For an establishment employing 20 or more employees, EPF is mandatory. As per the law, those earning Rs 6500 or less at the time of PF enforcement are eligible to become members. Others can also become members, but only if the employer deems it appropriate and agrees to contribute their share of 12% at a higher salary level for the employees. Once covered or becoming a member, they continue to be a member regardless of their salary.
Upon coverage, the employer must submit the required forms as specified by the EPF Enforcement Officer. As a member, one has to contribute 12% of their salary (Basic + DA) towards EPF. The employer makes a similar contribution, divided as 8.33% and 3.67% into the Employees' Pension Scheme Fund and Employees' Provident Fund, respectively.
The fund allows a member to take advances for specified purposes and also provides pension benefits. There is a wealth of discussions on this topic available in the Labour and Employees Forum. Please verify that as well.
Regards,
Madhu.T.K