Tag Archives: EPF

Facilities and Real Estate News

  • East Delhi Municipal corporation wants housing societies to pay property tax on all common areas too: Read More
  • Study says India will add 7 million jobs in Fiscal 17-18: Read More
  • Counter view: – Misleading story of job creation: Read More
  • GIC, Tishman to sell WaveRock in Hyderabad for Rs 2000 Cr: Read More
  • C&W selects Tango as its global technology partner: Read More
  • EPFO may dip into its stock market profits to keep provident fund interest rate 8.65%: Read More
  • What is GOI’s UMANG App – All you need to know: Read More
  • Over 4000 societies in Mumbai receive notices from BMC for flouting fire safety norms: Read More
  • Environmental governance – India’s changing scenario: Read More
  • MMRDA plans to recycle metro waste into construction material: Read More
  • Pension authority seeks full tax exemption for NPS withdrawal: Read More
  • Karnataka minimum wages revised: Read More

 

Aggregated from various publishers. Rights with respective owners.

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Demystifying Social Benefits. Part 1

In an era where employers consider social benefits like PF, ESIC, Leave Wages, Bonus, Gratuity etc as a dead investments towards employees and employees who are unaware of the benefits they can claim through such social benefits, its time to bridge the gap between mandatory legal compliances & self motivated compliances.

Benefits of PF:

Every month an employee contributes 12% of his gross income (Basic + DA) towards his PF account and similarly an employer contributes 8.33% towards the Pension Account and 3.67% towards the PF Account, 0.5% towards the Deposit Linked Insurance Fund (DLIF) of the employee. So from the employee point of view in addition to the interest rate (pre decided by the Central Government), he gets double of the amount saved by him.

The core purpose of the employee pension scheme is to provide superannuation pension, retiring pension or permanent total disablement pension to the employees or widow or widower’s pension, children pension of orphan pension payable to the beneficiaries of such employees.

The purpose of employee DLIF is to provide life insurance benefits to the employees such as on the death of the employee while in service a lump sum insurance amount is payable to his nominee or family member. Also the insurance amount is equal to the average balance in the account of the deceased employee in the Provident Fund during a period of 12 months immediately preceding his death subject to a ceiling of Rs 130000/-..

Most importantly PF helps as an helping arm to the employee in critical situations such as medical treatment, repayment of housing loans, repair of house, purchase of plots, natural disasters  etc.

Stay tuned to demystify more such benefits in the upcoming weeks.

Rutu Shah
(rutu@kaarya.co.in)

(The Author leads HR Operations and Employee Engagement at Kaarya Facilities)