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Showing posts with the label Public Provident Fund

What do you mean by provident fund or meaning of provident fund

      The word ‘Provident’ means to provide for the future, hence this fund is to provide for the future. This fund is credited by an amount deducted from the salary of the employee every month at a certain rate and the employer also makes his own contribution of this fund. These contributions are invested to earn interest, which is also credited to the employee’s provident fund account. When an employee retires from his service, he receives this amount in lump-sum along with interest on it and is a great help to him at that time. If unfortunately, the employee dies during the tenure of his service, the amount of this fund is received by his wife and children on legal heirs, which is of great help to them.        Provident funds are of four kinds: 1.    Statutory Provident Fund; 2.    Recognised Provident Fund; 3.    Unrecognised Provident Fund; 4.    Public Provident Fund.    ...