In the last week of September, the retirement fund body EPFO once again made the headlines when it was revealed that the subscribers are no longer required to file separate EPF transfer claims using Form-13 after changing jobs as it will now be done automatically. After this, at the time of joining a new employer, the employees’ can give details of their previous EPF account in new composite F-11 form to give a declaration about their details. As per the rules, 12 per cent of employee’s salary goes to EPF. Out of this, 8.33 per cent is invested in EPS or pension scheme while the remaining amount is invested in EPF. The EPFO membership has many benefits. To aware about these benefits, EPFO recently posted a tweet in which it highlighted 5 important advantages. Here are those EPF benefits that were highlighted in the tweet:
1. EPF is one of the best investments you make in life. Not only you are able to make a decent amount of savings till retirement, you also earn interest on that amount. Your EPF account continues to earn interest even if it has been inoperative for more than 3 years, or 36 months.
2. If something unfortunate happens, then under the Employees’ Deposit Linked Insurance Scheme, insurance benefit up to Rs. 6 lakh is admissible to the survivor of a deceased member.
3. If you contribute for 10 years, then as per the Employees’ Pension Scheme 1995, you are eligible to get a life-long pension. The retirement body has three social security schemes Employees’ Provident Fund 1952, Employees’ Pension Scheme 1995 and Employees’ Deposit Linked Insurance Scheme 1976 to provide provident fund, pension and group term insurance to its over four crore subscribers.
Employers are required to make aware employees the benefits of Retaining the PF membership instead of withdrawing accumulations prematurely pic.twitter.com/bnDmObBdI7
— EPF INDIA (@socialepfo) August 24, 2017
4. The Aadhaar-linked UAN number (verified and authenticated) facilitates the linking of previous accounts of the members in case of change of job. This means that the new joinees don’t have to file separate EPF transfer claims using Form-13 after changing jobs.
5. EPFO subscribers can avail the facility of withdrawals for the purpose of, purchase/construction of house, repayment of house, illness, higher education, marriage etc. Yes, you read it right. You can use this amount for all the above-mentioned things.