The Employee Provident Fund (EPF) Act, 2019 (1962) is a law in Nepal that helps employees save money for their future. It ensures that employees have financial support after they retire.
What is the Employee Provident Fund?
The EPF is a fund managed by the government. Both the employee and employer put a part of the employee’s salary into this fund every month. Over time, the fund grows with interest and can be used when the employee retires, resigns, or meets certain conditions defined by law.
Key Features of the EPF Act
1. Mandatory Contribution
- Employers and employees must contribute a fixed percentage of the employee’s basic salary.
- This helps build a steady retirement fund.
2. Eligibility
- All permanent employees in organizations with 10 or more staff are covered.
- Some government rules may include other employees too.
3. Withdrawal Rules
- Employees can withdraw money after retirement.
- Partial withdrawals are allowed for education, medical emergencies, or home purchase, following EPF rules.
4. Interest and Benefits
- The government gives interest on the EPF amount.
- This helps the fund grow faster, giving better financial security.
5. Employer Responsibility
- Employers must deposit contributions on time.
- They must also keep accurate records of employee contributions.
Why is the EPF Important?
- Financial Security: Provides steady income after retirement.
- Savings Habit: Encourages employees to save regularly.
- Social Protection: Acts as a safety net during illness, unemployment, or emergencies.
How to Register for EPF in Nepal
- Employers register their organization with the Employee Provident Fund Department.
- Employees are enrolled, and monthly contributions start automatically.
- Both employers and employees can check the EPF balance through the official EPF portal.
Employee Provident Fund Act, 2019 (1962) Nepal
Employee Provident Fund Act, 2019 (1962) Nepal: Download