Do not make this mistake related to PF account even by mistake, otherwise you will suffer a loss of Rs 50,000!

New Delhi. There is a possibility of huge loss due to Employees Provident Fund Organization (EPFO) subscribers not knowing many important rules related to their EPF account. Most of the subscribers do not know the rules related to insurance of Rs 6 lakh, pension, income tax deduction etc. under the EDLI scheme. One of these is the rule related to Loyalty-cum-Life benefit. Under this benefit, if an employee has contributed to his EPF account for 20 consecutive years, he can get a benefit of up to Rs 50,000 at the time of retirement.

Actually, all EPF account holders are advised to continue contributing 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 continuously for 20 years.

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What steps has the Central Government taken?
An expert says that amid the lockdown, on April 13, CBDT has recommended extending the benefit of Loyalty-cum-Life benefit to those account holders who have contributed to their EPF account for 20 years. The Central Government has approved it, which means that if anyone is eligible for it then they will get a benefit of Rs 50,000.

Who can get how much benefit?
According to the information received, under Loyalty-cum-Life Insurance, people with basic salary up to Rs 5,000 will be able to get a benefit of Rs 30,000. Those whose basic salary will be between Rs 5,001 to Rs 10,000 will be eligible for the benefit of Rs 40,000. At the same time, if the monthly basic salary of an employee is more than Rs 10,000, then he will get the benefit of Rs 50,000.

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What needs to be done to avail the benefits?
The best way for EPFO ​​subscribers to avail this benefit is to continue with the same EPF account even if they change jobs. For this you have to give information to your old employer and present employer. Generally, it is advised not to do PF Withdrawal while working. Subscribers may suffer loss in their retirement funds including income tax due to this. Due to this, they also lose pension benefits and loyalty.

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Tags: business news in hindi, EPFO, EPFO account, EPFO subscribers, EPFO website

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