What is a Provident Fund?
A provident fund is a long-term savings plan for employees and the self-employed, which makes it possible to save money for retirement and enjoy tax benefits. The funds can be withdrawn after reaching retirement age as a capital sum, in installments, or as a tax-free monthly annuity.
In the case of employees, the employer participates with the employee in monthly deposits, while the self-employed deposit into the fund themselves. The funds can be invested in different investment routes, each with a different level of risk depending on the wishes and needs of the savers.
