EPFO plays an important role in securing the financial future of the employees. It offers a savings plan for retirement that ensures long-term financial security after employment. Do you know that many EPFO members are unaware of some of its important rules? One of these rules is the loyalty-cum-life benefit provision.
PF Bonus: Employees’ Provident Fund Organization (EPFO) has 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. However, a large number of its members are not aware of some of the rules of EPFO. One of them is loyalty-cum-life benefit provision. EPF account holders can get huge benefits of up to Rs 50,000 under this provision. There is only one condition. To be eligible for this benefit, one will have to contribute to the EPF account continuously for 20 years.
What is the eligibility to avail the benefit?
The Central Board of Direct Taxes (CBDT) had recommended the loyalty-cum-life benefit initiative to reward EPF subscribers. This is for those who show unwavering commitment by consistently contributing to their accounts for two decades. Later the Central Government approved this scheme. This gives eligible subscribers an additional benefit of Rs 50,000.
Eligibility for benefits depends on the individual’s salary range. Individuals drawing basic salary up to Rs 5,000 get a benefit of Rs 30,000. While those earning between Rs 5,001 and Rs 10,000 get Rs 40,000. Individuals with basic salary above Rs 10,000 are eligible for a maximum benefit of Rs 50,000 under this programme.
What should employees do?
EPFO subscribers should ensure to continue contributing to the same EPF account to avail this benefit. Even if they change jobs. Informing both previous and present employers about the decision to continue the existing EPF account is important to ensure continuity of contributions.
EPFO subscribers have the opportunity to increase their retirement benefits and avail the loyalty-cum-life benefits offered by the organization.
