What is provident fund in salary?

Answer 1

The Government wants to tell us the importance of routine saving over a long time. This lumpsum given during retirement can be used by the employee to continue his life without being financially dependent on anyone and stand on his own legs...

Answer 2

Provident fund is a retirement corpus that is provided to all employees. Every month 12% of your basic salary is deducted and deposited into the PF account for as long as you are employed. At the time of retirement this corpus, including the accumulated interest is paid out to you

Answer 3

For every employee 12% of his/her basic salary is deducted and contributed as Employee contribution of PF. Similarly another 12% is added by the employer and contributed as Employer contribution to PF

Answer 4

The EPF or Employee Provident Fund is created by the Employees Provident Fund Organization (EPFO) of India, a statutory body of the Indian Government under the Labor and Employment Ministry. It states that an organization having 20 or more permanent employees on its payroll, should register with the EPFO.

A Provident Fund is a fund that is created, through contributions, to provide financial support to individuals in their future (Specifically for post-retirement). The Employee Provident Fund is just such a fund. Contributions are made on a monthly basis, by both employees and employers, thereby encouraging employees to save a portion of their salary each month. Investments made by millions of employees across India are pooled together and invested by a trust.

The EPF is a tax free investment instrument for the salaried class. Interest earned on it is tax free, and returns are also not taxed. You also get a deduction under Section 80C for contributions made towards your EPF.

Answer 5

It is the amount of money that goes from your salary towards the EPF account

Answer 6

It is maintained with the EPF Organization in India which is owned by the Indian government

Answer 7

If he employs more than 20 people as permanent employees - Yes