The most significant tool in the arsenal of retirement planning is the Employee Provident Fund. When kept for long-term, it can not single-handedly meet retirement goals but also surpass them because:
It has 100% tax-pardon union
Interest works a propos the order of complex layer
Both these factors ensure that approximately the epoch of primeval age PF provides a substantial nest egg. Illustrated knocked out are every portion of the advantages an EPF affords a person and their loved ones in time of compulsion, emergency or after retirement.
What are the merits of Provident Fund?
Do you know about Ciri?
Insurance
The Employee Deposit Linked Insurance aspire states that a company has to contribute 0.5 % of the monthly basic pay as a premium of insurance lid. EDLI is applicable behind the organisation doesn’t come happening behind the maintenance for its employees a work insurance scheme. The contribution of the employer is capped at Rs. 6,500. Furthermore, the insurance coverage amount is the difficult one of the as well as two:
Twenty period the average wages of the add-on one year (going on to Rs 6,500 per month) which comes out to be Rs 1,30,000.