Scheme under the Provident Fund Organization |
Posted: October 14, 2018 |
Provident fund is name prescribing pension funds or the funds invested for one to benefit after leaving their work. This is the retirement age, in Indian country the fund is referred to as the employee provident fund. Which is a scheme established by the government for all salaried people in India. Any Company with more than 20 employees should register with scheme and invest in the retirement scheme. Actually so many employees are getting confused how to Check Epf India UAN Status using UAN Login in unifiedportal-mem.epfindia.gov.in EPF is under the larger body employee provident fund organization which receives all the money and saves it for each member. The EPFO gives interest to the funds collected at the end of the year plus other benefits like loans. The number doesn’t have to be 20 in number as the scheme considers all the workers. Before the scheme catered only for the government workers. However it was noted with much concern that private sector workers also deserve to have a decent retirement. EPF scheme works with a contribution of both the employee and the employer. A certain percentage of the salary is invested as it is a compulsory thing to do each month. This starts from the first month of employment and 12% of your salary will go to the provident account. This has become the world best investment plan and so many countries are following suit. However under the EPF act there are different scheme which are governed by the same laws as the EPF.
As we have learnt EPF has other schemes operating under the same act. The plans have the same goal for investing and helping in the retirement age. All the schemes are government led and comply with the EPF set rules and regulations. Below we can have a look at each scheme: Employee pension scheme This a scheme which has been in existence since the year 2014, it is a pension scheme where 12% of salary goes to the EPF account. This scheme only allows members who are registered with the EPF to join. The EPS gets a share of 8.3% from the employer and 1.16% from the government. This fund will be used after retirement. It okay to note that the funds EPS funds don’t gain any interest at the end of the year. Remember the EPF take 12% divides it as 8.3% goes to the EPS and the remaining 3.7% goes to the EPF. At the EPF this where interest is gain each year. Employee deposit linked insurance scheme EDLI is a popular scheme which was established in the year 1976. It focuses on the employer who give part of funds to the EPF for the employee. The scheme as it suggest it sole purpose is to give insurance cover for all employees. The employee has to be a member of the EPF in order to benefit from the EDLI scheme. From the monthly contribution of 12% EPF 8.3% goes to the EPS while 0.5% goes to the EDLI and acts as insurance policy. This has a lot of benefit to the member and his/her family members. All this scheme work under the EPF and non can work alone since the funds are distributed from the EPF.
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