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
From India, Delhi
Hi Ammu,
The Employees' Provident Fund Organisation, India, is one of the largest provident fund institutions in the world in terms of members and volume of financial transactions that it has been carrying on.
This is been set-up for the employee benefits as a saving fund..
The employee as well as employer contribute in the same fund.. the contribution rate is 12% of Basic from both the sides..
Here out of 12% of employer 8.33% goes to pension fund where as rest 3.67% goes to Provident fund.. but employees total 12% goes to the same fund..
Employee may get it back after separation from the company or may keep the same fund with next assignment as well..
Regards,
Amit Seth.
From India, Ahmadabad
496The Employees' Provident Fund Organisation, India, is one of the largest provident fund institutions in the world in terms of members and volume of financial transactions that it has been carrying on.
This is been set-up for the employee benefits as a saving fund..
The employee as well as employer contribute in the same fund.. the contribution rate is 12% of Basic from both the sides..
Here out of 12% of employer 8.33% goes to pension fund where as rest 3.67% goes to Provident fund.. but employees total 12% goes to the same fund..
Employee may get it back after separation from the company or may keep the same fund with next assignment as well..
Regards,
Amit Seth.
From India, Ahmadabad
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