What Is Employees' Provident Fund?
The Employees' Provident Fund is run by a corporation with the same name with the Government asia. This is a social security organization and gives pension advantages of the large variety of organized workforce in the country. Why don't we start to see the important things about it.
Within this scheme, 12 percent of the employee's wages are deducted by the organization plus an equal amount is contributed by the employer also. It's done in establishments which have got a staff strength of 20 or over. In such cases, most of these organizations must fall under the jurisdiction in the scheme.
The actual interest rates is 9.5 percent about the deposits created by the employee. The worker may get a pension on his retirement or there's provision to the payment of the fixed amount to his family members on his untimely death.
Easy distribution of pension is amongst the advantages of this scheme. Under this scheme, a staff member must make a merchant account with any of the registered banks for payment of pension. Following the retirement of the employee, pension is disbursed by the organization for the employee concerned. All banks with tie ups usually offer a zero balance account for the pension holders. The pensioners usually obtain pension before the tenth day's monthly.
The problem behind the scheme is its reach. It is hard to locate all organizations having an employee strength of 20 or more. Nokia's have to pay to sign up on the organization this also subscription rate also prevents the organizations to join the scheme. Though the government is trying to really make the scheme an even more attractive and. generally speaking the scheme is a superb tool for social security.