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Employee Provident Fund is a retirement savings scheme for employees of the organized sector provided by the government. It is managed under the aegis of Employees' Provident Fund Organisation (EPFO) and is the main scheme under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. All establishments that have 20 or more people can be covered under the EPF scheme and some that have less than 20 also can also be covered, subject to certain conditions and exemptions. Only employees of companies registered under the EPF Act can invest in the EPF. It is mandatory for any employee whose pay is less than or equal to Rs 15,000 a month to join the EPF scheme, according to the rules. If any employee’s salary is more than Rs 15,000 and they wish to join the scheme, they can do so with the agreement of their employer and permission of the Assistant PF commissioner. As part of the scheme, both the employer and the employee contribute an equal amount- 12% of the employee’s basic salary and dearness allowance towards the EPF account. The amount is automatically deposited in the account when the salary gets credited. When the employee retires, they can withdraw the entire amount- self and employers’ contribution- that has been accumulated in the account with interest. For the current financial year, the interest rate on the EPF account has been fixed at 8.50%. More

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