Is gratuity and PF is same?
Unlike employee provident fund which includes employee’s contribution, the gratuity amount is entirely paid by the employer. Gratuity amount is payable at the time of resignation, retirement /superannuation, layoff or voluntary retirement, death, retrenchment, disability or termination.
What is gratuity in EPF?
Gratuity means payment of a lump sum amount to an employee after a certain length of service. It is paid as a reward for the employee’s long service rendered. Gratuity is generally paid at the time of retirement but one can also ask for it while moving jobs after a certain length of service (5 years).
What is the difference between EPF and EPS?
Employee’s Provident Fund (EPF) and Employee Pension Scheme (EPS) are framed under the Employee’s Provident Fund & Miscellaneous Provisions Act, 1952….Difference between EPF and EPS.
| Particulars | EPF | EPS |
|---|---|---|
| Maximum contribution | The contribution is 12\% on salary. | The Contribution is limited to 8.33\% on salary up to Rs.15,000, i.e. Rs. 1250 |
What is the difference between EPF and PPF?
PPF vs EPF: EPF or Employees’ Provident Fund is a government-backed retirement benefit scheme designed for salaried individuals only whereas PPF or Public Provident Fund is designed to provide old age income security to a PPF account holder.
Is gratuity part of basic salary?
Gratuity Amount is equal to one-fourth of the last-drawn basic salary of an employee for each completed six-month period. The retirement gratuity amount which is payable is 16 times the basic salary.
What is the percentage of gratuity in Provident Fund in PF?
Provident fund which is one of the employee benefits is deducted from employees salary @12\% of basic+DA & @12\% is also contributed by the employer to his PF Account. Out of the 12\% of employers contribution, 8.33\% goes to pension fund upto limit of Rs.1250/- & balance is contributed to PF account. Gratuity is not calculated in percentage.
What is the Employee Provident Fund (EPF)?
The Employee Provident Fund, or provident fund as it is normally referred to, is a retirement benefit scheme that is available to salaried employees. Under this scheme, a stipulated amount (currently 12\%) is deducted from the employee’s salary and contributed towards the fund.
What is the difference between PPF and EPF?
PPF – Individuals can save to a maximum of Rs.60000/- in a year in the account. Account can be maintained in a Post Office. EPF – Employees Provident Fund for Private sector where 12\% of Employees share and 12 \% of Employer’s share of Basic Salary + DA is deducted and remitted to PF Authorities
How much is the contribution of EPs in PF?
The contribution is done at 12\% of the salary including dearness allowance. Along with the EPF scheme, the EPS scheme is also offered to employees. EPS stands for Employee Pension Scheme and it is offered to employees whose basic salary plus dearness allowance is up to Rs.15, 000.