Employee PF and Its Importance
Employee provident funds, or EPF, are a good way to save for retirement and have a substantial sum saved for retirement. In addition, they are tax-free, as the employer contributes up to a certain limit of 12% of your Basic Salary. These funds are designed to encourage a gradual savings program. Depending on your circumstances, you may be able to withdraw your entire amount or just a portion of it.
The amount of Pension you can withdraw from your PF account is calculated based on how much you would normally be earning at the time of your retirement. The amount is calculated on the average salary that you have drawn during your working life. This amount varies depending on your company EPF plan you work for.
You can access your EPF account by using your UAN (Unique Identification Number) and submitting Form 31 through your employer. If you want to transfer your balance to a new employer, you can do this through your employer. However, you should check with your employer to ensure that your UAN KYC is up-to-date.
A large percentage of the amount you contribute to your EPF account goes towards your retirement. This money is tax-free and is contributed to your retirement account by both the employer and employee. The EPF Act requires employers to make EPF contributions if they have at least twenty employees. In addition, it’s compulsory for domestic employees earning under INR 15,000 per month, but can be voluntary for those who earn more.
A Provident fund is one of the best savings, giving you a maximum tax benefit.
At the time of contribution, you will get tax benefits; at the time interest on your PF fund, you will get tax-free, and at the time of withdraw also, you will get tax-free on this.
And also, the PF fund has protection from the Central Govt. scheme. Hence it is a secured fund.
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