Most EPFO subscribers do not know many such rules related to their EPF account, due to which they may suffer loss. Subscribers should know about similar Loyalty-cum-Life benefit.
new Delhi. Employees Provident Fund Organization (EPFO) subscribers are prone to major losses due to not knowing many important rules related to their EPF account. Most subscribers do not know the rules related to insurance, pension, income tax deduction etc. of Rs 6 lakh under the EDLI scheme. One of these rules is also related to Loyalty-cum-Life benefit. Under this benefit, if an employee has contributed to his EPF account for 20 consecutive years, then he can get benefits up to Rs 50,000 at the time of retirement.
Actually, all EPF account holders are advised to continue to contribute to the same EPF account even after changing their jobs. With this, they can get the benefit of Loyalty-cum-Life benefit after contributing to the same account for 20 consecutive years.
According to an expert, in the midst of the lockdown, on April 13, CBDT has recommended the benefit of Loyalty-cum-Life benefit to account holders who have contributed to their EPF account for 20 years. The central government has approved this, which means that if someone is eligible for it, they will get a benefit of Rs 50,000.
Who can get how much benefit?
According to the information received, people with basic salary up to Rs 5,000 will get a benefit of Rs 30,000 under Loyalty-cum-Life Insurance. Those whose basic salary will be between Rs 5,001 to Rs 10,000 will be eligible for a benefit of Rs 40,000. At the same time, if the monthly basic salary of an employee is more than Rs 10,000, then they will get the benefit of Rs 50,000.
?
The best way for EPFO subscribers to take advantage of this is that even if they change their jobs, continue with the same EPF account. For this, you have to give information to your old employer and current employer. It is usually advised not to do PF Withdarwal while doing the job. Subscribers may suffer a loss in retirement funds, including income tax. This also causes loss of pension benefits and loyalty to them.
