What is your understanding of the provident fund contribution?

Question

Accepted Answer

Provident fund contributions are mandatory savings for employees, ensuring financial security post-retirement.

Provident funds are retirement savings schemes mandated by law in many countries.
Typically, both employer and employee contribute a percentage of the employee's salary.
For example, in India, the Employee Provident Fund (EPF) requires a contribution of 12% from both parties.
The accumulated amount earns interest, which is tax-free upon withdrawal after retirement.
Some countries allow early withdrawal under specific circumstances, such as medical emergencies or housing needs.