Povident Fund (PF) is a kind of benefit for the employees. Employee will be contributing 12% of his monthly basic salary to the PF account and the employer will also contribute 12% to the same account. It is a kind of saving to you. You can avil loan from the PF account also. At end you can close the account and get the amount with interest.
Payroll is calculating of salary/ wages to the employees. As a HR you will calculate the leave availed and intimate the Loss of Pay (LOP) to the concerned person.
PF and Gratuity are two schemes designed to benefit the employees of the private sector.
In PF a small portion of the employees salary is deducted and deposited with the government PF office and at the time of retirement it is paid as a lump sum to help the employee lead his life peacefully in spite of retirement and loss of monthly income.
Gratuity is a scheme to motivate people to serve for longer durations with the same employer. Anybody who has served an organization for more than 5 years is eligible for Gratuity. A portion of your last drawn salary would be multiplied with the number of years of service and paid out to you when you leave an organization after years of service.
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