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PF (Provident Fund): What is it?

How Does Salary-Based PF Calculation Work?

For salaried Professionals PF ESIC Consultant in Ahmedabad by Connect 2 Payroll Services in India the Provident Fund (PF) is a retirement benefits program intended to give them adequate money upon retirement. It is a joint employer and employee contribution that is taken out of the worker's paycheck each month and put into their PF account. It gradually increases to a sizeable sum that the worker can use at retirement. Any corporate organization with more than 20 workers is required to establish an Employee Provident Fund account. Continue reading to learn more about provident funds and how they are determined from each employee's monthly income.

What Does Salary EPF Mean?

The Employees Provident Fund and Miscellaneous Act of 1952 governs the Employees Provident Fund (EPF), a retirement benefit scheme. Employees make a monthly payment to the scheme, and employers are required to match that amount. The Employee Provident Fund Organization, or EPFO, is in charge of managing the program. At retirement and during their employment, the employee receives a lump sum PF payout that includes interest and payments from both parties. Because the PF amount and interest earned are tax-free when withdrawn, it is a popular plan among salaried workers.

Best PF ESIC Consultant in Ahmedabad by Connect 2 Payroll Services in India. All corporate businesses with more than twenty workers are included by the program. With some limitations and exclusions, it also covers certain businesses with less than twenty workers. For example, if a company employs less than twenty people and operates in the jute, coir, beedi, brick, or guar gum industries, its contribution is 10% lower. Every year, the EPFO examines the EPF interest rates. Understanding that the organization determines the interest rate on each month's ending balance and then for the whole year after the interest rate announcement is essential for everyone who has to learn how to compute the PF amount.

In the EPFO Portal, what is UAN?

In India, each member of the Employees' Provident Fund Organization (EPFO) is given a unique identifying number known as their UAN, or Universal Account Number. It acts as a catch-all for several Member Identification Numbers (Member IDs) that are assigned to a person by several employers. The UAN simplifies EPF administration because it stays consistent over the course of an employee's tenure. Through the EPFO site, employees can easily control withdrawals, check balances, and access their EPF accounts thanks to this unified system, which also improves accessibility and transparency.