The Employees Provident Fund Act, 1962 has made the following provisions to protect the rights of members on their PF deposits:
- Co-partner or creditors of the member shall not have any claim on the amount deposited with EPF.
- Government cannot realize its claim or arrears from the PF deposited in the KSK.
- The members of EPF are entitled to receive a fixed rate of interest on their PF deposit until withdrawal or for a period of six years even after their retirement.
- Government of Nepal has guaranteed at least three percent interests annually on member's account.
The following provisions are made in the Act for institutional protection of the EPF:
- The EPF shall have preference right on the assets of institutional or individual borrower for realizing its arrears.
- The EPF can take possession of the security given by the borrower to realize its arrears by sale or otherwise.
- The EPF will not have obligation of government tax or other similar charges while taking possession of any property or while lending or realizing any loan.
- The EPF is free to determine the rate of interest on its investment.