The beneficiaries of EPF Scheme can avail the following benefits:
- EPF pension scheme
- Medical facility
- Housing scheme
- Family commitment
- Education of kids
- Funding of insurance premiums
Working of the Employees' Provident Fund Scheme:
According to the amendment that dates to 22 September 1997, the employee as well as employer contributes to this fund. This rate is fixed at 12% of the basic salary, DA, and retaining allowance (subject to the eligibility). However, a rate of 10% is also applicable in case of the following formations:
- An establishment covered before 22.9.1997 and having less than 20 employees.
- Any sick unit (as per clause (O) included as Sub-Section (1) in Section 3: Sick Industrial Companies (Special Provisions) Act, 1985), which has been declared sick by BIFR.
- Any establishment that has accrued deficit equal to or more than its total net worth at the end of any financial year.
Any establishment that manufactures: (i) guar gum, (ii) breed, (iii) coir, or (iv) jute.