Provident fund is an essential part of every employee in the Indian country. The fund act as safe hiding cocoon after working years. This a retirement benefit whereby 12% of the employee’s salary is set aside as a future investment. The provident fund is aided by both the employee and employer who also give a certain percentage for the saving. The PF is under the employee provident fund scheme and works for all salaried persons in the country.
The scheme has proper guidelines which help employees not to keep changing PF account whenever they get new jobs. One only needs to link his old account with new place of work and the employer will give few details in order to continue depositing. All the money is handled by the employee provident fund organization will release each member’s investment at their retirement age. However some withdraw the funds prematurely thus not getting the full benefit of the scheme.
What are the provident fund benefits?
Individuals who wait for the funds to reach the rightful years have a lot to enjoy in future. Retired members have a lot in their basket and cannot feel the retirement pinch. Below we have several benefits that come with the provident fund scheme.
PF entitles and pension
The large EPF scheme holds two other scheme that is PF and the pension scheme. When you invest in the provident fund scheme you are entitled to pension funds. This money is earn when gets to the age of 58 years. How can one get pension from PF scheme? Pension is the money taken after the retirement age. Government and other organization pay for the pension every month and have a fixed amount unless changes occur. For the PF the employee contributes 12% of the salary, 8.33% is taken to the EPS scheme which means employee pension scheme. This the pension money they will be receiving at retirement. The government has given a fixed amount of RS 3500 per month which has potential of increasing. Your family is also entitled to the benefits of the scheme in case of death they get all the benefits as planned.
Members will benefit from life insurance scheme. This an investment for the employee and their family members. It will help even the low earning to help them live comfortable. Retired employees don’t have to worry about insurance as the scheme has covered this too.
They may be referred as special occasion when something happens in the family. It might be education matters for your children, weddings etc. This might happen when you don’t have any funds. The PF through the EPF has a slot whereby the give one chance to withdraw and solve this issues. Here are some occasion you can benefit from in the provident fund scheme.
Marriage, education for your children and also your needs as an individual. The scheme gives 50% of the funds to this needs. This will help you when you are retired and don’t have to borrow from friends. You can also buy your house using the provident fund even at the retirement age.