PF and its Benefits
The Provident Fund (aka) PF is another name for the pension fund. Though it is a forced saving, it is one of the very good forms of investments. PF serves as a social security for employees working in India. The key purpose of PF is to help employees to save a fraction of their salary every month so that the same can be used in situations such as - he/she is temporarily unable to work or no longer able to work, or at the time of retirement. Both the employer and employee contribute 12 percent of the basic salary towards EPF. The employees’ 12 percent contribution goes to their EPF, while from the employer’s contribution, 8.33 percent of the total 12 percent is invested in EPS or pension scheme, and the balance 3.67 percent is invested in EPF. Further, the employer also contributes to the administration of the benefits under the Act. The EPF offers several benefits for the employees. EPFO recently highlighted 5 important advantages for being the member of EPF, which are a...