EPFO rules: Employees’ Provident Fund Organization subscribers are not aware of some important rules related to EPF account. This is the reason why people are not able to take advantage of the benefits associated with their account.
EPFO rules: Subscribers of Employees’ Provident Fund Organization (EPFO) are not aware of important rules related to PF account. This is the reason why some subscribers are not even able to take advantage of the benefits associated with their account. In this case, there is a possibility of loss. Most of the subscribers know the rules like insurance, pension, income tax deduction of Rs 7 lakh under the EDLI scheme. But, apart from these, there is also a rule related to Loyalty-cum-Life benefit. In this benefit, the employee can get a benefit of up to Rs 50,000 at the time of retirement.
Actually, all PF account holders are advised to keep contributing to the same EPF account even after changing their jobs. With this, they can get the benefit of Loyalty-cum-Life benefit after contributing in the same account for 20 consecutive years.
What step has the central government taken?
According to EPFO expert Bhanu Pratap Sharma, the CBDT has recommended extending the benefit of loyalty-cum-life benefit to account holders who have contributed to their EPF account for 20 years. The central government has given its approval. This means that if someone is eligible for this then they will get an additional benefit of Rs 50,000.
Who can get how much benefit?
Under the loyalty-cum-life benefit, people with a basic salary of up to Rs 5,000 will 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 will get a benefit of Rs 50,000.
What do I have to do to get the benefits?
The best way for EPFO subscribers to take advantage of this is to continue with the same EPF account even if they change their jobs. For this, you have to give information to your old employer and current employer. 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.
