EPFO Rules for Account Holders: EPFO can give benefit of up to Rs 50,000 on your EPF account | Know how
EPFO Rules for Account Holders: There are some rules of EPFO about which subscribers are hardly aware. One of these rules is loyalty-cum-life benefits. In this, the employee gets a direct benefit of up to Rs 50,000, but there is a condition.
EPFO Rules for Account Holders: Employees' Provident Fund Organisation or EPFO plays an important role in securing the financial future of employees in India. It offers customers/subscribers a systematic retirement savings plan that ensures financial stability after the job. But there are some rules of EPFO about which subscribers are hardly aware. One of these rules is loyalty-cum-life benefits. In this, the employee gets a direct benefit of up to Rs 50,000, but there is a condition. Let us know what this is and what the condition is:
When will you get the benefit?
All PF account holders are advised to continue contributing to the same EPF account even after changing jobs. This allows them to avail loyalty-cum-life benefits after contributing to the same account for 20 consecutive years.
How will you benefit from this programme?
CBDT had recommended extending the loyalty-cum-life benefit to those account holders who have continuously contributed to their EPF account for 20 years. The central government had approved this programme. Now, those subscribers who have made regular contributions for 20 years will get an additional benefit of Rs 50,000.
Who can get the 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 whose basic salary is between Rs 5,001 and Rs 10,000 will get a benefit of Rs 40,000, and if their basic salary is more than Rs 10,000, they will get a benefit of Rs 50,000.
What should you do to get the benefit?
The best way for EPFO subscribers to avail this benefit is to continue with the same EPF account while changing jobs. For this, you will have to give information to your old employer and present employer.
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