What is the Employee Provident Fund?
The Employee Provident Fund (EPF) is a savings scheme created by the government to help employees save for their retirement. It is a mandatory social security program in many countries, including Nepal. The primary objective of the EPF is to provide financial stability and security to employees after they retire.
Here’s how the EPF typically works:
- Contributions: Both employees and employers contribute monthly to the EPF account, with employees contributing a percentage of their salary, matched by the employer.
- Interest Earnings: EPF funds earn higher-than-usual interest rates, declared by the government or authorized body managing the EPF.
- Withdrawal: Employees can withdraw from their EPF account in specific situations like retirement, resignation, or emergencies such as illness.
- Tax Benefits: Employee contributions qualify for tax deductions, and the interest earned is generally tax-free under income tax laws.
- Portability: When changing jobs, the EPF account can be transferred to the new employer, ensuring consistent savings.
- Nomination: Employees need to nominate beneficiaries who will receive the accumulated funds in case of the employee’s demise.
Employee Provident Fund Act, 2019 (1962) Nepal
Employee Provident Fund Act, 2019 (1962) Nepal: Download