How does it feel to know that your future is financially secured?
Imagine how it would feel to be employed for more than fifty years, earning a good income, but after you retire you have nothing to support your family leave alone yourself. How? Just because you had not joined a pension scheme to help you save for after retirement purpose. It’s very painful to suffer at old age yet you could have changed that situation when you were still young and working. For this reason, most governments of developing nations came up with a plan to deal with that problem. The Employee Provident fund was an initiative by the governments and it’s a compulsory, government-managed retirement saving scheme that enables both public and private sector employees to contribute part of their monthly salaries towards their pension fund. Due to the sensitivity of the matter, employers seek the services of PF consultant to help in all formalities required.
A PF consultant is designed to offer solutions on the particular needs/requirements of a client. That is, delivering unmatched business value to its customers by combining process excellence, service delivery innovations, and quality frameworks. Are there any benefits of these consulting firms? Well, a PF consultant plays a paramount role to both the employer and employees. Let’s briefly look at those benefits.
Major benefits of PF Consultant to the general firm
1. The help in submitting the application to obtain the code numbers.
2. They help in filling form 2, 11, and 13 which contains the details of the eligible employees and their families.
3. They also help in arranging and issuing account numbers to employees
4. Offering guidance on the benefit schemes
5. They help in designing the compensation structure as well as the contribution.
6. They can also serve as ESI consultant
7. Ensures that retirement and pension benefits are received on time
8. They help in coordinating legal matters and representing the firm to PF authorities
9. Submitting following returns
10. Updates and educates employers of any developments
11. Ensuring timely compliances.
Benefits to Employees
An employee who has a PF account is far much ahead of those that don’t have. Some of the benefits they enjoy include:
(1). T. benefits
The contribution made to this account is tax exempted and the interest rate is income thx exempted as well. What does this mean? It means that your PF account will continue to attract interest even if it has been dormant for more than 3years. Additionally, after 5 years of service, the withdrawals are not taxable unless you quit your job or the business is terminated.
(2). Insurance benefit
In conjunction with the EPF plan, every member becomes automatically eligible for the Employees Deposit Linked Insurance Scheme. This means that in case of death, your registered nominee will receive the lump sum.
(3). Premature withdrawal option
You can have access to your money after 5 to 10 years of service. However, this is in cases of unemployment, medical treatment or home loan repayment.
(4). High returns
You are assured of high possibilities of enjoying higher returns in the future from your PF kitty.