PF Registration in India
It is a form of social safety in which worker must contribute a portion of their salaries and employers must contribute on behalf of their workers. For those who have basic salary up to fifteen thousand is mandatory EPF is mandatory and for those who have basic salary exceeding fifteen thousand are voluntary contribute to EPF. It is important tool of retirement planning. The compounded tax free interest and maturity ensure a good growth of your money.
Types of provident fund:
a. Statutory Provident Fund.
b. Recognized Provident Fund.
c. Unrecognized Provident Fund.
d. Public Provident Fund.
Advantages of Provident Fund:
a.It is a secure Saving Plan.
b.Employees and their families are eligible for income in case of death, disability, retirement.
c.Employee's contribution is eligible for sec. 80C deduction.
d.Employer's contribution is totally exempt.
a.The maximum contribution can be 8.33 percent per month of basic salary.
b.Twelve percent of basic salary should be contributed by employer.