Employer contributes
The employer contributes some proportion to the EPF fund along with the employee. The
employer also adds his contribution that is inclusive of the employee pension scheme
(EPS).
Financial support
Provident fund acts as financial support at the time of retirement, illness, demise,
disability or any similar risk occurred to the employee.
Retirement Savings
Taking into consideration that the employee provident fund registration grants
extraordinary benefits like it is a mode for retirement savings. After a particular time
period, the retirement benefits can be used through this scheme.
Pension
Under this scheme, the form of deduction is carried through the salary account. Under
the provision of EPF, 12% is deducted and then it is credited to this fund. More than
8.33% from this proportion is credited directly to the requirements of pension. Due to
this advantage, an employee can think about such savings as a necessity after their
retirement.
Pension
Carry forward
PF account of an employee need not to be closed in case the employee switches his job as
the same can be carried forwarded.