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Full Form Of PF, What Is Full Form Of PF ?

The full form of PF is Provident Fund. Provident Fund is also known as Employee Provident Fund (EPF). Provident Fund or EPF is a scheme for providing monetary benefit to all salaried individuals after their retirement. The PF (Provident Fund) or EPF scheme was introduced under the Employee’s Provident Fund and Miscellaneous Act. All the rules and regulations are defined by the Employee Provident Fund Organization. The EPFO’s activities are managed by the Ministry of Labour and Employment. This scheme is regarded very beneficial for all salaried employees for developing a lump sum amount after their retirement.

In the process of PF, a specified amount is deducted from the monthly salary of an employee and is put into the EPF account. The amount collected in the Employee Provident Fund account is provided to the employees after they retire. The EPF or PF (Provident Fund) scheme was introduced in 1952 under the Employee’s Provident Fund and Miscellaneous Act. All the rules and regulations are defined by the Employee Provident Fund Organisation. The activities of the EPFO are managed by the Ministry of Labour and Employment. In this process, the employer will deduct an amount from the monthly remuneration of his employee. As an employee start working in a firm, both the employer and the employee contribute 12% of the basic remuneration into the EPF account. This salary also includes D.A (dearness allowance) provided by the company. You will receive a fixed level of interest on this amount based on the rules set by the EPFO. The total amount that you receive along with the interest is tax exempted.

12% of the salary goes to the EPF account along with 3.67% from your company. The remaining 8.33% of the 12% is sent to the Employee Pension Scheme. In case your salary is above Rs 6500, the company can only contribute 8.33% of that amount to the EPS. The remaining balance amount is credited to your EPF account. All individuals earning a salary of Rs 15,000 and above have to register under the EPF scheme. You can withdraw the entire amount from the account after you retire or leave the organisation. In case of your unfortunate demise, your nominee or legal heir can withdraw this EPF amount.

There are mainly three different types of PFs, which include the following:

    ·   The General Provident Fund is a type of PF which is maintained by governmental bodies, including local authorities, the Railways and other such bodies. Thus, these types of PFs are mainly defined by the government bodies.
·       The Recognized Provident Fund is the one which applies to all privately-owned organizations that contain more than 20 employees. Moreover, holding a rightful claim to the PF associated with your organization, you will be given a UAN or Universal Account Number. This enables you to transfer your PF funds from one employer to another whenever you move from one occupation to another.
·       The Public Provident Fund is defined by the voluntary nature of investment on the part of the employee. The PPF is also associated with a minimum deposit of INR 50 and a maximum amount of Rs. 1.5 lakhs. This PF also comes with a pre-determined maturity period of 15 years, only after which any form of withdrawal can be done from the account.

Specific Provident Funds include:

·       Employees' Provident Fund Organisation, India's retirement plan

·       Mandatory Provident Fund (Hong Kong), Hong Kong's retirement plan

·       Central Provident Fund (Singapore), Singapore's retirement plan

·       Employees Provident Fund (Malaysia), Malaysia's retirement plan

·       Employees Provident Fund Nepal, Nepal's retirement Plan

·       Central Provident Fund (South Africa), a retirement trust

·       Instituto del Fondo Nacional de la Vivienda para los Trabajadores, Mexico's public pension fund and largest mortgage lender

·       National Social Security Fund (Kenya)