What is the EPF scheme?
The Employees' Provident Fund (EPF) is a mandatory savings scheme for employees in India, managed by the Employees' Provident Fund Organisation (EPFO). The scheme aims to provide financial security to employees post retirement through contributions made by both employees and their employers.

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What is the interest rate of the EPF scheme?
The EPF accumulates interest over time, compounded annually. The interest rate is declared annually by the finance ministry and is subject to change. As of May 13, 2024, the interest rate for the EPF for the 2023–2024 financial year is 8.25 per cent.

What is the EPF contribution limit?
Both the employee and the employer can contribute up to 12 per cent of the employee’s basic salary and dearness allowance (DA) to the EPF account. The minimum monthly contribution is Rs 1,800.

Is a voluntary contribution of more than 12% allowed?
Yes, an EPFO member can contribute more than 12 per cent of their basic salary. This is known as a voluntary contribution. As per the EPFO website, an employee can choose to contribute a higher percentage of their basic salary and DA, up to a total of Rs 15,000 per month, including both mandatory and voluntary contributions. Employees can also contribute based on higher wages (i.e., more than Rs 15,000) after obtaining permission from the Assistant Provident Fund Commissioner (APFC) or Regional Provident Fund Commissioner (RPFC), as per the provisions of Paragraph 26(6) of the EPF Scheme.

Will the employer's contribution also increase?
The employer’s contribution can be restricted to 12 per cent, even if the employee chooses to contribute more.

What tax benefits are available under EPF?
The EPF enjoys a tax-free status under the Exempt-Exempt (EEE) tax regime, meaning that contributions, interest earned, and withdrawals are all exempt from tax, provided certain conditions are met.