Before talking about the benefits of the Employees provident Fund Scheme 1952, let’s find out the basics about the scheme. Employees Provident Fund (EPF) Scheme 1952 is a special scheme that the government guarantees to every employee working in any private or public sector organization. Actually, it is a retirement saving scheme for the Employees Provident Fund Organization (EPFO). It is a government organization that takes care of the Employees Provident Fund Act and Miscellaneous Provisions Act, of 1952.
The scheme is applied to both employees and employers. Under this EPF scheme, both employees and employers have to pay a certain amount, which is decided with the help of a fixed percentage, to the organization. Here, the contribution of both entities is equal and it is deposited in the provident fund account of the employee. The account accumulates the funds and the employees get the lump sum amount. This amount includes the contribution of the employee and employer along with interest on the amount.
The Objective Of Employees Provident Fund Scheme 1952
EPF Scheme is applied to help the employees. It certainly helps government, public, or private sector employees financially at a time when they need it the most. The scheme provides them with a lump sum amount on their retirement from their job by managing their provident funds of them. The scheme also helps in providing social security to the members of the scheme.
Benefits Of Employees Provident Fund Scheme 1952:
The scheme assists in saving money in the long run.
The deductions are made on a monthly basis from the salary of the employee.
It helps in saving a big sum of money over a long period.
The fund helps the employee financially when they encounter a financial emergency.
There is no obligation to make a single or lump-sum investment.
The Employees Provident Fund Scheme 1952 is a very effective way of helping employees when they find themselves in any kind of financial emergency. They can even take a loan from their EPF account. They can repay the loan or get it adjusted from the final amount that they are entitled to get at the time of their retirement. To get the maximum advantages of the employee's provident fund scheme 1952, you can speak openly to the labour lawyers.
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