1. #1
    Unregistered

    Difference between Pension fund and Provident fund?

    In few months I will be retired from the job which I was working for around 10 years and now I just have a doubt regarding the savings of our salary which is done. I just need to know what is the main difference between the Pension fund and Provident fund? Is it both given in different phase after our retirement?

  2. #2
    yogesh Array
    Join Date
    Sep 2012
    Posts
    530

    Re: Difference between Pension fund and Provident fund?

    hello friend I think both are common and have same way of providing money for employees after retirement.They are both called funds . the benefits at retirement are dependent upon investment of performance. generally key differences lie in the way fund contributions are treated for income tax purposes and in the way the benefits are paid out.Contributions to provident fundsmade by employers are tax deductible while contributions by members are not.providential fund's money available after retirement in whole case while pension fund money get one third or monthly. To counter this, in many cases. employees do not contribute but let their employers make a bigger contribution in this process.I hope it is enough to understandthanks

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