If you work in the private sector, your PF is deducted every month. PF is divided into two parts — one part goes to your provident fund, and the other part goes to your pension. Both these parts come from the employee’s and employer’s contributions.
As per the rules, 12% of the employee’s basic salary is deducted as PF. The company also contributes the same amount to the employee’s PF account. However, the company’s share is divided into two parts. The first part, about 3.67%, goes to the EPF account. The second part goes to the EPS, i.e. Employee Pension Scheme. The employee gets the benefit of both these schemes. Let’s understand what benefits each one provides.