The Employees' Provident Fund is run by an organization by precisely the same name by the Government of India. It's a social security organization and provides pension rewards for the enormous number of organized workforce within the nation. Let us see the rewards of it.

Within this scheme, 12 % from the employee's salary is deducted by the organization and an equal amount is contributed by the employer also. It can be accomplished in establishments which have got an employee strength of 20 or above. Within this case, all of these organizations will have to fall below the jurisdiction of the scheme.

The existing price of interest is 9.five percent around the deposits made by the employee. The employee may possibly get a pension on his retirement or there is certainly provision for the payment of a fixed amount to his members of the family on his untimely death.

Easy distribution of pension is one of the benefits of this scheme. Under this scheme, an employee has to make an account with any of your registered banks for payment of pension. Following the retirement on the employee, pension is disbursed by the organization towards the employee concerned. All banks with tie ups generally offer a zero balance account for the pension holders. The pensioners commonly get their pension before the tenth day of every month.

The issue behind the scheme is its reach. It's difficult to locate all organizations with an employee strength of 20 or above. The companies have to pay a subscription towards the organization and this subscription price also prevents the organizations to join the scheme. Even so the government is attempting to make the scheme a a lot more desirable and straightforward. normally the scheme is actually a great tool for social safety.