How to calculate provident fund in Public and Private Sector?

Provident Fund

• Amount of money to facilitates employees at their maturity or retirement.

• In case of unexpected death the beneficial for their dependents.

History Of The Fund

• It is firstly introduced in Holland or Belgium in the year 1820s.

• After that Switzerland started in the year 1849.

• The First Modern Fund started in US in the year 1924.

Formalities

• The company must be 3 years old.

• Minimum no of employee must be 20.

• Employee drawing basic salary up to Rs 6500.

• Every employee should submit in Form 5A (in duplicate) to the commissioner

Sui Southern Gas Company

Employee Basic Salary 12,000

Provident Fund 7.5% 900

Employer contribution 900

Provident Fund / Month 1,800

Provident Fund / Year 21,600

United Bank Limited

Employee Basic Salary 12,000

Provident Fund 8.33% 1,000

Employer Contribution 1,000

Provident Fund / Month 2,000

Provident Fund / Year 24,000

Unilever

Employee Net Salary / Month 25,000

Net Salary / Year 300,000

Employer Contribution 6% / year 18,000

Bibliography

CHRM. (n.d.). Retrieved 12 10, 2010, from chrmglobal:http://www.chrmglobal.com/Briefcase/75/1/What-is-Provident-Fund-and-how-is-it-calculated-.Html eHow. (n.d.). Retrieved 12 10, 2010, from eHow, Inc: http://www.ehow.com/about_5426376_first-mutual-fund-established.htmlFinancial Times Lexicon. (n.d.). Retrieved 12 05, 2010, from The Financial Time Ltd 2010:http://lexicon.ft.com/term.asp?t=provident-fundUnilever. (n.d.). Googlle Documents. Retrieved 12 05, 2010, from Google: http://docs.google.com/viewer?a=v&q=cache:mb2bdMfENkkJ:www.unilever.pk/Images/Unilever%2520Pakistan%2520Limited%2520Consolidated_tcm96-215206.pdf+provident+fund+unilever&hl=en&gl=pk&pid=bl&srcid=ADGEESjLcJCcW-PdSPxUgp3L7v7U7Q_uuqlHb3v7BRuG5j0XAaUb4cP2Bs1l