Employed people have to deposit some part of their salary in the Employees Provident Fund Organization (EPFO) account. The employer also has to deposit the same amount as deposited by the employee. This money is very useful after retirement.
EPFO Rules for PF Subscriber: Employed people have to deposit some part of their salary in the Employees Provident Fund Organization (EPFO) account. The employer also has to deposit the same amount as deposited by the employee. This money is very useful after retirement. However, if you want, you can withdraw it after retirement or before. The money deposited in the provident fund is yours. Along with good interest, there are some rules regarding PF money, about which most of the subscribers are not aware. For example, do you know that there is a rule of EPFO that if you fulfill certain conditions then you get a direct benefit of up to Rs 50,000.
What is EPFO’s loyalty cum life benefit?
According to EPFO, if you follow some conditions then a bonus of Rs 50 thousand will be given directly in your account. Now what is the condition, if fulfilled, 50 thousand rupees will come to your account. Let us know. The Central Board of Direct Taxes (CBDT) had recommended the Loyalty-cum-Life Benefit initiative to reward EPF subscribers. Under this rule, the employee gets direct benefit up to Rs 50,000.
What are the conditions
The benefit of this bonus is available to those people who show unwavering commitment by continuously contributing to their accounts for two decades i.e. 20 years. That is, those subscribers who deposit contributions in the same PF account continuously for 20 years, they get its benefit. That means subscribers who have made regular contributions for 20 years will get an additional benefit of Rs 50,000.
What do employees have to do?
Now the question arises in the mind that what will the employees have to do for this. To avail this benefit, EPFO subscribers will have to continue contribution in the same EPF account. That is, all PF account holders are advised to continue contributing to the same EPF account even after changing jobs. This will give them the opportunity to avail loyalty-cum-life benefits after continuously contributing for 20 years in the same account. It is important to inform both the previous and current employers about the decision to continue the existing EPF account.
Who will be included in this benefit
Under loyalty-cum-life benefits, people with basic salary up to Rs 5000 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. If the basic salary is more than Rs 10,000, they will be given a benefit of Rs 50,000.
What is EPFO?
Employees’ Provident Fund Organization (EPFO) plays an important role in securing the financial future of employees across the country. It offers retirement savings plans. This ensures long term financial security after employment. At present, EPFO has fixed the interest rate at 8.25 percent for FY 2023-24. It is worth noting here that if you also want to take the benefit of Rs 50,000 and increase the retirement benefit, then you will have to fulfill the condition of EPFO.
