If anyone tells me the salary breakup of 15000 without PF contribution, I just want to know if any organization doesn't provide PF facilities to their employees, then what will they do? If the employees want to work in another organization, will that employer consider them or not?
From India, Bhubaneswar
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From India, Bhubaneswar
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My company does not contribute to PF, and I don't have a PF account. What problems will I face in the future if I want to work in another organization? Will they consider hiring me as their employee or not?
From India, Bhubaneswar
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From India, Bhubaneswar
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Dear Dipali, your company is not registered for PF benefits, and hence PF benefits are not being provided, as I understand. You want to know if, since you are not receiving PF benefits, other employers will offer you a job in the future. The response is that even though you are not currently under PF, a new employer will not disqualify you for that. If you are selected, the new employer will provide all benefits given to other employees, including PF. You will be covered under PF from the date of joining the new employer who is already registered for PF benefits.
Benefits of PF
PF benefits are very useful for post-retirement life as you are eligible for PF pension after retirement. The second benefit is compulsory saving. If your Basic & DA amount is Rs 15,000/-, then Rs 1,800 gets deducted from your salary for PF, and an equal amount is contributed by the employer. You earn interest on the amount in your account at the rate determined by the government. Thus, there is compounding of the money as your contribution and the employer's contribution build up the corpus. So, when you retire, you receive a substantial sum of money which is income tax-friendly.
Additionally, if an employee meets with an accident, the family becomes eligible for widow and/or children's pension. One can obtain a loan from PF for children's higher education or the serious illness of dependents.
Alternative Savings Options
Therefore, saving in PF helps employees in the long run, and employees should refrain from withdrawing PF until retirement. If your organization is not covered under PF, the best thing you can do is to ensure your own savings so that there is something available for a rainy day. Consider Public Provident Fund or National Pension Scheme and obtain details from a bank of your choice.
I hope I have understood your question correctly and responded accordingly; otherwise, you can consult others.
From India, Mumbai
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17Benefits of PF
PF benefits are very useful for post-retirement life as you are eligible for PF pension after retirement. The second benefit is compulsory saving. If your Basic & DA amount is Rs 15,000/-, then Rs 1,800 gets deducted from your salary for PF, and an equal amount is contributed by the employer. You earn interest on the amount in your account at the rate determined by the government. Thus, there is compounding of the money as your contribution and the employer's contribution build up the corpus. So, when you retire, you receive a substantial sum of money which is income tax-friendly.
Additionally, if an employee meets with an accident, the family becomes eligible for widow and/or children's pension. One can obtain a loan from PF for children's higher education or the serious illness of dependents.
Alternative Savings Options
Therefore, saving in PF helps employees in the long run, and employees should refrain from withdrawing PF until retirement. If your organization is not covered under PF, the best thing you can do is to ensure your own savings so that there is something available for a rainy day. Consider Public Provident Fund or National Pension Scheme and obtain details from a bank of your choice.
I hope I have understood your question correctly and responded accordingly; otherwise, you can consult others.
From India, Mumbai
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Salary breakup format.xls
PF Contribution on Leave Encashment - Clarification by EPFO.pdf