Do you know that Provident Fund is the only investment scheme that provides investment, pension and insurance. The best part is that your employer also has to contribute atleast 12% of your Basic
Do you know that Provident Fund is the only investment scheme that provides investment, pension and insurance. The best part is that your employer also has to contribute atleast 12% of your Basic salary+HRA.
1. What is Provident Fund?
2. Employee Provident Fund (PF) Overview
• Employee Provident Fund or EPF or PF as normally
referred is a retirement scheme for Private sector
employees. 12% is compulsorily deducted from your
salary and 12% is contributed by the employer.
• You may contribute higher % from your salary but
there is no such obligation on the employer.
• The amount accumulated is disbursed at retirement or
VRS. It can be transferred while changing jobs.
• You or your family get pension after the age of 58.
3. Employee Provident Fund (PF) Overview
4. • The Public Provident Fund (PPF)is an investment
scheme for any individual (general public). This is a
voluntary can be opened from Post Office or
• The minimum annual investment is Rs 500 &
maximum investment is Rs 70,000.
• The amount accumulated can be withdrawn after 15
years. You may also extend the maturity by 5 years &
also make fresh deposits during this period.
• There is no pension in this scheme.
PF & PPF are different
5. Employee Provident Fund (PF) Advances
6. Employee Provident Fund (PF) Insurance
• Employees are also insured under the Employees
Deposit Linked Insurance Scheme
• The Employer pays for the insurance charges. The
employee does not have to pay for the insurance.
• The insurance amount is payable to the nominee or
family members in case of death of the employee while
• The insurance amount is subject to a ceiling of Rs
60,000. Accident death benefit ceiling is Rs 1 Lakh.
7. Employee Provident Fund (PF) Pension
• You are eligible for lifelong pension after the age of 58.
You need not pay for this scheme. The employer's
contribution is used to pay the pension.
• You need to complete 10 years of service. In case of job
change, the PF account has to be transferred & not
• The legal heir/nominee is eligible for lifelong pension
in case of death of the member.
• The maximum pension is Rs. 3250 per month.
8. PF Forms for Employees
• Form 19- To claim final settlement at retirement
• Form 20- To claim settlement by legal heir/nominee in
case of death of employee
• Form 10 C- To claim withdrawal advance
• Form 31- To claim temporary withdrawal/advance
• Form 31- To transfer account at time of changing job