EPF-Employee Provident Fund
EPF is an establishment used as a platform for saving by individuals who are working in the public, private or even government sectored societies. This article will elaborate more on what the fund really about, how you can join, how you can easily have your EPF calculated based on basic salary and other allowances, what the interest rate on the fund is and how much one is allowed to save during their membership period with the fund.
First of all the Employee Provident Fund can be defined as, an establishment which has been formed to provide members with the sufficient financial security and enough stability to sustain them well during their old retirement age. A person can became a member and commence with the contributing of the necessary fund to the organization when he or she becomes an employee. The required contributions will be made on a regular basis.
The primary purpose as to why the organization was formed is because it plays a huge part in motivation of the employees to enable them save at least a part of their salary every month. Just visit their members portal which is provides to you all the required details. Afterwards you can easily enjoy their provided services. It is vital to note that once you became a member, you are required to list member ID information with UAN,so as to view the transfer/claiming process or the actual file.
The fund was formed by parliament in 1952 under the MP act and later on come into play from in March4th, 1952. The functions of the provident fund are been executed by the provident fund organization. The amount a person is required to contribute is 12% of cash [food] allowances and basic wage and Dearness Allowance [ DA]. The input contributions are being used towards the growing of your provident fund account.
Provident fund organization is a statutory body created by the Indian government which is under the ministry of Labour and employment. Under the fund there are currently 3 schemes that are implemented
This scheme is applicable to members who have done 20 years oftheir service and then retire on reaching the age of 58years.
- Retiring pension
This is applicable to those members who have offered 20 years of their life to the service but have to retire before reaching the mark of 58 years
- Pension of short service
Only applicable to those members who have offered 10 years or more of their life to the service but let than 20 years.
Once you have joined and have become a registered member, you are entitled to the numerous benefits that come with the provident fund such as pension and insurance benefits.
A person can easily register online and later download the e- passbook. You should execute claims forms, return forms and EPF enrollment form once you have become a registered member making the required contributions. This fund is important in that it enable one to save for the future thus protecting and safeguarding yourself and your family.
Register here: http://india.gov.in/register-online-view-your-epf-account-passbook
Benefits of EPF Account
Major advantage with Employ Provident Fund is Income Tax exemption under Income Tax Section 80c.
EPF India Web: http://www.epfindia.com/