Hi! I am ammu. What is the meaning of employer and employee contribution? Difference between employer and employee contribution?Is employer contribution is mandatory?
From India, Delhi
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From India, Delhi
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Hi Ammu,
The Employees' Provident Fund Organisation in India is one of the largest provident fund institutions in the world in terms of members and volume of financial transactions that it carries out. It has been set up for employee benefits as a saving fund. Both employees and employers contribute to the same fund at a rate of 12% of the Basic salary from both sides.
Out of the employer's 12% contribution, 8.33% goes to the pension fund, while the remaining 3.67% goes to the Provident fund. However, the total 12% contribution from employees goes to the same fund. An employee may claim this amount after separating from the company or choose to retain it for their next assignment.
Regards,
Amit Seth
From India, Ahmadabad
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508The Employees' Provident Fund Organisation in India is one of the largest provident fund institutions in the world in terms of members and volume of financial transactions that it carries out. It has been set up for employee benefits as a saving fund. Both employees and employers contribute to the same fund at a rate of 12% of the Basic salary from both sides.
Out of the employer's 12% contribution, 8.33% goes to the pension fund, while the remaining 3.67% goes to the Provident fund. However, the total 12% contribution from employees goes to the same fund. An employee may claim this amount after separating from the company or choose to retain it for their next assignment.
Regards,
Amit Seth
From India, Ahmadabad
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Provident Fund - Excluded Employee - Definition.pdf
What is Employee Provident Fund.docx