HR & Payroll
Provident Fund
PF / EPF
Mandatory retirement savings scheme in India — employee and employer each contribute 12% of basic + DA every month.
What it means
Governed by the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, PF is mandatory for any establishment with 20+ employees. Employee contribution is 12% of (Basic + DA), matched by 12% from the employer. Of the employer's 12%, 8.33% goes to EPS (Employee Pension Scheme) and the balance 3.67% to PF.
For employees earning above ₹15,000/month basic, the statutory cap is ₹15,000 for employer contribution computation, though many employers contribute on full basic. Monthly ECR (Electronic Challan-cum-Return) filing is mandatory.
How Easedesk handles Provident Fund
Easedesk auto-computes PF, EPS and EDLI contributions every payroll cycle, generates the ECR text file ready for upload to the EPFO portal, and tracks UAN linkage for every employee. Form 11, Form 5/10/2 declarations are surfaced in the HR module.
Frequently asked questions
Is PF compulsory for all employees?
Yes for establishments with 20+ employees and for employees earning basic + DA up to ₹15,000/month. Above that, it's optional unless the employer chooses to extend coverage.
Related terms
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