EPFO Full Form

By BYJU'S Exam Prep

Updated on: September 11th, 2023

The EPFO full form is Employees’ Provident Fund Organisation. EPFO aims to provide Social Security to the workforce in the country. It is mapped as the world’s largest social security organization. Any organization which has more than 20 employees contributes to it. Basically, it ensures retirement benefits and does retirement planning for employees.

Employees’ Provident Fund Organisation (EPFO full form) provides social security to crores of employees in India. It was established in 1952, with the aim of providing a kind of financial security to employees in the organized sector. In this article, we will try to understand the EPFO full form, the formation of EPFO, and the role it plays in ensuring the social and financial security of crores of employees.

EPFO Full Form

EPFO Full Form is Employees Provident Fund Organisation. It is a body set up by law to assist the Central Board of Trustees in administering the EPF, EPS, and EDLI schemes for people employed in the organized sector in India. The employees have to contribute 12% of basic pay+dearness allowance+retaining allowance to EPF.

If the employees’ pay is Rs. 15,000 or more, the employer’s contribution to EPS is ₹ 1250 at the most and the balance of 3.67% goes to EPF. If the number of employees in an organization is less than 20, then the contribution rate for the employees and the employer is 10%. Employers contribute 0.5% of total wages towards EDLI, but not more than Rs 75 a month. Employees don’t contribute to EDLI or EPS.

EPFO Full Form in Hindi – ईपीएफओ का फुल फॉर्म क्या है?

EPFO का हिंदी में फुल फॉर्म (EPFO full form) “कर्मचारी भविष्य निधि संगठन” है। इसे अंग्रेजी में Employees’ Provident Fund Organisation कहते हैं। यह विश्व की सबसे बड़ी सामाजिक सुरक्षा संगठन है जिसके माध्यम से भारत के कर्मचारियों को पेंशन ,बीमा आदि की सुरक्षा प्रदान की जाती है।

EPFO Full Form – Historical Background

The Employees’ Provident Fund was introduced in Parliament with the main aim of providing the institution of Provident Fund for employees in factories and other establishments. The EPFO came into existence with the promulgation of the EPFO ordinance on 1st November 1951 before being replaced by the EPF Act of 1952.

The Act and the EPFO schemes are administered by a tripartite board- ‘The Central Board of Trustees. This board consists of a representative of Central and State governments’ employers and employees. The board is assisted by EPFO which has offices in 135 locations across the country.


Under this, account holders can view the passbooks of their EPF accounts that have been tagged with UAN. Also, if a member’s authenticated Aadhar and bank details are seeded against their UAN, they will be allowed to submit their withdrawal or transfer or settlement claims online.

The organization was launched in 1951 and governed by the Ministry of Labour and Employment, Government of India is indeed a blessing for those who are banking heavily on pension, provident funds, and deposit-linked insurance schemes to see them through tough times.

Organisation Structure of EPFO

The EPFO Act and all schemes under it are administered by the Central Board of Trustees (EPF). The EPF is a Tri-partite board. Representatives of the government (State and Central), employers, and employees make up the EPF, and it is headed by the Ministry of Labour and Employment.

Objectives of EPFO

EPFO Full Form (Employees Provident Fund Organisation) aims to provide Social Security for the workforce in the country. It is mapped as the world’s largest social security organization. Any organization which has more than 20 employees contributes to it. The EPFO’s main aim has been to extend the reach and quality of publicly managed income security programs. At a time, when interest rates at banks have been falling rapidly, the employees’ provident fund provides an interest rate of 8.65 %.

Another benefit is that an employee’s contribution towards an EPF account is eligible for tax exemption under section 80 C even as the interest rate earned is exempt from the income tax. Sometimes, an EPF account continues to earn interest even if it has been lying dormant for more than three years. EPF withdrawals are also not taxable after 5 years of continuous service unless the employer terminates his/her business, or the employee voluntarily quit his/her job.

EPFO Full Form – Role in Governance

The Employees Provident Fund Organisation’s (EPFO Full Form) main aim has been to extend the reach and quality of the publicly managed income security program. EPFO safeguards the vital life savings of lakhs of people and it is one of the most widely used investment schemes by the salaried class.

1st November is marked as the foundation day of EPFO as on the same day Employees’ Provident Fund scheme was rolled out in 1952. This was the first social security scheme under the EPF Act, beginning its journey within a few lakh beneficiaries, the EPFO now offers services to more than 4.5 crore employees who are engaged in around 6 lakh contributing establishments.

Schemes Launched By EPFO

The full form of EPFO is Employees Provident Fund Organisation. This organisation operates the following three schemes:

  • EPF Scheme 1952: Allows payment of accumulated savings plus interest upon retirement and death. Partial withdrawals are allowed for education, marriage, illness, and household construction. It also consists of housing schemes for EPFO members to achieve a vision of housing for all Indians by 2022.
  • Pension Scheme 1995: It has a monthly benefit for survivors, widows, and children upon disability or superannuation or retirement. It also carries a maximum pension on disablement besides past service benefits to participants of the erstwhile Family Pension Scheme 1971.
  • Insurance Scheme 1976 (EDLI): The benefit is provided in case of the death of an employee who was a member at the time of death. The benefit amount equals 20 times the wages with a maximum benefit of 6 lakhs.

Impact of EPFO

Recently e-governance initiatives of all coverage of the establishment’s online grievance redressal and online filing claims backed by universal account numbers have all generated a huge trust in public service delivery. Over the years, Employees Provident Fund Organisation (EPFO full form) has also increased interest rates even as banks reduced this.

Over the years, EPFO data has also become useful as an indicator of net employment generation in the formal sector. EPF contributors are also identified by the Universal Account Number (UAN). It is a 12-digit number i.e. allotted to an employee who is contributing to the EPF. It remains the same throughout the lifetime of an employee and does not change in jobs. Linking multiple-member identification numbers linked to it. The UAN also helps in the easy transfer and withdrawal of claims.


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