Till a few years ago, the houses of many employed people could also be built on the basis of PF.

Generally, every salaried person is definitely aware of

, ie PF or

Fund , because this is the amount with which most of the salaried people plan their life after retirement... The houses of employed people could also be built on the basis of PF, and that too after retirement, and many also joined PF to get their dear daughters married.

but the reality is that many of our working colleagues are confused about how much PF should be deducted, how much amount should be deposited in their PF account What has been the annual savings in this

That is, how much interest will they get on this amount, and how much will they benefit in terms of income tax from the deduction in the head of PF.

Generally, the basic salary item is definitely there in the salary of a person working in any government or private job.

So, 12 percent of the basic salary (and the sum of basic and DA, ie dearness allowance in the case of government employees) is deducted as PF from your salary.

This percentage applies to companies that have more than 20 employees in total.

The entire amount of deduction in the PF account from the salary of those doing private jobs is deposited in the PF account, the employer also has to pay the same amount on his behalf, out of which about 30 percent, that is, of the basic salary. 3.67 per cent is deposited in your PF account, and the remaining 8.33 per cent is deposited in your pension account... Apart from this, the employer also deposits half a percentage of the basic salary for Employees' Fund Linked Insurance (EDLI), and In the administrative account of PF also he has to deposit 1.10 percent and 0.01 percent for EPF and EDLI respectively.

That is, in the PF and pension accounts of the employee, in total, 24 percent of his basic salary is deposited every month.

In the case of the central government, the government deposits only 1.16 percent of the amount in the EPS account of the employee.

How much is being saved every year in the employee's account...?

There is a simple math to this.

Whatever part of the employee's EPF account is deposited by him and the employer, he is given interest at the rate of 8.65 percent annually till the financial year 2016-17, although the interest rate for the financial year 2017-18 is yet to be announced.

Whatever amount is deducted from the salary of the employee under the head of PF, it is considered as his savings, and out of that, the amount up to Rs 1,50,000 lakh is tax-free, that is, tax-free.

This means that if you earn so much that you have to pay income tax at the rate of 30 per cent, then you can pay tax on deduction of up to Rs 1,50,000 in PF (45,000) and education cess (1,350) inclusive of Rs 46,350. You can save income tax of Rs.