Yes. PF has a direct impact on the pension of an employee. Of of the amount contributed by the employer towards EPF, 8.33% of it goes to the EPS, i.e., Employee Pension Scheme.
Both the employee and employer contribute 12% of the salary. The employers part consists of 12% of basic wages + dearness allowance + retaining allowance. If the number of employees is less than 20 in the firm, then the PF rate is 10%.
As expert advisors of the provident fund on an online platform, Yourca is capable of aiding every establishment in India. As long as you have an Internet connection that can be used to send over a copy of all your documents, we will be able to register for your PF.
For the financial year 17-18, the interest rate was capped at 8.55%. When compared with any other debt instrument, this is an incredible rate of return. Furthermore, a PF account comes within the Exempt, Exempt, Exempt (EEE) status. You need not pay tax on the amount saved in your PF account. Hence, in short, there is no better way to save for your old-age than getting a PF account while you are employed. It acts as a blanket of financial security for you.