Here’s everything you must know about the provident fund.
The Meaning
Provident fund is a retirement benefit that the companies provide to their employees on a compulsory basis as per EPF Act 1952.
The provident fund acts as security for the employees after they leave their job.
Employees invest a fixed portion of their income into this provident fund account managed by the provident society or PF office of the company where they work/serve.
For the unintended, PF is governed by the Provident Fund Act, 1925.
Who can Open a PF Account?
The following types of employees can open a provident fund account:
- People working in industries, commercial establishments, factories
- Those who draw wages under the Payment of Wages Act
- Employees engaged in public works
- Domestic servants
- Miners working mines other than coal mines
What is a Provident Fund Calculator?
Provident Fund Calculator helps you to easily calculate your monthly PF payment.
Online PF calculators are simple to use. It calculates provident fund interest rate, provident fund monthly income based on your provident fund account balance, and provident fund maturity amount.
Online PF Withdrawal
You can now withdraw your PF from the comfort of your home. All thanks to the online pf withdrawal process.
In COVID times, a good number of employees have withdrawn a part of their provident fund just using their mobile devices.
What are the benefits of PF?
The top two benefits of PF are:
- Higher Returns Than Other Bank Deposits
: Over time, the provident fund has given higher returns than other forms of investments such as fixed deposits and recurring deposits in banks.
- Tax Saving
: If contributions made to PF accounts by an employer are deductible under Section 80C, employees can save Income Tax up to Rs 1 lakh per annum.
There you go.
That’s all you need to know about PF.
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