What is provident fund and how does it work?
The main aim of a pension or provident fund is to provide benefits for its members when they retire from employment. The fund also usually pays benefits when a member dies while still working, or is unable to work because of illness, or is retrenched.
Is provident fund a pension?
Provident Funds and Pension Funds are both lucrative retirement schemes. They differ from each other on the basis of certain parameters, such as eligibility, returns, and contributions. While public servants are automatically enrolled in a pension fund scheme by default to ensure their financial security.
What is the Zambia National provident fund?
An Act to establish a National Provident Fund and to provide for its administration and for the payment of contributions into and benefit out of the Fund; and to provide for matters incidental thereto and connected therewith. 1. This Act may be cited as the Zambia National Provident Fund Act.
How is provident fund paid out?
You should receive your provident fund payout within 21 days if your tax affairs are in order and all the required documents (such as a copy of your ID, a completed instruction form stating where the money should go, and proof of banking details) have been sent to the fund by your employer.
What is the difference between UIF and provident fund?
UIF protects you against unemployment for a few months, your provident fund is supposed to provide you with income when you retire (age 65 or so).
How can I use provident fund?
According to the EPF rules, 12 percent of your salary must go towards your provident fund. Your company is also required to contribute the same 12 percent, out of which 8.33 percent of the salary is directed towards the Employee Pension Scheme or EPS. The remaining 3.67 percent are put into your EPF.
What is the difference between gratuity and provident fund?
Unlike employee provident fund which includes employee’s contribution, the gratuity amount is entirely paid by the employer. Under the Payment of Gratuity Act, 1972 a certain percentage of the salary is calculated and deposited in a gratuity account payable later.
How is NAPSA calculated in Zambia?
NAPSA law provides for a minimum pension. This is the lowest monthly retirement or invalidity pension payable in a given year and is computed as follows: 20% of the National Average Earnings (NAE) applicable in the year of retirement or invalidity, as obtained from the Central Statistical Office.
How much is funeral grant in Zambia?
According to NAPSA the payment which is made to the deceased family is 10 times the minimum pension in the year of the member’s death. The amount payable for 2010 is K4, 347,426.00. The money is paid to a spouse, parents or siblings of the dead person.
What happens to my provident fund when I resign?
There is therefore no need to resign as you suggest, and no benefit in doing so. In addition to paying tax on any amounts cashed in now, by resigning, you would also lose what you have accumulated to date and the benefit of compound interest on those savings.
How do I check if I have provident fund?
To find out if there are any unclaimed benefits owing to you, you can access a central database on the Financial Sector Conduct Authority website at www.fsca.co.za. Here you can input basic information such as your name, ID number, fund name, name of employer etc, so that the search engine can check for a match.
How can I withdraw my provident fund?
Process to Withdraw Employees’ Provident Fund (EPF)
- Update your Aadhaar number via the UAN portal.
- Get your Aadhaar authenticated and link it to your UAN.
- Fill in the withdrawal form at the EPF member portal.
- Submit the form and you will receive the withdrawn amount.
How can I check my provident fund balance?
An EPFO member can check one’s PF balance by sending SMS to 7738299899. The SMS text format would be — EPFOHO UAN ENG. Last three digits in the SMS are first three digits of the preferred language.
When can I withdraw my provident fund?
EPF can be partially or completely withdrawn. Complete withdrawal is allowed when an individual retires or if he/she remains unemployed for more than 2 months. Whereas, partial EPF withdrawal is allowed under certain circumstances including medical purposes, marriage, home loan repayment, etc.
How much gratuity is paid after 5 years?
Calculation of Gratuity in Case of Death of an Employee
| Tenure of service | Amount payable towards gratuity |
|---|---|
| Less than a year | 2 * basis salary |
| 1 year or more but less than 5 years | 6 * basic salary |
| 5 years or more but less than 11 years | 12 * basic salary |
| 11 years or more but less than 20 years | 20 * basic salary |
Is gratuity deducted from salary?
Yes, gratuity is part of CTC. when you complete 5 years and resign you job, then you will get your gratuity amount. It will not be deducted from your net salary.
How do I check my NAPSA money?
In order to improve the quality of contribution data the Authority holds for each contributor, workers are encouraged to regularly check the status of their contributions by visiting a NAPSA office or checking via the NAPSA online platform visa our website (napsa.co.zm) or using their mobile phone by either downloading …
How much do NAPSA employees get paid?
The minimum wage for domestic workers was increased from K522. 4o to K993. 60 while minimum wage for grade one shop workers and general workers has also risen from K1,132 to K1, 698.60 effective 10th September 2018. Following this revision, the minimum NAPSA monthly contribution for domestic workers is K99.