October 04, 2025
5 mins read
If you're working for a large organisation in India, there's a chance your Provident Fund (PF) isn't managed by the EPFO but by your employer through an Exempted PF Trust. Under Section 17 of the Employees’ Provident Funds and Miscellaneous Provisions Act, certain companies are allowed to manage PF contributions in-house instead of depositing them with the EPFO. Currently, there are over 1,500 such companies in India, including large corporations and public sector undertakings.
These Exempted PF Trusts are still required to follow EPF rules and offer benefits like the Employee Pension Scheme and Universal Account Numbers (UAN) for employees. But how do they actually work, and what makes them different from regular EPF accounts? Let’s explore everything you need to know if you're part of one.
In an Exempted PF Trust, both the employee and employer contribute 12% of the employee's salary to the provident fund, just like in the standard EPF scheme. Out of the employer's 12% contribution, 8.67% is directed to the Employee Pension Scheme (EPS), which is still managed by the EPFO.
Unlike regular EPF members, employees in an exempted PF trust pay a lower inspection charge of 0.18%, instead of the 1.1% admin fee charged under EPF. Over time, this can mean cost savings for both employers and employees.
These private PF trusts must match or exceed the interest rate set by EPFO, and they manage employee funds independently.
If you work for an organisation that falls in the exempted list, you are allowed to withdraw up to 75% of your Provident Fund balance one month after losing your job. The remaining 25% becomes available for withdrawal after two months. Once you reach the age of 58, you become eligible to receive a pension through the Employees' Pension Scheme.
If you move from one organisation with an Exempted PF Trust to another, you can transfer your PF balance to the new employer's trust. If you join a company registered under the regular EPFO system, you may transfer your PF balance to the EPFO.
If you shift into self-employment or move to the unorganised sector, it is treated as unemployment. In such a case, you may either withdraw your PF amount after two months or choose to leave it as it is. However, if you retain the balance without any active employment, the interest earned on it may become taxable.
Read Also:- How To Withdraw PF Amount Online
The EPFO assigns ratings to Exempted PF Trusts based on six important criteria that reflect performance and compliance. These include the timely transfer of provident fund contributions, timely investment of funds, and prompt remittance of money to the trust.
You should also know that the trust must declare interest rates that are at least equal to, if not higher than, those set by the EPFO. In addition, timely settlement of claims and proper audit compliance are considered.
These ratings are reviewed and published by the EPFO at regular intervals to promote transparency and ensure that your PF is managed responsibly.
Operating under the umbrella of the EPFO, Exempted PF Trusts offer several advantages:
Employees in these trusts are charged only 0.18% as an inspection fee, unlike the 1.1% administration fee in standard EPF.
Private PF trusts can declare interest rates that are equal to or higher than the EPFO’s rates.
Private trusts may offer quicker grievance redressal and more responsive customer service compared to EPFO.
Just like EPF, contributions up to ₹1.5 lakh are eligible for deductions under Section 80C. Employer contributions and interest are also tax-free. But, if you leave the job before 5 years of service, the employer contribution and interest become taxable.
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.
If you are moving from a regular EPF setup to an Exempted PF Trust, you can transfer your PF balance online. Start by logging into the EPFO portal using your Universal Account Number (UAN). Go to the 'Online Services' tab and choose the 'Transfer Request' option.
After submitting the form, you can track the status directly through the portal. Once verified, your PF balance will be transferred from your previous EPF account to the new exempted trust. Keep in mind, once the funds are moved, you will no longer see the balance on the EPFO site—you will need to contact the trust directly for any updates or statements.
To process a PF transfer, the following information is essential:
Bank account details
Registered mobile number
Being part of an Exempted PF Trust means your Provident Fund contributions are managed by your employer, not directly by the EPFO. While the trust handles operations independently, it must comply with all EPFO guidelines under Section 17 of the EPF Act.
Your benefits—such as access to the Employee Pension Scheme and your Universal Account Number (UAN)—remain protected under the same laws. It is important to understand how your retirement funds are being managed, especially when withdrawing funds, checking interest rates, or switching employers. Staying informed empowers you to make better financial decisions for your future.
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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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