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Employees Provident Fund
EPF is for employees of private sector companies with more than 20 employees. In this, a certain portion of the employee's salary is deposited and the company also contributes the same. However, only 3.67% of the company's share goes to EPF, while the remaining 8.33% is deposited in the Employees' Pension Scheme. After retirement, the PF amount is given to the employees in lump sum, while the EPF amount is given in the form of pension. The interest rate on EPF for the financial year 2023-24 has been fixed at 8.25%, which is slightly higher than many other savings schemes.
public provident fund
GPF is only for government employees. In which accounts are opened for temporary and permanent employees working continuously for one year in government institutions. Employees have to contribute at least 6% of their salary to GPF, provided they are not suspended. They get a lump sum amount after retirement. But with the advent of the new pension scheme UPS, the main disadvantage is that there is no provision like GPAF to pay the contribution.
UPS also provides assured family pension. On the death of an employee, his family will be given 60 percent pension immediately. The benefit of dearness allowance will be available on assured pension, assured minimum pension and assured family pension. This will be according to the All India Consumer Price Index for industrial workers. In this pension scheme, retirement payment will also be made along with gratuity. The employee will get good payment on retirement, for this, 1/10th of the salary and dearness allowance will be added to the gratuity after completing every 6 months of service. This payment will not affect the fixed pension of the employee.
