PF
Provident fund: a retirement savings scheme for employees, run by the EPFO, to which both employee and employer contribute.
What it means in business
Under the Employees' Provident Fund scheme, a share of each covered employee's wages is set aside every month, and the employer adds a matching contribution. The employer deposits the contributions and files returns. Whether a business is covered depends on its size and the law, and the rates and wage limits are set by the government.
Example
A factory with a covered workforce deducts the employee's share from wages each month, adds its own share, deposits both with the EPFO and files the monthly return. This is an illustration of normal business use rather than a quoted case study.
How to use it correctly
Enrol covered employees, keep each person's UAN, deposit on time and file the return for the month. Keep payroll and the EPFO challan in agreement so the figures reconcile.
Common confusion
PF is not the same as ESI: PF is a savings scheme, ESI is insurance for medical and related benefits. Late deposits carry interest and damages. Contribution rates and limits change, so check the current figures.
Related glossary terms
Sources and further reading
Written on 24 October 2026 for lamp. Confirm the current rules with the official source or an adviser before relying on it.