The employee provident fund (EPF) is an employee saving scheme that allows workers who earn salaries working for the government or private establishment to get financial aid from the proceeds of their savings. The employees provident fund and miscellaneous provision act guide the registration of workers for the EPF scheme.
The act specifically provides that any company having more than twenty employees would be covered under the act. Also, the act shall continue to apply to an establishment even if their staff falls below twenty if such a company is covered under Schedule 1 of the act.
The scheme is essentially a welfare scheme for workers. It ensures that workers get tax free benefits from the proceeds of their income. The worker salary is invested over a period of time, and it is later claimed to meet different needs including insurance, retirement, housing, etc.