If you do a private job, then this news is important for you. This is about the PF that is deducted from your salary. A part of your monthly salary goes to the PF account. In this case, many people have a question—does the government deduct this money or the company? Another common question is—does it give you any benefit or is it a loss?
To protect the future of private sector workers, the Government of India created the Employees’ Provident Fund Organization (EPFO). It was made under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. Before this Act, there was the Employees’ Provident Fund Ordinance of 1951. EPFO is a government body that handles PF and pension matters for private company employees.
Who Deducts PF from Your Salary?
As per rules, if a company has 20 or more employees, it must register with the Employees’ Provident Fund Organization (EPFO). The company has to deduct PF from the salary of its employees. So, if you are working in a private company, your PF is deducted by your company.
The company is responsible for cutting the PF amount from your salary and depositing it into your PF account. The company also contributes an equal amount to your PF.
Do You Get Any Benefit from PF Deduction?
Many people think whether PF deduction is a benefit or a loss. The answer is—it is a benefit.
The PF money is your savings. The government also gives interest on this amount. You can even withdraw this money during an emergency.
If PF is deposited regularly for 10 years, then you also become eligible for a pension later on.