Difference between Salry & Wages and All PF types
hanif
(Querist) 21 April 2008
This query is : Resolved
Hi,
What differences are there between wages & salary? Also please let me know the difference in detail between ppf,gpf,epf?
...........Hanif
SHIV KUMAR GUPTA
(Expert) 21 April 2008
wage for worker salary for staff and management people.ppf for public provident fund, epf - for employees provident fund, gpf -,for general provident fund [ for govt employees]
s.k.gupta
09810467564
SANJAY DIXIT
(Expert) 22 April 2008
(1)Wages is paid to the labor directly involved in production either receives money hourly, monthly, or weekly. while salary is paid to the worker or staff related to administration and selling. wages becomes part of the product cost, while the salary treated as selling and administrative expense.
(2)EPF:--
The Employee Provident Fund, or provident fund as it is normally referred to, is a retirement benefit scheme that is available to salaried employees.
Under this scheme, a stipulated amount is deducted from the employee's salary and contributed towards the fund. This amount is decided by the government.
The employer also contributes an equal amount to the fund.
However, an employee can contribute more than the stipulated amount if the scheme allows for it.
The amount accumulated in the EPF is paid at the time of retirement or resignation. Or, it can be transferred from one company to the other if one changes jobs.
In case of the death of the employee, the accumulated balance is paid to the legal heir.
PPF:--
The Public Provident Fund has been established by the central government. You can voluntarily decide to open one. You need not be a salaried individual, you could be a consultant, a freelancer or even working on a contract basis. You can also open this account if you are not earning.
Any individual can open a PPF account in any nationalised bank or its branches that handle PPF accounts. You can also open it at the head post office or certain select post offices.
The minimum amount to be deposited in this account is Rs 500 per year. The maximum amount you can deposit every year is Rs 70,000.
The accumulated sum is repayable after 15 years.
The entire balance can be withdrawn on maturity, that is, after 15 years of the close of the financial year in which you opened the account.
It can be extended for a period of five years after that. During these five years, you earn the rate of interest and can also make fresh deposits.
GPF:--
The General Provident Fund, as it is normally referred to, is a retirement benefit scheme that is available to salaried government servants.
Under this scheme, a stipulated amount is deducted from the employee's salary and contributed towards the fund. This amount is decided by the government.
