If you work, then obviously you also contribute to EPF. EPF (Employees’ Provident Fund) is a retirement benefit scheme provided by the Employees’ Provident Fund Organization (EPFO). In this, employees and employers contribute to the scheme on monthly basis in a ratio equal to 12% of basic salary and dearness allowance. That is, the fixed amount that you are depositing in EPF every month is quite beneficial. If you understand this then you will not want to withdraw money from EPF. Come, let us know how the amount deposited in EPF proves to be very helpful for you financially.
get so many benefits
long term financial security
The amount deposited in the EPF account cannot be easily withdrawn for your daily needs and your money is being saved.
Use of savings at the time of retirement
The amount deposited under the EPF scheme can be used at the time of retirement of the employee. This saves money and provides security relief to the employee.
Useful in emergency
In case of any emergency, employees can use this fund ahead of time. In this scheme, provision for such premature withdrawal has been made in certain special cases.
Unemployment/Income Loss
If for some reason the employee loses his/her current job, this fund can be used to meet expenses. The employee is free to withdraw 75% of his EPF fund one month after leaving the job and the remaining 25% after 2 months of unemployment. In case of sudden termination from the job, the employee can use this fund until he finds a suitable new job.
helpful in case of death
If due to any reason the employee dies, then the amount collected along with interest is given to the employee’s nominee, which helps the family to face difficult circumstances.
Disability or physical disability of the employee
If due to some reason the employee has become disabled, that is, he is not in a condition to work, then he can use this fund in this situation.
pension scheme
The employer/company not only contributes to the PF fund, but also makes the required contribution towards the employee’s pension which can be used by the employee after retirement.
Can be easily used everywhere
With the help of their Universal Account Number (UAN), employees can easily access their PF account by visiting the EPF Membership Portal. If they change jobs, they can also transfer their account.
Latest Business News
