Provident fund – Government v/s private

POSTED BY Yogesh Borse ON August 16, 2013 12:07 pm COMMENTS (3)

Can any body pl explain how provident fund in Government service is different from that of Private service? On retirement govt employees get a secured pension linked to DA whereas private service employees get only their accumulated amount with due interest and a funny amount as pension. Does this mean that govt employment benefits outweigh private employment benefits post retirement? If so, does govt subsidise these generous pension payouts from the taxpayers money? Confusion…..

3 replies on this article “Provident fund – Government v/s private”

  1. Dear Yogesh, in that case, one should try to get a Govt. Job. 🙂

    Thanks

    Ashal

  2. Yogesh Borse says:

    Thanks Ashal, My only concern was that government employees are benefited more as against private employees.

  3. Dear Yogesh, I think your confusing the EPF with the EPS. the pvt. employees who are covered under the EPF rules are getting the peanut pension from EPS. it’s part of that arrangement. whereas the so called generous pension given to Govt. employee is from the Govt. Interestingly employees who have joined service after 1st Jan 2004 for Central govt. are now no kore part of this defined pension. They are contributing into NPS & their pension is linked with the corpus created at the time of retirement.

    Thanks

    Ashal

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