EPFO News: Your provident fund account does not only provide retirement fund and many other benefits are available. Therefore, it is important that the rules of the Employees’ Provident Fund Organization (EPFO) be read carefully.
If the rules are not known, the subscribers are not able to take advantage of the benefits associated with their account. Here we sit at a loss. Especially in the case of EPF withdrawal, this mistake happens quite often. Today we will tell you what benefits EPFO gives to its subscribers.
How to get the benefit of 50 thousand rupees?
EPF account holders get benefits like insurance, pension, income tax deduction up to Rs 7 lakh under the EDLI scheme. But, apart from these, there is also a loyalty-cum-life benefit. In this, if an employee regularly contributes to his EPF account for 20 consecutive years, then he gets a benefit of up to Rs 50,000 on retirement. This is the reason why EPF account holders are advised to continue contributing to their EPF account without withdrawal even after changing jobs. Contribution to the account for 20 consecutive years gives the benefit of Loyalty-cum-Life benefit.
This benefit surfaced during covid
Retired EPFO Enforcement Officer and Expert Bhanu Pratap Sharma says that during the lockdown in the year 2020, CBDT had recommended to extend the benefit of Loyalty-cum-Life benefit to those account holders who have contributed to their EPF account for 20 years. It was also approved by the central government. Meaning if someone is eligible for this then they will get an additional benefit of Rs 50,000.
Who will get how much benefit?
Under the loyalty-cum-life benefit, people with a basic salary of up to Rs 5,000 get a benefit of Rs 30,000. Those with a basic salary between Rs 5,001 to Rs 10,000 will get the benefit of Rs 40,000 and if the basic salary is more than Rs 10,000, they get a benefit of Rs 50,000.
What do you have to do to take advantage?
The best way for EPFO subscribers to take advantage of this is to continue with the same EPF account if they change their jobs. Your old employer and current employer have to give this information. It is generally advised not to do PF Withdrawal while working. Subscribers may suffer loss in retirement fund including income tax. Due to this they also lose pension benefits and loyalty.
