A company-managed retirement savings fund with matched employer contributions, regulated under the Provident Funds Act 1925.
A Provident Fund (PF) is a long-term savings vehicle in which employees and employers each contribute a fixed percentage of basic salary (typically 8.33% to 10% each) into a trust, accumulating interest over the employee's tenure. Pakistani provident funds are regulated under the Provident Funds Act 1925 and registered with the FBR under Part I of the Sixth Schedule to the Income Tax Ordinance.
PF contributions from the employee are tax-deductible (up to statutory limits), and employer contributions plus interest are tax-exempt on withdrawal if conditions are met. Employees typically vest in employer contributions after a minimum period (often 3 to 5 years). Withdrawals are allowed for specific purposes (house purchase, marriage, medical, retirement, resignation).
Many companies substitute PF for gratuity; the employee chooses between the two at separation. PF is administered by a trustee board with audited annual financial statements filed with the SECP. Peoplifi tracks PF contributions per employee, calculates interest, and generates statutory PF statements for audit.
Our company's PF matches the employee's 10% of basic salary contribution, growing at a declared annual rate of 12%.
Peoplifi handles Pakistan payroll, compliance, and HR workflows in one platform.
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