Employees' Provident Fund Organisation

The Employees' Provident Fund Organisation (EPFO) is part of India's social security system, ensuring the financial security of employees. Operating under the jurisdiction of the Government of India's Ministry of Labour and Employment, the EPFO is entrusted with the regulation and oversight of provident funds in the nation, in conjunction with the Employees' State Insurance. It was established in 1951 through the enactment of the Employees' Provident Fund and Miscellaneous Provisions (EPF&MP) Act. The EPFO's responsibilities encompass the management of mandatory provident funds, fundamental pension schemes, disability and death insurance, as well as the facilitation of social security agreements with various international partners.

The first Provident Fund Act, passed in 1925 for regulating the provident funds of some private concerns, was limited in scope. In 1929, the Royal Commission on Labour stressed the need for creating provident funds for industrial workers. In the Indian Labour Conference held in 1948, it was generally agreed that the introduction of a statutory provident fund for industrial workers should be undertaken. The Coal Mines Provident Fund Scheme was launched in 1948. The success of this fund led to demand for its expansion to other industries.

The Constitution of India enacted in 1950 a non-justiciable directive that the State shall, within the limits of its economic capacity, make effective provisions for securing the right to work, to education and to public assistance in cases of unemployment, old-age, sickness & disablement and undeserved want. Accordingly, the last months of 1951 witnessed the promulgation of the Employees' Provident Funds Ordinance, which came into effect on 15 November 1951. It was later replaced by the Employees' Provident Funds Act. The Employees' Provident Funds Scheme, framed under Section 5 of the Act, was introduced in stages and came into force in its entirety by 1 November 1952. The cement, cigarette, electric, mechanical and general engineering products, iron, steel, paper, and textile industries were affected by the Act. The Acts and Schemes framed under it are administered by the Central Board of Trustees, which consists of representatives of Central and State governments, employers, and employees. The Board administers a contributory provident fund, pension scheme and an insurance scheme for the workforce engaged in the organised sector in India. The board is chaired by the Union Labour Minister of India.

The following three schemes are in operation under the Act:

Employees' Provident Fund Scheme, 1952

Employees' Deposit Linked Insurance Scheme, 1976

Employees' Pension Scheme, 1995 (replacing the Employees' Family Pension Scheme, 1971)

Supreme Court of India vide Civil Appeal 9284 Of 2013 stated that the Basic Wage under EPF and MP Act, 1952 can not be equated with Minimum Wage under the Minimum Wages Act, 1948. Thus, the Minimum Wage can be bifurcated into Basic and House Rent Allowance; and EPF can only be paid on Basic only.