What is the benefit of provident fund?

 

The employees covered under the various schemes of the Act are entitled for the following benefits

1. Employees can take advances or make withdrawals*.
2. PF amount of a deceased member is payable to the nominees or legal heirs.
3. The employer not only contributes towards the PF but also makes the necessary contributions towards the employee’s pension which can be used by the employee post-retirement
4. Under the EDLI Scheme employees are properly insured in order to avail the lump sum benefit at the time of death while in service.
5. EEE (Exempt, Exempt, Exempt) tax benefit under the Income Tax Act enables tax-free returns for the employees.
6. Employees receive special benefits in the form of added income to their savings in the form of interest.
7. PF account can be transferrable if any member changes employment from one establishment to another where such Provident Fund scheme is applicable.

Read more about the benefits of Provident Fund