EPFO Big Update : EPF the account open by EPFO . For a salaried person, EPF is the scheme under which the employer and employee contribute for the payout of the PF amount. Maximum EPF account holders are not telling much about the PF deduction. If your monthly salary also gets deducted and that is also under PF, you can take 7 big benefits from it. Here, we tell you the benefits that are “yours” in monthly PF deduction.
1. Pension Benefits After Retirement –
Provident Fund has many benefits, among which one can invest the money separately in two parts; EPF, Employee Provident Fund, and the EPS, Employee Pension Scheme, where 12 percent is funded from one’s salary towards EPF, while the remaining 12 percent comes from the employer. Part of this amount goes into a pension fund for the future. After the 58 years of age, these benefits become effective, but you are required to work there for a minimum of 10 years to qualify. The minimum pension is Rs. 1,000, part of lifetime security. This system aims to provide them with financial sources later.
2. Nominate Benefit Employees-
The latest EPFO announcement has been to all subscribers about getting nomination done. You can get someone nominated from your account. If the member dies, then his nominee will get EPF money. Safe and transparent processes do all this.
3. Employee Can Invest In VPF Too-
This is for employees who want to save extra money. VPF is a plan for saving, above and beyond EPF. Employees can give extra amounts as per their salaries from their basic salaries in VPF.
4. These Rules Are There For Withdrawing Money-
There are certain rules that need to be followed in order to withdraw money from EPF after changing jobs. No one could withdraw money until they were out of job for 2 months. Under a termination of old employment and acceptance of new employment, the transfer of the fund could also be done.
5. Partial Withdrawals-Under Certain
circumstances, some money can be withdrawn from the account that comes under partial withdrawals. These are marriage, education, medical needs. It is necessary that the account attains an age of 7 years; otherwise, you cannot withdraw more than 50 percent at one time. It can be withdrawn for building, buying, or renovating a house. It can also be withdrawn for surgery or medical treatment of a family member. It assists in real-time emergency situations.
6. This Much EPF Interest –
You would get compounded interest every year for your contribution: the government currently provides interest at the rate of 8.15 percent per annum. There will be no return for pension funds. The amount deposited will be the amount given in the end without any interest or extra benefits.
7. Life Insurance Benefits-
In the absence of a life insurance cover from the company, employees can obtain life protection insurance under the EDLI scheme. The limitation on coverage under this scheme is narrow and the benefits are lesser. Thus, one can avail of this additional benefit when no life insurance is offered by the company.
Also Read: Indian Railways General Ticket Update: New Passenger Benefits From March 1