What is PF, EPF and EPFO? And what they mean is – in this article today we are going to give you information on a very interesting topic. Today in this article we will tell you what is PF? What is EPF? What is EPFO? If you want to get information related to PF, EPF and EPFO then read our article till the last.
Whenever you go to work in a company, there is a fixed salary. If you are working in a local company or factory, then there is nothing to do with PF. If you are employing someone in a reputed company, then PF is deducted every month from your salary. PF is a money that every government or private employee has to deposit in his company.
Whenever a person goes to work in a factory for the first time in a company and is asked for money in the name of PF. Then a lot of confusions arise in the minds of the people. People do not know what is PF? And why is PF important for us? We have brought this article today to solve all these problems and to give you the right information about PF. If you have any confusion related to PF or EPF or EPFO, then after reading this article today all your confusions will go away.
What is PF ?
Now let us not waste much of your time and tell you what is PF? If you do not know about PF, then for your information, let me tell you that the full form of PF is Provident Fund. PF is called provident fund in Hindi.
We can understand PF as a bank account. You have to deposit 12% of your salary in this bank account every month. When you complete your age and you retire from the company, you are refunded all the money you deposited. The only difference in this is that the PF account is not opened in any bank, but this account is opened in the company in which you work.
PF is a type of fund. When we work in a company we are given a fixed salary. While giving salary, 12% of our salary is deducted. This 12% is deposited in our provident fund. This wealth comes in handy when we get old and we have no source of income.
It is mandatory to give PF to employees in all the private limited companies. Apart from the private sector, all government employees are also required to submit their PF. The biggest feature of PF is that PF does not have to be deposited from your pocket. This automatic is deducted from your salary.
Let us explain it to you by an example. Suppose you are 20 years old and you are working in a company. In the company, you are given a salary of ₹ 20000 per month. When a salary will be sent to your account by the company, then automatic 2400 rupees will be deducted from your account. This PF is taken from you every month as long as you work in that company.
Suppose you worked in a company for 20 years. After 20 years, you gave the design to the company. 576000 rupees will be given to you on behalf of the company, on giving you the design or on retirement. This is the same money that you deposited in your PF account every month.
By the way, usually you do not get the entire money deposited in PF. Some percentage of the money you deposit in PF goes to your life insurance and some percentage is invested in your other plans. It all depends on the company you are working in. If the company wants, then you can return the full amount of PF.
Along with this, if you submit your PF, then it means that you have proof that you are a registered employee of the company. If an accident happens while working with you in the future, then you can claim to get proper help from the company.
What is EPF ?
Both EPF and PF are same. The full name of EPF is Employee Provident Fund. We call this the Employees Provident Fund in Hindi. PF was earlier called EPF but has now been renamed as PF.
What is EPFO ?
The full name of EPFO is Employment Provident Fund Organization. This is a type of organization we know as the Employees Provident Fund Organization. It is a government organization, this organization was established on 15 November 1951.
The main function of the EPFO organization is to protect the interest of the employees. All the guidelines related to PF are issued by EPFO itself. From time to time, the EPFO runs new schemes for the benefit of the employees. If there is any tampering in your PF by a company, then you can complain to EPFO.
I hope that all the doubts associated with PF and EPF and EPFO will be cleared. Today in this article we told you what is PF? What is EPF? What is EPFO? Hope you like this information. If you like this information, share it with your friends. Thank you very much for reading the article till the last.