What's Employees' Provident Fund?
The Employees' Provident Fund is run by a business through the same name by the Government asia. It is just a social security organization and offers pension advantages of the huge variety of organized workforce in the united states. Allow us to understand the great things about it.
Within this scheme, 12 percent from the employee's wages are deducted through the organization and an equal amount is contributed through the employer also. It is done in establishments which have got a worker strength of 20 or more. In such cases, many of these organizations must fall under the jurisdiction of the scheme.
The current interest rate is 9.Five percent on the deposits produced by employees. Employees may get a pension on his retirement or there exists provision to the payment of your fixed amount to his loved ones on his untimely death.
Easy distribution of pension is among the benefits of this scheme. Under built, a staff member has got to make a free account with some of the registered banks for payment of pension. After the retirement of the employee, pension is disbursed from the organization towards the employee concerned. All banks with tie ups usually offer a zero balance account to the pension holders. The pensioners usually get their pension prior to tenth day of every month.
The situation behind the scheme is its reach. It is not easy to get all organizations with the employee strength of 20 or above. Nokia's need to pay to join on the organization which subscription rate also prevents the organizations to join the scheme. Though the government is intending to really make the scheme a much more attractive as well as simple. generally speaking the scheme is a great tool for social security.