Employees' Provident Fund (PF) is a type of standard deduction in payroll.
It is managed by the Employees' Provident Fund Organization, one of the two main social security bodies under the Government of India's Ministry of Labor and Employment.
A social security initiative of the government, PF provides a compulsory contributory fund for the future of employees after their retirement or for their dependents in case of an employee's early death.
PF is governed by a set of provisions in the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. It applies to organizations that employ at least 20 people.
As per the Act, the employee has to contribute a certain percentage of the salary towards PF. Similarly, the employer also makes an equal contribution. In most cases, the government (PF Board) collects this amount and keeps it in the employee's PF account. Every employee can log into the PF account anytime to check the current balance. After retirement, the entire contribution, along with interest, is paid back to the employee.
The PF compliance process is as follows: