Dear All, I would like to know what is the benefit in contributing the amount to PF? Instead the same amount can be kept in the bank? And also want to know what is the interest would be getting?
From India, Bangalore
1From India, Bangalore
Provident fund is a scheme by govt of India in which some amount of an employee’s salary is deducted and the amount equal to the employees deducted salary is added to it by the employer and is kept in an PF account. This amount goes on accumulating monthly. A yearly 9.5% of compound interest is paid to this amount. This amount is given back along with the interest to the employee at the time of retirement or resignation. The employee can also withdraw non refundable amount for certain purposes like children education or marriage, purchasing immovable property, or to get treatment for illness etc.
These facilities are not provided by the Banks though the schemes are different. If you are keeping the same amount in bank the employer contribution will not be there. And the interest rate is also high compared to the bank interests in PF. For further details you can Google on.
From India, Mumbai
These facilities are not provided by the Banks though the schemes are different. If you are keeping the same amount in bank the employer contribution will not be there. And the interest rate is also high compared to the bank interests in PF. For further details you can Google on.
From India, Mumbai
Yes i agree with shreekant and also one more thing i would like to share. In some companies employee can raise their PF upto 100% on Basic, while employer will be contributing 12 % only
From India, Pune
From India, Pune
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PF Contribution on Leave Encashment - Clarification by EPFO.pdf