मराठी

Distinguish between Provident Fund and Pension.

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प्रश्न

Distinguish between Provident Fund and Pension.

Mention any two differences between Provident Fund and Pension.

फरक स्पष्ट करा
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उत्तर

  • Contributions: In standard provident fund schemes (like the EPF in India), a percentage of the basic salary is deducted from the employee, and the employer matches it. However, for the pension component (like the Employee Pension Scheme - EPS), the funding typically comes from diverting a portion of the employer's contribution, meaning the employee does not make a direct out-of-pocket contribution strictly for the pension.
  • Payout Structure: This is the fundamental financial difference between the two. A Provident Fund acts as a forced savings account that yields a single, large lump-sum payout upon retirement. A Pension is an annuity designed to provide a steady, recurring monthly income post-retirement.
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Social Security in India
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पाठ 12: Industrial Relations, Trade Union and Social Security - QUESTION BANK [पृष्ठ २२६]

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गोयल ब्रदर्स प्रकाशन Commercial Studies [English] Class 10 ICSE
पाठ 12 Industrial Relations, Trade Union and Social Security
QUESTION BANK | Q 7. | पृष्ठ २२६
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