Provident Fund ( PF )

431 views • 1 min read
glossary

It is an investment fund which is contributed by the employees, employers and state. The lump sum is given to each employee on retirement or when the person is leaving the organisation. It is also known as the pension fund. It was started by the government in many developing countries to provide long term financial support to retirees or the disabled or dead’s family. 12 % of the salary amount is paid by the employee and the other 12% by the employer. Employees whose basic salary is less than Rs.15,000 have to become a member of EPF while others have the option to be a part of it or not be a part of it.

Also Read: Why EPF is Still Believed to be the Father of all Savings in India

Make your Payroll fun and easy!

Learn how HROne Payroll software can help you automate Payroll & stay 100% compliant!

Sukriti Saini

Sukriti Saini works as a content marketing strategist at HROne. She has done Bachelors in Journalism from Delhi University and carries several years of experience in content development. HR trends, Productivity, Performance and topics related to Employee Engagement garner most of her writing interest here. During leisure, she loves to write and talk about fashion, food & life.

Follow me on Linkedin to stay updated on the latest HR trends

View all author posts →