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.html
Financial Times Lexicon. (n.d.). Retrieved 12 05, 2010, from The Financial Time Ltd
2010:
http://lexicon.ft.com/term.asp?t=provident-fund
Unilever. (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