Detailed calculation and the benefits of PF

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PF is a government-mandated savings scheme in India that benefits both employees and employers.

PF stands for Provident Fund and is a retirement savings scheme in India.
Employees contribute a portion of their salary to the PF account, and employers also contribute an equal amount.
The contribution is typically 12% of the employee's basic salary and dearness allowance.
The employee's contribution is deducted from their salary, and the employer's contribution is an additional expense for the company.
The PF amount accumulates over time and earns interest, providing financial security to employees after retirement.
The PF amount can also be withdrawn partially or fully for specific purposes like buying a house, education, or medical emergencies.
The interest earned on PF is tax-free, and the contributions are eligible for tax deductions under Section 80C of the Income Tax Act.
Employers need to maintain proper records and submit regular returns to the Employees' Provident Fund Organization (EPFO).
PF helps in building a retirement corpus, promotes long-term savings, and ensures financial stability for employees.
It also acts as a social security measure, providing benefits to employees and their families in case of untimely death or disability.

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