EPFO: These are the five benefits that PF account holders get on their account
By Lokmat English Desk | Published: June 3, 2021 03:04 PM2021-06-03T15:04:31+5:302021-06-03T15:04:31+5:30
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The Employees Provident Fund Organization (EPFO) provides PF facility to all employees. For this a certain amount is deducted from the salary of the employee to be credited to the PF account.
The amount saved through PF is beneficial to employees after retirement. However, PF account holders get many benefits not only after retirement but also through this account. Let's learn about those benefits ...
मोफत विमा सुविधा
If a member of the EPFO is depositing contributions regularly, then in the event of his death, his family member can avail the Insurance Scheme 1976 (EDLI). Under this scheme, the member gets 20 times his last monthly salary. This amount can be up to a maximum of 6 lakh rupees. Recently, the amount of assistance has been increased from Rs 6 lakh to Rs 7 lakh.
PF is the best option if you want tax relief. But you should know that the new tax system does not have such a facility but the old tax system has this facility. EPF account holders can save up to 12 per cent in the tax levied on their salary as per Section 80C of the Income Tax Act.
8.33% of the amount deposited in the PF account is credited to the Employees' Pension Scheme. This amount is received in the form of a pension after retirement. Retirement is a major factor in a person's old age. The government also runs various schemes for this.
Interest is also paid on inactive PF accounts of employees. As per the changes made in the law in 2016, PF account holders are now paid interest on deposits on their PF accounts which have been inactive for more than three years. Earlier, there was no provision to pay interest on PF accounts which had been inactive for three years.
PF Fund is a great facility. From this you can withdraw a certain amount of money when you need it. So you don't have time to borrow.
