In this both employee and organization should contribute money every month and it is credited to after retirement of employee with interest provided by bank. It is good financial support and secure policy.
PF INTEREST AND ITS CONTRIBUTIONS:
For all government employee there is a benefit of EPF (Employment Provident Fund) which is provided by provisions act 1952. It will give an assurance of 15000 with consent of Assistant Commissioner and employee. Under these scheme an employee get deducted 12% from his salary to EPFO (employee provident fund organization). 12% of employee will get 8.33% as pension scheme.
Opening balance of employee is calculated by previous year bal + monthly contributions + total interest
Voluntary provident fund (VPF):
If employee want to save more money than he can contribute money of his salary voluntarily and its produce tax free and it is optional and it’s depend upon his interest.
Withdrawal PF amounts:
A person who is doing a job continuously for 60 days or 2 months can withdraw 75 % of total PF amount. He should raise a withdrawal to get PF fund. One can draw process of money by online methods. On raising request it will take 1520 days to get your claim. One can with draw money after filling UAN based form 19 in online process.
Advantage for employee:
No employee should not wait for retirement age one should claim that in time of working under some of circumstances such as
Loans on houses
Purchasing new house
Marriage of children
Main condition to take money is that he should be a member of PF for minimum of 3 years.
Conditions for availing benefits:
One should possess unique 12digit id and it is same for all employment time which is used for withdrawal of money
Main aim is in this both employee and organization should contribute money every month and it is credited to after retirement of employee with interest provided by bank. It is a good financial support and secure policy.