PF account: PF is a very useful scheme. PF scheme is being run through the government. The scheme is administered through the Employees’ Provident Fund Organization (EPFO).
Every establishment having 20 or more employees is covered under it and certain organizations which employ less than 20 persons are also covered subject to certain constraints and exemptions. People also get many benefits of PF account.
PF scheme
The employee and the employer contribute 12% of the basic salary and dearness allowance of each employee to the EPF. After the employer retires, he gets a lump sum amount which includes both his and the employer’s contribution apart from the interest on both. Currently the interest rate on EPF deposits is 8.15% per annum. At the same time, people should also be aware of the benefits of PF, lest some wrong steps are taken regarding PF without knowing the benefits, which may be regretted later.
PF
Employees’ Provident Fund Organization (EPFO) is a non-constitutional body that encourages employees to save money for retirement. This organization is governed through the Ministry of Labor and Employment, Government of India. The schemes offered through the organization cover Indian workers and international workers (from countries with whom EPFO has signed bilateral agreements).
Benefits of the scheme
EPF scheme helps in saving money in the long run. There is no need to make lumpsum investment in this scheme. It is deducted on a monthly basis from the salary of the employee and this helps in saving a huge amount in the long run. It can help an employee financially during emergencies. It helps in saving money at the time of retirement and helps a person to maintain a good lifestyle.
