It is one of the world’s largest organizations in terms of clientele and the volume of financial transactions undertaken by it. The Board is assisted by the Employees’ PF Organization (EPFO), consisting of offices at 122 locations across the country.
Every employee working in private companies is familiar with PF. PF is deducted from the salary every month. But what many people do not know is that PF is not just savings,
EPFO TYPS:
It is in two parts. One part goes to your Provident Fund (EPF) and the other part goes to the Employee Pension Scheme (EPS). Together, these two will secure your future.
Every month, 12% of the employee’s salary is deducted as PF. The company also deposits the same amount into your PF account. However, the share given by the company is divided into two parts.
Out of which, about 3.67% goes to EPF and the remaining 8.33% goes to EPS. Due to these two schemes, the employee gets a big benefit after retirement.
EPF stands for Employees Provident Fund. It is for employees working in companies registered with EPFO. If a company has more than 20 employees, it is mandatory to provide PF.
The amount deposited in EPF earns interest every year. The current interest rate for the year 2024–25 is 8.25%.
Through this scheme, you will create a secure fund for your future. There is also an option to withdraw some amount when the need arises. You can withdraw the entire amount when the job ends.
EPS stands for Employee Pension Scheme.:
It is designed to provide pension every month after the employee’s retirement. In this scheme, the company deposits 8.33% of the salary. If there is a PF contribution for at least 10 years, the pension starts coming after completing 58 years.
NOMINEE WHY:
After the death of the employee, the pension continues to his nominee (spouse or family member). This means that if savings come through EPF, then EPS provides income for life.
Both EPF and EPS together provide employees with a secure future after retirement. While one provides a lump sum of money, the other provides a monthly pension.
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