PF means Provident Fund which every employee have to pay. Any Regular employee will have to pay PF. The PF amount will depend on your salary and organizations level. We will get back PF during your retirement. When you leave organization also you will get provident funds depending on our salary and on your working time period in that particular organization. EPFO is largest social organization in India for provident funds. While leaving any organizations you must get your PF which is collection of your small amount of monthly salary. There are different types of provident funds in India. Types and its importance are listed below.
Types of Provident Funds
Employer Provident Fund (EPF)
Every month some amount of monthly salary depending on our basic salary is deducted and contributed for Employer Provident Fund. For this small amounts employer also adds equal amounts to provident fund account. Both employee and employer are invested in provident fund account. These accumulated amounts we can get back at the time of resignation or retirement.
Statutory Provident Fund (SPF)
This type of is only possible for government and semi government employees. This scheme was added into Provident Fund act under the act of PF act 1925. University based or educational based employees come under Statutory Provident Fund.
Recognized Provident Fund (RPF)
This type of PF is option for employees. Any person with more 20 persons in an organization can nominate his/ her name under Recognized Provident Fund.
Public Provident Fund (PPF)
This type of PF was added in 1968. In addition to all the above provident funds we can also add Public Provident Fund. Any person can open his/ her account under Public Provident Fund.