Details about provident fund

Answer 1

Some general Provident Fund rules are:

1. Every month atleast 12% of the employees basic salary must be deducted and deposited as EPF

2. A contribution would be made by the employer as well into the employee's EPF account.

3. The PF account would earn an interest of 8-8.5% depending on what the government fixes every year.

4. An employee can make partial withdrawals from his PF account but he cannot close it until he remains in employment.

5. At the time of retirement, all the money that got accumulated in your PF account would be settled in full.

Answer 2

Every company that employs at least 20 full time employees has to deduct PF and deposit it to the EPF office. The amount deducted is 12% of the basic salary from the employees salary + the employer has to contribute an additional 12%

Answer 3

This is a portion of our salary that our employer deducts every month. This money is remitted to the government of India's PF trust. This money is used by our government for its cash needs. Once we retire or close our PF account, the money that has accumulated against our name would be given back to us. The money in our PF account grows at the rate of 8.5% per annum compounded every year.