EPF Account Holders Get ₹50,000 As an Additional Bonus
Not every member is aware of the essential rules related to PF accounts set by the Employees Provident Fund Organisation (EPFO). Because of this lack of knowledge, members have not been able to take the advantages offered by the retirement body on the PF accounts.
Rules Which EPF Account Holders Didn’t Know?
Most commonly people know about the rules related to insurance, pension, and income tax deduction of ₹700,000 under the EDLI scheme. But also, apart from this, there is a rule which will not even benefit the loyalty but also provides the life benefit. Under this rule, an employee at the time of retirement can get a financial benefit of ₹50,000. For this, we can advise all the PF members to contribute to the same PF account even if they change their job till retirement to get the benefit.
Even after contributing to the same PF account for 20 consecutive years, employers can avail “ loyalty-cum-life benefits”. According to the knowledge of Bhanu Pratap Sharma, an EPFO expert, CBDT has suggested an extended loyalty-cum-life benefit for the account holders who have contributed to the same PF account for 20 consecutive years.
Also read:Benefits OF EPFO E-Nominations, How To Register E-Nominations
Approved By Central Government For Account Holders
The plan has already been approved by the Central Government, and this directly indicates that a PF member will get an additional benefit of ₹50,000. However, under the loyalty-cum-life benefit, those who have ₹5,000 or below as a basic salary will get the benefit of up to ₹30,000 only. Meanwhile, Members having the basis pay between Rs 5,001 to Rs 10,000 will get the greater additional benefits. But remember you will have to keep the EPF account active even if as a member you change your job.
The best advice anyone can provide the members is that you should not avail the PF amount while working, and inform your old employer and the current employer to avail of the benefit.