What are the benefits of a provident fund for employees and employers?
A provident fund (PF) is a long-term investment fund to which both employees and employers contribute. The purpose of the PF is to provide employees with a financial cushion in retirement and incentivize them to stay with the company for the long term. In this blog post, we'll explore the benefits of having a PF for both employees and employers. What is a provident fund? A Provident Fund (PF) is a retirement saving scheme that helps employees save money for their retirement years. Employees contribute a fixed percentage of their salary to their PF account, while their employers match this contribution. The interest earned on the PF account is tax-free, which makes it an attractive savings option for employees. In addition, the withdrawal amount is also tax-free. Employees can withdraw…