Article

Employee Provident Fund (EPF)
January 19 , 2013

One of the virtues the Indian Government tries to propagate is that of compulsory and automatic savings. Since many people end up spending every rupee that hits their Bank Account, the Government ensures part of the salary goes towards long term savings directly from the employer, even before hitting the employee's Bank Account. This goes into a fund called the Employee Provident Fund (PF or EPF). Your employer takes care of the PF - he deducts your contribution of 12.24% of your basic salary automatically and puts a matching amount from his side. If you switch jobs, the PF can be transferred to the new employer. The PF is giving a tax-free fixed return of 8.5% per year this year. 

In case your monthly salary exceeds Rs 6,500, you can opt out of the PF. However, we would strongly advise you against this option even if your employer allows it. The PF is ideally meant to be drawn from only at retirement. But in case you are out of a job for over six months, the PF may be drawn out and the account closed.

Fintotal Knowledge the best place to learn more on personal finance.

The language is simplified and written specially for non finance background individuals.


Explore more in a easy manner.

Table of Contents

Table of Contents

  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed

Get the all financial products under one roof only at

you will NEVER GO WRONG with us!

Unbiased . Best Deals . Appropriate Products . No Mis-selling