Employee Provident Fund- Eligibility and Benefits

If you are working for a company, then you are surely bound to receive EPF benefit every month. A certain amount from your total salary is reduced, which you can keep for long until you want to debit when needed. EPFO introduces this saving scheme under the guidelines set by the Government of India. Experts who are hired after proper screening handle every aspect of this scheme. These professionals get good UPSC EPFO salary and other benefits too, as they work for the government.

A candidate who is keen on taking up this profession can check out UPS EPFO apply online and complete the process.

Coming back to the EPF process, the scheme caters to over 5 crore individuals. It is directed by three different acts- Employee’s Provident Fund Scheme Act 1952, Employees Deposit Linked Insurance Scheme Act 1976 and Employees’ Pension Scheme Act 1995.

Employees and employers build the fund through a monetary contribution. 12% is what total amount is deducted from the full salary. One of the benefits of using EPF is tax-free and is withdrawable without paying for the same. Employees during retirement can avail for a lump-sum amount, at the accrued interest rate. An individual can check for the amount balance or withdrawal process at the official website of the EP.

Eligibility Criteria for EPF:

The EPF is open for both public and private sector working employees. You need to be a permanent employee of the company. This means, once you are permanent to the company, then you are bound to get EPF every month. Additionally, any organization, which employs more than 20 individuals, is liable to provide EPF benefits.

Once the employees become an active member and eligible for the scheme, then he/she can avail for different benefits in the form of insurance benefits, pension benefits and EPF.

Benefits of EPF India Scheme

The employee’s provident fund comes with multiple benefits for employees. Some of the benefits EPF employees can get are-

  • Capital Appreciation: The EPF has pre-fixed interest on the total deposit held with the board. In addition to this, there are rewards to the individual, ensuring the overall growth of employees.
  • Corpus for Retirement– Approx. 8.33% of the employer’s contribution is directed towards the EPF scheme. In the long run, the total sum deposited in EPF will help in building a healthy retirement corpus. This corpus will extend the sense of financial security.
  • Emergency Corpus: Emergencies can arrive anytime, and one needs to be financially ready to face. The EPF fund is the best source during the emergency period, and the individual can use the money when needed.
  • Tax-Saving: Under the Section 80C of Indian Income Tax Act, EPF is eligible for tax exemption. Moreover, every earning from EPF is exempted from taxes, and the limit is up to Rs 1.5 lakh.

Easy Premature withdrawal: Eligible members of EPF can avail the benefits of partial withdrawal. In case to meet specific requirements like home construction, bearing wedding, medical treatment and others can use the EPF money.

Circumstances in which EPF can be withdrawn?

An individual can either go for partial or full withdrawal of EPF. However, this withdrawal is only possible in the circumstances like-

  • Retirement
  • Unemployment period extends
  • During emergency
  • Higher Education
  • Wedding
  • Home Renovation

Individuals when joining any company needs to be very clear about the process of EPF joining and withdrawing of the money. It is also vital to keep checking the account on the regular interval to know the balance.

EPF is the best monetary benefit an employed individual can have. Many working professionals end up making a huge amount after years of working and saving in EPF. If you are good at saving money and have a proper strategy to use the money, then maintaining EPF will be beneficial. Make sure you are updated about the change in rules and other aspects of EPF to avoid any issues during withdrawal.

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