EPF – If you do a private job then this news is for you. Because this news is related to the PF deducted from your salary. Some part of your salary is deducted as PF. In such a situation, a question arises that does the government deduct this money or the company? The second question is that will it benefit you or harm you?
Keeping in mind the future of the employees working in the private sector, the Government of India brought the Employees’ Provident Fund Organization (EPFO) into existence with the Act of Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. Before this Act, the Employees’ Provident Fund Ordinance was passed in 1951. This government organization takes care of the PF and pension related matters of the employees working in private companies.
Who deducts PF?
According to the rules, companies with 20 or more employees must register with the Employees’ Provident Fund Organization (EPFO) and deduct PF contribution from the salary of their employees. That is, if you are working in a private company, your PF will be deducted and this PF is deducted by the company. The company deducts your PF and deposits it in your PF account.
It is the responsibility of the company to deduct the PF of its employee and deposit it in the PF account on time. The company also contributes a part of it.
Is it your benefit or loss when PF is deducted?
This question arises in the minds of many people that is there any benefit or harm in PF deduction? So the answer is that it is beneficial. Because the money deducted from PF is in a way saving your money. The government also pays interest on it. And in case of emergency, you can also withdraw money. Along with this, if PF is deducted continuously for 10 years, then you also become eligible to get pension.