What's Employees' Provident Fund?
The Employees' Provident Fund is run by an organization by the exact same name by the Government of India. It is actually a social safety organization and supplies pension added benefits towards the substantial quantity of organized workforce in the country. Let us see the advantages of it. Get additional information about EPF forms download
In this scheme, 12 % in the employee's salary is deducted by the organization and an equal amount is contributed by the employer also. It can be performed in establishments which have got an employee strength of 20 or above. In this case, all of those organizations have to fall under the jurisdiction of your scheme.
The existing price of interest is 9.five % on the deposits made by the employee. The employee may perhaps get a pension on his retirement or there is certainly provision for the payment of a fixed amount to his members of the family on his untimely death.
Quick distribution of pension is one of the benefits of this scheme. Below this scheme, an employee has to make an account with any in the registered banks for payment of pension. Immediately after the retirement of the employee, pension is disbursed by the organization towards the employee concerned. All banks with tie ups usually supply a zero balance account to the pension holders. The pensioners ordinarily get their pension before the tenth day of just about every month.
The issue behind the scheme is its attain. It's tough to locate all organizations with an employee strength of 20 or above. The providers must pay a subscription for the organization and this subscription price also prevents the organizations to join the scheme. On the other hand the government is attempting to make the scheme a a lot more appealing and very simple. normally the scheme is actually a superior tool for social security.