New Delhi: Provident Fund, aside from being a long run financial savings scheme offers a number of extra benefits to the subscribers.
Here are 5 benefits of EPF funds that every salaried person must know.
Employees’ Deposit Linked Insurance Scheme (EDLI)
A PF subscriber can avail benefits of free insurance coverage as much as Rs 7 lakh in case of demise through the service interval beneath EDLI scheme. In May, the insurance coverage benefits beneath the EDLI scheme had been enhanced and liberalized. Amount of most insurance coverage profit has been elevated from Rs 6 lakh to Rs 7 lakh.
Pension Scheme for EPF account holder
An EPF Account holder can be entitled to lifelong pension scheme beneath Pension Scheme 1995 (EPS). As regards Employees’ Pension Scheme (EPS), 1995, a minimal pension of Rs. 1,000/- per thirty days has been prescribed with impact from 01.09.2014 for the pensioners beneath Employees’ Pension Scheme (EPS), 1995.
Income Tax exemption
This financial savings scheme gives tax exemption beneath Section 80C of the Income Tax Act to an EPF Account holder.
Partial Fund Withdrawals
EPFO permits for Partial Fund Withdrawals in sure instances similar to medical emergency, house mortgage reimbursement, development or buy of new home, renovation of home, marriage ceremony of kids or self.
Loan in opposition to PF
An EPF member can even avail mortgage within the wake of a monetary emergency with a 1 % charge of curiosity. However, the brief time period must be repaid inside 36 months of mortgage disbursal.
The provisional payroll information of EPFO printed in May confirmed that that EPFO has added round 11.22 lakh web subscribers within the month of March, 2021. Despite Covid-19 pandemic, cumulative web payroll addition for FY 2021 is nearly at par with final 12 months, with 77.08 lakh web additions to subscriber’s base.
Quarterly evaluation of payroll for the FY 2020-21 signifies that web subscriber’s addition improved constantly from 2nd quarter after taking hit within the 1st quarter as a result of disaster of Covid19 pandemic. Maximum enchancment of 33.64 lakh web subscribers was noticed through the 4th quarter (Jan-March, 2021) with a progress of 37.44% as in comparison with the third quarter (Oct-Dec, 2020).
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