April 08, 2026
5 mins read
An Exempted PF Trust is a provident fund managed by an employer under Section 17 of the EPF Act. The contribution structure follows EPFO rules, while pension benefits stay with EPFO. These trusts must match EPFO interest rates and follow strict compliance standards. Charges are lower, and performance is regularly rated. Withdrawals and transfers follow set rules.
In many large organisations, the Provident Fund is not handled directly by the EPFO. An Exempted PF Trust is used by the company to handle it instead. Section 17 of the Employees' Provident Funds and Miscellaneous Provisions Act lets you set up this way.
Employers who are eligible for this method handle PF contributions on their own. The money has not been put in the EPFO. Today, more than 1,500 organisations in India operate under this model, including several public sector units.
Even so, these trusts must follow EPF rules. They must provide UAN access and pension benefits. This often leads to questions about how such trusts function.
Contributions under an Exempted PF Trust follow the same base structure as EPF. The rules remain familiar.
Employee and employer contribution: Both the employee and employer contribute 12% of the salary. This matches the standard EPF contribution rule.
Pension component allocation: From the employer’s share, 8.67% goes to the Employee Pension Scheme. The EPFO continues to manage this portion.
Lower administrative charges: Exempted trusts charge an inspection fee of 0.18%. Regular EPF accounts have a higher administration charge.
Responsibility for interest rates: The trust is in charge of its own money. It has to offer interest rates that are at least as high as EPFO rates.
Withdrawals from an Exempted PF Trust follow defined rules. These apply during job changes and retirement.
Withdrawal after job loss: Up to 75% of the PF balance can be withdrawn after one month of unemployment. The remaining balance is available after two months.
Pension eligibility: Pension benefits under the Employee Pension Scheme begin at age 58. This benefit remains under EPFO control.
Transfer during job change: PF balances can move to another exempted trust with a job change. They can also be transferred to an EPFO account.
Self-employment cases: Self-employment is treated as unemployment. Interest may become taxable if the balance stays inactive.
Read Also:- How To Withdraw PF Amount Online
The EPFO assigns scores to Exempted Provident Fund Trusts according to how well the Fund Trusts met the standards for Compliance and Fund Management.
Dates for contributions and investments: The dates of contributions and investments to the EPFO were used in determining whether the Exempted Fund Trusts made their Contributions to the EPFO on time; and investments also needed to be made immediately.
Interest rate declaration: Declared interest must match or exceed EPFO rates. This helps protect employee balances.
Claim settlement and audits: Claims must be settled within fixed timelines. Audits must follow EPFO guidelines.
Ongoing review process: EPFO reviews and publishes ratings at intervals. This supports transparency and accountability.
Exempted PF Trusts work under EPFO oversight. Over time, employees may notice a few practical differences.
Reduced administrative fees: The company will charge an inspection fee of 0.18% for employees. This is a lower fee than the typical EPF fees.
Ability to set varying rates of interest: Trusts may declare rates of interest at EPFO275 or above depending on compliance and overall performance of the industry.
Efficiency: The company is responsible for all questions regarding the performance of their products and services, including employee contributions and how those funds will be used. This may lead to quicker responses.
Tax treatment: Contributions up to ₹1.5 lakh qualify under Section 80C. Tax benefits depend on five years of service.
Although you are allotted a Universal Account Number, you cannot view your passbook or withdraw funds online through the EPFO portal. To check your PF balance, you need to get in touch with your employer's HR department or refer to your payslips.
Shifting from a regular EPF account to an Exempted PF Trust follows an online process. The steps are straightforward.
Start the transfer request: Log in to the EPFO portal using the Universal Account Number. Select the transfer option under online services.
Submit and track the request: After submission, the status can be tracked on the portal. Verification follows standard timelines.
Post-transfer updates: Once transferred, the balance no longer shows on the EPFO site. Statements are provided by the trust directly.
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You need to use the online transfer request form available on the EPFO website under the 'Online Services' section. This allows you to move funds between exempted and unexempted organisations.
You can ask your HR department or check your employer's trust status on the EPFO website. If your passbook isn’t visible online, it’s likely you're under an exempted PF trust.
The trust collects contributions, invests them, and ensures members receive the same or higher interest compared to EPFO. It must follow strict rules and report regularly to EPFO.
Yes. Withdrawals are permitted under the same conditions as EPFO—upon retirement, unemployment, or for specific financial needs. The process is handled by the trust.
Yes. Exempted PF trusts must provide interest that is equal to or more than what EPFO declares each year.
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