Note that with a PF account, these 7 major advantages are found on your account in free
The provident fund, which means the money of PF, makes a lot of sense for the job-makers. It’s not just their savings, but a capital for retirement. There are several benefits associated with PF, whose information may be less likely to be employed. It is very important to know these benefits, because these benefits are available free of charge at the PF. Let’s know what are these benefits …
You get a default insurance even when a free insurance PF account opens on PF. Under the EDLI scheme, your PF account gets up to Rs 6 lakh. The plan is Employees Deposit Linked Insurance (EDLI).
You can link all your PF accounts through your UAN number linked to UAN’s profit basis. Transferring PF money on job change has now become much easier than before.
Interest on passive accounts is also available to interested PF holderson account of inoperative accounts. That is, if your PF account has been inactive for more than 3 years, you will still get so much interest. In 2016, the EPFO had changed its old decision. If you had been idle for more than 3 years before, you would have stopped getting interest on PF’s money. However, the Financial Expert believes that even if you are getting interest on inactive accounts, they should get transferred or withdrawn in an active PF account. According to the existing rules, for more than five years, if the account remains inactive, it will be taxed to withdraw money.
It would be easy to withdraw money from PF even now it has become much easier than before. In special circumstances, you can easily remove the amount up to the fixed limit. Money is required for buying houses, making, house repairs, sickness, higher education, marriage etc. You can withdraw up to 90 percent of your deposit amount for such needs.
Convenience of Auto Transfer Now, to join the new job, there is no need to fill the Form-13 separately to claim EPF’s money. EPFO has introduced a new Form 11, which is used at the place of Form 13. It is used in all cases of auto transfer.
The Government will Return the Money You probably do not know, at present, the government has about Rs 43,000 crore unclaimed PF money. Earlier, the central government used this amount to fund government welfare schemes, but with the interest now, with the interest, this amount will be returned to those who are entitled to it. In such a case, if any of your old money has been unclaimed to the EPFO, then now you will get this amount with interest, but for that you have to be a little tight.
Benefits of Pension: The Trust has also decided to reduce the employee number limit from existing 20 to 10 for coverage under EPFO plans. This will increase the number of EPFO shareholders to 9 crores. Under the EPF Act, 12 percent of the Basic Salary Plus DA of the employee goes to the PF account. At the same time, the company also distributes 12 percent of the employee’s basic salary plus DA. 3.67 per cent of company’s 12 per cent contribution goes to PF account of employee and the remaining 8.33 per cent goes to the Pension Scheme.