Provident Fund
Provident Fund
 

Provident Fund

To ensure social security to all working force of the country provision of provident fund has been made compulsory for all employers as well as employees in India. The Employees Provident Fund Organization monitors whole of the activities of provident fund in India, which is a statutory body of Government in India. This organization functions under Ministry of Labor and Employment. This organization makes it compulsory for employers as well as employees to contribute towards employee provident fund. This organization is designated for being the largest social security organization in India. Similarly, public provident fund also ensures money deposited in your own account.

As per the law passed by the Indian government both the employees and employers are required to contribute towards the employees provident fund in which maximum limit for the salary has been set as Rs. 6500. This is the maximum limit on which 12% of the amount is to be deposited in the PF account. Amount of employees provident fund is deducted as per the employees provident fund scheme which mandates deduction of 12% of their wages. For provident fund employees need to have a PF account. For employee provident fund scheme amount is deposited by the employer at the rate of 12% on the wage of Rs. 6500. However, employee can contribute more than that of its limit


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