Friday, 19 August 2016

What is Employees' Provident Fund?

The Employees' Provident Fund is run by an organization by the identical name by the Government of India. It is a social safety organization and offers pension rewards towards the huge variety of organized workforce inside the country. Let us see the positive aspects of it. Get a lot more details about EPF UAN status

In this scheme, 12 percent of the employee's salary is deducted by the organization and an equal amount is contributed by the employer also. It's done in establishments that have got an employee strength of 20 or above. Within this case, all of these organizations should fall under the jurisdiction with the scheme.

The current rate of interest is 9.five % on the deposits produced by the employee. The employee may perhaps get a pension on his retirement or there is certainly provision for the payment of a fixed quantity to his members of the family on his untimely death.

Straightforward distribution of pension is among the advantages of this scheme. Below this scheme, an employee has to create an account with any in the registered banks for payment of pension. Right after the retirement with the employee, pension is disbursed by the organization towards the employee concerned. All banks with tie ups generally offer a zero balance account towards the pension holders. The pensioners generally get their pension just before the tenth day of just about every month.

The problem behind the scheme is its attain. It can be hard to find all organizations with an employee strength of 20 or above. The organizations must pay a subscription towards the organization and this subscription rate also prevents the organizations to join the scheme. However the government is trying to make the scheme a more appealing and easy. in general the scheme is really a excellent tool for social safety.

1 comment:

  1. epf balance EPF or Employee’s Provident Fund (EPF) is a retirement benefit fund that is provided to all working employees