PF is the abbreviation of Provident Fund which is paid by the employees of particular company or organization. Every organization from private to government collects provident funds. The PF amount is decided on the basis of the salary you get with the company’s standard level. The PF amount is received once the individual is retired. You can also receive PF when the person leaves the particular company, the PF amount is calculated on the basis of his working days. Pf helps you in the time of retirement; make sure you collect your PF while you leave the organization which is small amount of your monthly salary.
If you are working in Government Company then you are the one who is most benefited with PF. This is because after you retire you will receive large amounts of PF as your salary is more than private companies. We are also given the option of taking loan from our provident funds. The tax free interest and maturity ensures us with handsome amount of money leading to savings in the future after retirement.
Though PF benefits us in our future retirement plans but there are several other factors which benefit us in future with PF:
- Pension Benefits: The pension on retirement is based with the number of years of service given in the company and the average salary before retirement. Pension helps you to survive our future without any income coming through PF and enjoy the later years peacefully.
- Insurance benefits: Most of us are not aware of the fact that small life insurance is covered under PF which helps when the employer doesn’t provide the company with group health insurance policy. Avail this PF to benefit your family in future.
- Require funds in special occasions or have emergency, EPF gives the option to withdraw from the company with a limit and under special conditions.
- In case you need funds for marriage or education you can withdraw 50% of PF from your contribution. This benefit gives you to withdraw the PF amount for 3 times in a year.
- PF also benefits you with buying a new house, repairing and construction and also for repayment of the house loan. For house loan and repayment you can avail 36 months of wages from PF balance in you have completed 10years in the company. And for repairing and construction work you can avail 12 month of PF amount.
- PF gives major benefits for surgical operation in hospital or any major disease. You can withdraw 6 times of you salary from Pf contribution till date.
- Other benefits like buying equipments for physically handicapped person can also help you with the PF amount.
You are provided with the facility to nominate your house members who will receive the funds in your absence and thus you family must be aware of it. Provident Fund tool though gives us lot of benefits for our future; the important aspect to remember is that it is retirement tool and only should be used when PF is the last option to consider.