Table of Contents
Do government employees get PF?
GPF or General Provident Fund is a savings scheme available to government employees. EPF or Employees’ Provident Fund is a savings scheme available to employees in companies with more than 20 workers. PPF or Public Provident Fund is available to everyone – whether employed, self-employed or unemployed.
Can a govt employee open a PPF account?
GPF and PPF eligibility: Both salaried and self-employed individuals can invest in PPF while only government employees can invest in GPF.
Do central govt employees have PF?
4) As the dearness allowance is linked to the basic salary, a hike in DA will also raise the monthly provident fund (PF) and gratuity amount of the central government employees. So, PF, Travel Allowance and gratuity will go up for the employees and the pensioners.
Is NPS compulsory for government employees Quora?
The National Pension Scheme(NPS) is a social security initiative of the Central Government. It is compulsory for government employees to invest in NPS as government had withdrawn the Old Pension Scheme in 2004, thereby shifting the onus of retirement planning from employer to employee. For rest, NPS is optional.
What is the difference between VPF and NPS?
In NPS, one gets exposure in both equity and debt while EPF or VPF is completely a debt investment. An NPS account holder can choose up to 75 per cent equity exposure while there is binding that one can’t withdraw more than 60 per cent of the NPS maturity amount.”
Can a government employee invest in PPF and NPS at the same time?
Yes Government Employees can in invest in all of them at the same time. Although you will not be getting the tax benefit of PPF if you already have been receiving the benefit of EPF. As both of them are covered under the bracket of Section 80 C. Where investing in NPS voluntarily gives you a deduction of 50000 Rs under Section 80 CCD
What is the difference between NPs and PF?
NPS is compulsory for all central government/state government/public sector banks/companies employees. PF is personal choice for government employee. Government do not force for PF. PF is extra benifit scheme for high salaried govt Employees, they can choose this as extra future benifit same as private sector companies employees.
How much should an employer contribute to NPS?
Both employees and employers in private sector contribute 10 per cent of basic salary + DA to NPS. Employees’ contributions up to Rs 1.5 lakh are eligible for tax deductions in a financial year, while employers’ contributions up to 10 per cent of employees’ salary (basic + DA) is tax free.
Is NPS tax free for employees?
Employers’ contributions up to Rs 1.5 lakh is tax free. Originally launched to provide pension to government employees, who joined their services after December 31, 2003, employees contribute 10 per cent of basic salary and DA in NPS, while government contributes 14 per cent.