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.
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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.