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Who are the staff?
PF stands for Provident Fund. It is a retirement savings scheme that is mandatory for employees in India. A portion of the employee's salary is contributed to the fund, along with a matching contribution from the employer. The accumulated amount can be withdrawn upon retirement or in certain other situations.
PF is a government-mandated scheme that is applicable to all employees in India. It is different from other retirement savings schemes such as pensions or 401(k) plans, which may be optional and offered by specific employers or organizations.
The employee's contribution to PF is 12% of their basic salary. The employer also contributes an equal amount. However, employees have the option to contribute more than the mandated 12% if they wish to do so.
Yes, you can withdraw your PF before retirement in certain situations such as illness, education, or buying a house. However, there are specific rules and conditions for each situation, and early withdrawals may also have tax implications.
If you change jobs, your PF account remains active, and your contributions continue to accumulate. You can also transfer your PF balance from your previous employer to your new employer's PF account. Alternatively, you can choose to withdraw your PF balance, but this may have tax implications and impact your retirement savings.