What is PF / EPF (Provident Fund)?
PF/EPF (Employees' Provident Fund) is a retirement savings scheme where you and your employer each contribute a portion of your basic pay every month.
Key takeaways
- PF/EPF (Employees' Provident Fund) is a retirement savings scheme where you and your employer each contribute a portion of your basic pay every month.
- PF / EPF (Provident Fund) matters when you read a salary slip, compare job offers, or plan your career.
- Knowing how PF / EPF (Provident Fund) works helps you make sharper, better-informed job decisions.
PF / EPF (Provident Fund) — meaning & explanation
The Employees' Provident Fund is a government-backed retirement savings scheme administered by the EPFO. Each month a percentage of your basic pay is contributed by you, with a matching contribution from your employer, into your PF account.
In India, EPF is mandatory for most establishments above a certain size. The accumulated balance earns interest and can be withdrawn or transferred when you change jobs, and your contributions may qualify for tax benefits.
Your PF contribution is deducted from your gross salary, which is one reason in-hand pay is lower than gross. When switching jobs, transferring your PF account using your UAN keeps your retirement savings continuous.
Related glossary terms
Basic Pay
Basic pay is the fixed core component of your salary, before allowances, on which many benefits like PF, gratu…
Gratuity
Gratuity is a lump-sum benefit an employer pays you for long service, typically after you complete five years…
CTC (Cost to Company)
CTC (Cost to Company) is the total annual amount an employer spends on you — salary plus all benefits and cont…
In-hand / Take-home Salary
In-hand (take-home) salary is the amount credited to your bank account each month after deductions like PF, pr…
Gross vs Net Salary
Gross salary is your total pay before deductions; net salary is what remains after deductions like PF, profess…
Put PF / EPF (Provident Fund) to work
More glossary terms
PF / EPF (Provident Fund) — FAQs
What does PF / EPF (Provident Fund) mean?
PF/EPF (Employees' Provident Fund) is a retirement savings scheme where you and your employer each contribute a portion of your basic pay every month.
Why does PF / EPF (Provident Fund) matter to a jobseeker?
Your PF contribution is deducted from your gross salary, which is one reason in-hand pay is lower than gross. When switching jobs, transferring your PF account using your UAN keeps your retirement savings continuous.
Is PF / EPF (Provident Fund) the same as Provident Fund?
Yes — PF / EPF (Provident Fund) is also commonly called Provident Fund, Employees' Provident Fund, EPF. PF/EPF (Employees' Provident Fund) is a retirement savings scheme where you and your employer each contribute a portion of your basic pay every month.
Now find the jobs that fit you
Build an AI-optimised profile in minutes, then apply to live roles with an exact fit score for each — so you only chase the ones you can win.