Whenever you retire from your job, your income stops, however your costs do not. In fact, the expense of residing and costs increases after your your retirement. So, if you wish to make sure your day-to-day costs are looked after and therefore your lifestyle is maintained as before, a good your retirement corpus is essential. This is how worker Provident Fund will come to your help.
1. What is the Worker Provident Fund?
The Employee Provident Fund (EPF) is a scheme that can help individuals conserve a enough corpus for retirement. The program had been introduced using the workers’ Provident Funds Act in 1952 and it is now managed by the workers’ Provident Fund organization (EPFO).
In this scheme, a worker needs to contribute 12% of the fundamental income towards the investment each month. The company fits this quantity with a contribution that is equal. Whenever you retire, you obtain just how much (personal along with the manager’s share) as being a swelling amount along side interest. The EPF is undoubtedly a low-risk investment as the us government of India manages it and assures a fixed price of return.Continue reading