EPFO latest update: If we talk about all government schemes or small savings schemes, then today the highest interest is available on PF only. That’s why it is also the most attractive investment option.
EPFO- Provident fund money is very important for the employed. This is his retirement fund. Just like a savings bank account, money is deposited in it, which is deducted directly from the salary and there is also the benefit of interest on it. If we talk about all government schemes or small savings schemes, then today the highest interest is available on PF only. That’s why it is also the most attractive investment option. But, there are many different benefits available on your EPF, which you should be aware of.
Get free insurance on PF account
Absolutely free insurance is available on the Provident Fund (PF) account. Under the EDLI scheme, insurance up to Rs 7 lakh is available on the PF account. This scheme is Employees Deposit Linked Insurance (EDLI).
easy money out
Withdrawing money from PF account is quite easy. Under certain circumstances, you can easily withdraw the amount up to the specified limit. Money is needed for buying, building, repayment of house, illness, higher education, marriage, at such time 90 percent of the deposit amount can be withdrawn.
Interest on Deactivated Accounts
Interest is also available on dormant accounts. Meaning if your PF account is inactive for more than 3 years, then you will continue to get interest. In 2016, EPFO changed its old decision. Earlier, interest on PF money would stop if it was inactive. Interest is getting on inactive accounts, but the money lying in this account should be transferred or withdrawn in the active or new account. According to the existing rules, tax will be payable on withdrawing money if the account is inactive for more than 5 years.
auto transfer facility
There is no longer a need to fill separate Form-13 to claim EPF money on joining a new job. EPFO has introduced a new Form 11, which is used in place of Form 13. It is used in all cases of auto transfer.
Benefits of UAN
All your PF accounts are linked together in the UAN number linked to Aadhaar. Transferring PF money on changing jobs is now much easier than before.
pension benefits
The trust has also decided to reduce the employee strength limit for coverage under EPFO schemes to 10 from the existing 20. With this, the number of EPFO subscribers will increase to 9 crore. Under the EPF Act, 12% of the basic salary + DA of the employee goes to the PF account. At the same time, the company also contributes 12 percent of the employee’s salary plus DA. Out of 12 percent contribution of the company, 3.67 percent goes to the PF account of the employee and the remaining 8.33 percent goes to the employee pension scheme.
Government will return the money
You might not know, the government currently has more than Rs 43,000 crore unclaimed PF money. Earlier, there was talk of using this amount by the central government for funding government welfare schemes, but if there is a protest, now this amount will be returned with interest to those who are rightfully entitled to it. In such a situation, if any of your old amount is lying unclaimed with EPFO, then now you will get this amount with interest, but for this you will also have to be a little smart.
