' Provident Fund Organisation India](https://www.epfindia.gov.in)

## How NeuralHR.AI handles EPFO & PF

- [PF & ESIC payroll software India](https://neuralhr.ai/en/payroll-software-india-pf-esic)
- [Best payroll software India](https://neuralhr.ai/en/best-payroll-software-india)

## Related terms

- [ESIC](https://neuralhr.ai/en/hr-glossary/esic): ESIC is India's statutory social security and health insurance scheme providing medical and cash benefits to formal-sector workers earning up to ₹21,000 per month.
- [Form 16](https://neuralhr.ai/en/hr-glossary/form-16): Form 16 is the statutory tax deduction certificate issued annually by Indian employers under Section 203 of the Income-tax Act, 1961 to employees whose salary had TDS deducted.
- [Gratuity (India)](https://neuralhr.ai/en/hr-glossary/gratuity-india): Indian statutory gratuity is a mandatory lump-sum retirement benefit payable to employees with 5 or more years of continuous service under the Payment of Gratuity Act, 1972.
- [Professional Tax (India)](https://neuralhr.ai/en/hr-glossary/professional-tax-india): Professional Tax (PT) in India is a state-level direct tax levied on salaried individuals and professionals under Article 276 of the Constitution of India.

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Last verified: 2026-08-29

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