The job worker wants to know that What is PF and EPF, if we talk about the full form of PF, then it is (Employee Provident Fund), if you do a government job or do a private job, then you are given the facility of PF.
Today I am going to give you the information of PF, so that you will get to know about all the information about PF, if you have recently started a job then you should know about PF.
PF is very beneficial for the employee, PF is not only a good way to save, you also get exemption from many types of taxes and you also get more interest from the bank in it.
You can withdraw PF money when you retire or leave your job, but you can also withdraw PF money in advance, there are some terms and conditions for this, you can withdraw money from PF by following it.
What is PF and EPF
Those who do government or private jobs, they will know about PF and EPF, because PF has Full Form Provident Fund and EPF has Full Form Employee Provident Fund, some people call it PF and some people also call it EPF. means the same thing.
PF is a government scheme called Employees’ Provident Fund Organization, it was established in 1952 and is headed by the Union Labor Minister of India.
If 20 or more employees work in a company, then it is necessary to have an account in PF, some part of your salary is deducted and deposited in your PF account.
What is the Percentage Deposited in PF?
Many people do not know that what percentage of their salary is going to PF and how much money is deposited from the company side.
Let us tell you that 12 percent of your salary is deducted in PF and 12 percent amount is deposited by your company in your PF, in which some percent is also put in your pension, which you can withdraw after retirement or leaving the job.
If we talk together, then 24 percent of your money is deposited in your PF, you will be happy to know that you do not get any tax on this money, even when you withdraw your money, you do not have to pay tax.
Interest is also given by the government on PF, which is more than your bank or any scheme, if you talk about today’s date, then you get 8.50 percent interest, you will get this interest for 2020-2021.
What are the Benefits of PF
If you do a job then there are many benefits of PF, it is a good way of saving and you get many benefits :-
Get free Insurance
Under EDLI i.e. Employee Deposit Linked Insurance, you get insurance up to Rs 6 lakh as soon as you open a PF account.
Tax Free Facility
The amount deposited in PF is completely tax free, there is no tax of any kind, and if you withdraw money, then it is not taxed.
Easy Money Withdrawal
You can withdraw money from your PF account whenever you want, you just have to take care of some terms and conditions, and in certain circumstances you can withdraw up to 90 percent of the money from PF.
Great way to Save Money
There is a very good way of saving money in PF, in this you get very good interest which is better than the bank, in this you get 8.50 percent interest and you do not have to pay any tax.
After creating a PF account, you have to link your PF number with UAN i.e. Universal Account Number, you can enter your KYC details on PF and you can also withdraw your money and link your account to any other PF account. You can also do it if you have to change your job.
Employee’s Pension Scheme
Those who work in the company, 12 percent is put by the company in their PF, in which some percent is also put in the pension scheme, when you can withdraw this money as a pension after retirement if your less than 10 years. If you have worked in the company then you can withdraw your pension money completely.
How to Check PF Balance
Friends, you must have come to know a lot about PF, then some of your questions must have been answered and how can you check your PF balance :-
- You can check your balance through SMS.
- SMS EPFOHO to 7738299899
- You can check balance by missed call.
- Balance check can be done through mobile app.
- You can check balance by downloading UAN number and EPF passbook.
- You can check the balance of your PF by the above mentioned method, and you can withdraw money by taking care of some terms and conditions.
How to Withdraw Pension from PF?
There are a few ways to withdraw your PF pension. You can choose to make a partial withdrawal for various reasons, such as emergency medical expenses, house construction, and education. This all ways will help you to transfer the funds to your bank account automatically.
Steps to Withdraw Pension from PF are Listed Below:
There are 2 ways to withdraw your PF from EPFO:
- Withdraw using Aadhar Card
- Withdraw without Aadhar Card
Withdraw Using Aadhar Card
- First, you have to activate Your UAN (Universal Account Number)
- After that, enter the bank account information and aadhar card number into UAN’s portal
- Then, fill a form 11 to your employer
- And, lastly complete and submit a composite claim form in the EPFO office
Withdraw Without Aadhar Card
- First, submit two copies of the form 15G/15H
- Then, update your PAN card if the time of service is shorter than 5 years
- After that, update your UAN and then submit your PF account number
- And lastly, submit a composite claim form to the EPFO office.
FAQ Related to PF
The essential requirement for calculating PF is a monthly salary of Rs 15,000 or more. If the employee is paid more than Rs 15,000 in any month, they have to contribute additional. For example, if the employee earns more than Rs 15k in one month, they must contribute 8.33 % of the basic salary.
Basic salary is a monthly payment that salaried employees receive. The amount is divided by the number of pay periods in a year. The basic salary does not include overtime pay, bonuses, or other additional compensation. However, the salary package of an employee is known as gross pay. The cost to the company is the total salary amount minus any allowances. The basic salary is the basis of the salary structure, which makes 40-45% from the overall CTC. Other salary components such as Gratuity, Provident Fund, and ESIC are calculated based on the base salary.
I hope that you must have come to know about what is PF and if you still have any question in your mind then you can comment us and I will definitely answer you and if you like this article then you can share with your friends.