What's Employees' Provident Fund?
The Employees' Provident Fund is given by a corporation by the same name through the Government of India. It is a social security organization and gives pension advantages to the large quantity of organized workforce in the country. Let's start to see the important things about it.
In this scheme, 12 percent in the employee's salary is deducted through the organization plus an equal amount is contributed through the employer also. It is done in establishments that have got a staff member strength of 20 or above. In such cases, many of these organizations must fall under the jurisdiction of the scheme.
The current rate of interest is 9.5 percent for the deposits produced by the staff member. The employee could get a pension on his retirement or there exists provision for the payment of an fixed add up to his loved ones on his untimely death.
Easy distribution of pension is probably the important things about certainly. Under this scheme, a staff needs to make a merchant account with one of the registered banks for payment of pension. Following the retirement in the employee, pension is disbursed through the organization towards the employee concerned. All banks with tie ups usually give a zero balance account on the pension holders. The pensioners usually manage to get thier pension prior to the tenth day of on a monthly basis.
The situation behind the scheme is its reach. It is sometimes complicated to discover all organizations with an employee strength of 20 or over. The companies need to pay a regular membership towards the organization and this subscription rate also prevents the organizations to sign up the scheme. Even so the government is trying to help make the scheme a far more attractive and. generally the scheme is a great tool for social security.