What does the EPF Act 1952 say about employer obligations in India?
The Employees' Provident Funds and Miscellaneous Provisions Act 1952 (Act No. 19 of 1952) is the law governing provident fund, pension, and deposit-linked insurance for employees in India. It is administered by the Employees' Provident Fund Organisation (EPFO) under the Ministry of Labour and Employment. The Act applies to every establishment with 20 or more employees — and to many smaller establishments once they are covered, they remain covered even if the employee count drops below 20.
The Act creates three schemes: the Employees' Provident Fund Scheme 1952 (the PF itself), the Employees' Pension Scheme 1995 (the monthly pension), and the Employees' Deposit-Linked Insurance Scheme 1976 (life insurance linked to PF). Every covered employee automatically becomes a member of all three.
What are the EPF contribution rates in India?
Both the employee and employer each contribute 12% of the employee's basic salary plus dearness allowance (DA) every month. EPF is mandatory for employees earning a basic salary up to ₹15,000 per month. Those earning above ₹15,000 may opt in with employer consent.
| Contribution | Rate | Where it goes |
|---|---|---|
| Employee contribution | 12% of basic + DA | 100% to EPF account |
| Employer contribution — EPF portion | 3.67% of basic + DA | To EPF account |
| Employer contribution — EPS portion | 8.33% of basic + DA (capped at wage of ₹15,000 per month) | To Employees' Pension Scheme |
| EDLI + Admin charges | Paid by employer separately | Insurance and administrative costs |
The combined EPF + EPS contribution from the employer totals 12% — the same as the employee's contribution. All of this must be deposited with EPFO by the 15th of the following month. Delay attracts penal interest. Non-deposit is a criminal offence.
The EPF interest rate for FY 2024-25 is 8.25% per annum, declared by EPFO's Central Board of Trustees. Interest is computed monthly on the running balance but credited annually at the end of the financial year.
Is EPF mandatory for all employees in India?
EPF is compulsory for all employees earning a basic salary up to ₹15,000 per month in covered establishments. Employees earning more than ₹15,000 are called "excluded employees" under the Act but can voluntarily opt in with employer approval. Once an employee joins EPF (voluntarily or mandatorily), the employer cannot unilaterally remove them from the scheme.
Under Section 14 of the EPF Act 1952, an employer who defaults on PF contributions is punishable with imprisonment up to 3 years and a fine. When an employer deducts the employee's 12% share from salary and fails to deposit it, this additionally constitutes criminal breach of trust under Section 316 of the Bharatiya Nyaya Sanhita 2023 — which replaced Sections 406/409 of the IPC. Both remedies are available simultaneously.
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Ask Legal Setu — free, no account needed.How to check if your employer is depositing your PF in India
Before filing any complaint, verify the problem with your own EPFO records. Here are the ways to check:
- EPFO Member Portal (epfindia.gov.in): Log in with your UAN (Universal Account Number) and password. Click on "e-Passbook" and download your statement. It shows month-by-month contributions from both you and your employer. Compare with your salary slips — if months are missing from the passbook but your salary slip shows PF deduction, your employer is not depositing.
- UMANG App: Download the UMANG app, go to EPFO services, and log in with your UAN. You can view your passbook and contribution history on your phone.
- SMS alert: Send an SMS "EPFOHO UAN ENG" to 7738299899 from your registered mobile number. You will receive your latest EPF balance and last contribution details by reply SMS.
- Missed call service: Give a missed call to 011-22901406 from your mobile number registered with EPFO. You will receive your EPF balance by SMS.
Your UAN (Universal Account Number) is a 12-digit permanent number allotted by EPFO. It stays the same throughout your career. If you have never activated your UAN, visit the EPFO portal, click "Activate UAN," and follow the steps using your UAN, Aadhaar, and mobile number. Make sure your UAN is linked to your Aadhaar, PAN, and bank account for smooth withdrawal and transfer transactions.
What to do if your employer is not depositing PF — step by step
This is the point where most people want a lawyer.
₹99* books a verified lawyer, briefed on your case before the call.*₹99 is the platform booking fee. Your advocate’s own fee is quoted and agreed before the call.When and how can you withdraw your EPF balance in India?
EPF is primarily a retirement savings fund — early withdrawal attracts tax and depletes your long-term corpus. However, the rules permit partial and full withdrawals in specific circumstances:
Full EPF withdrawal in India
You can withdraw your full EPF balance in two situations: upon retirement at age 58, or after two consecutive months of unemployment (the first month allows 75% withdrawal; the second month allows the remaining 25%). You can apply online through the EPFO Member Portal using your UAN, provided your KYC (Aadhaar, PAN, bank account) is fully linked and your employer has updated your date of exit on the EPFO portal.
Partial EPF withdrawal in India — permitted purposes
| Purpose | Service required | Maximum withdrawal |
|---|---|---|
| Medical emergency (self or family) | No minimum | 6 months' basic salary + DA or employee's share with interest, whichever is less |
| Marriage (self, sibling, or child) | 7 years | 50% of employee's share |
| Education (self or child) | 7 years | 50% of employee's share |
| Home purchase or construction | 5 years | Up to 90% of total balance (EPF + employer share + interest) |
| Home loan repayment | 3 years | Up to 90% of total balance |
| Pre-retirement (age 54+) | Must be within 1 year of retirement | Up to 90% of total balance |
| Unemployment (first month) | 1 month unemployed | 75% of total balance |
If you withdraw your EPF before completing 5 years of continuous service, the withdrawn amount is added to your taxable income for that year. The employer's contribution and interest earned become taxable. After 5 years of continuous service, EPF withdrawal is completely tax-free. This is one of the strongest arguments for transferring your PF when changing jobs rather than withdrawing it — transfers keep the continuity of service clock running.
Common EPF problems in India — and exactly how to handle each
What if my employer deducted PF from my salary but I can see it was never deposited?
This is the most serious EPF violation — the employer has your money and has not deposited it. It is both a statutory violation under the EPF Act and a criminal breach of trust. Do not accept the employer's assurances about "processing delays" or "accounting issues" — these delays cannot legally extend beyond the 15th of the following month.
File the EPFiGMS grievance immediately. Simultaneously, send a formal written demand to the employer by email and registered post. If no resolution within 30 days, escalate to the RPFC and consider filing an FIR. EPFO has the power under Section 8F of the Act to recover outstanding dues by attaching and selling the employer's property — your money is not lost as long as you act.
What if my employer registered me under EPF but never gave me my UAN?
Your employer is required to allot a UAN to every employee and communicate it in writing. If you were never given your UAN, first check your salary slips — many payslips include the UAN. If not, ask your HR department directly. You can also search for your UAN on the EPFO portal using your name, date of birth, and mobile number. If the employer refuses to provide UAN details, file a grievance on EPFiGMS or contact your nearest EPFO Regional Office with your employment details.
What happens to my PF when I change jobs — can I carry it over?
Yes, and you should. When you change jobs, your UAN stays the same — only the member ID (PF account number) changes with the new employer. Do not withdraw your PF when changing jobs. Instead, transfer your balance from the old account to the new one using Form 13 on the EPFO portal. As of April 2024, EPFO has automated EPF account transfers for existing members when they switch jobs, making this even easier.
If you withdraw PF before 5 years of continuous service (across all employers), the amount becomes taxable. Transferring instead of withdrawing preserves your retirement corpus, keeps the service continuity intact for pension calculation, and avoids tax.
What if my employer says the company is closed and cannot pay outstanding PF?
Company closure does not extinguish the employer's liability to deposit outstanding PF contributions. The RPFC can recover dues from the directors and responsible persons of the company personally. Under Section 8F of the EPF Act, EPFO can attach and sell the company's property (and in some cases the personal property of directors) to recover outstanding dues. File your grievance and report to the RPFC immediately — do not wait for the company to "sort itself out."
EPF and PF not deposited India — questions people actually ask
Is it illegal for an employer not to deposit PF in India?
Yes. Under the EPF Act 1952, every covered employer must deposit both the employee's and employer's PF share with EPFO by the 15th of the following month. Failure is a criminal offence under Section 14, punishable with imprisonment up to 3 years and a fine.
How do I check if my employer is depositing my PF in India?
Log in to the EPFO Member Portal at epfindia.gov.in with your UAN and check your e-Passbook, which shows month-by-month contributions from you and your employer. If months are missing despite salary slips showing PF deductions, your employer is not depositing.
How do I file a complaint if my employer is not depositing PF in India?
File an online grievance at the EPFiGMS portal (epfigms.gov.in) using your UAN, mentioning the specific months PF was deducted but not credited. If no action follows, escalate to the Regional Provident Fund Commissioner, and as a last resort file an FIR for criminal breach of trust.
What is the EPF contribution rate in India?
Both employee and employer each contribute 12% of the employee's basic salary plus dearness allowance. The employee's 12% goes entirely to EPF. The employer's 12% splits into 8.33% for the Employees' Pension Scheme (EPS) and 3.67% for EPF.
When can I withdraw my EPF balance in India?
Full withdrawal is allowed on retirement at age 58, or after 2 months of continuous unemployment. Partial withdrawal is permitted for medical emergencies, home purchase (after 5 years), and marriage or education (after 7 years). Apply online through the EPFO Member Portal using your UAN.
What is a UAN and how do I use it to track my PF in India?
UAN (Universal Account Number) is a 12-digit permanent number allotted by EPFO, staying the same throughout your career regardless of job changes. Use it to log in at epfindia.gov.in, check your passbook, verify employer contributions, apply for withdrawal or transfer, and file grievances.
What happens to my PF when I change jobs in India?
When you change jobs, do not withdraw your PF — transfer it. Give your UAN to the new employer and transfer your balance using Form 13 on the EPFO portal. Withdrawing before 5 years of continuous service attracts income tax; transferring keeps continuity and avoids tax.
Can I file an FIR against my employer for not depositing PF in India?
Yes. When an employer deducts PF from salary but fails to deposit it with EPFO, this is criminal breach of trust under Section 316 of the Bharatiya Nyaya Sanhita 2023. File an FIR at your local police station against the employer's directors or responsible persons.
What is the EPF interest rate in India for 2024-25?
The EPF interest rate for FY 2024-25 is 8.25% per annum, declared by EPFO's Central Board of Trustees. Interest is computed monthly on the running balance but credited annually at the financial year's end. Delayed employer deposits lose interest for those months, costing you directly.
Employer not paying your salary or PF contributions?
Our AI will guide you through the EPFO online grievance process and explain which section your employer has violated — free.Official sources
- Employees' Provident Fund Organisation (EPFO) — official portal
- India Code — official repository of Indian Bare Acts