Imp news - Do you know about these 6 great benefits associated with PF account?
Imp News - Do you know about these 6 great benefits associated with PF account?
Through Provident Fund Organization (EPFO), Provident Fund is the facility of PF to all employed employees. Every employee's money is deducted every month for some PFs from his salary. This money is later used during retirement. Or say that it is a deposit that provides you financial support after the job. People with PF also get many other benefits, which may be fewer people know about them. So let's tell you about these benefits from PF. Published March 15, 2018
1) The advantage of free insurance
Let us know that once you open a PF account, you get Y with default insurance too. Under the EDLI scheme, your PF account gets up to Rs 6 lakh. This plan is Employee Deposit Linked Insurance (EDLI).
2) The advantage of UAN
You can link all your PF accounts through your UAN number linked to the base. Transfer of PF money on job change has now become much easier than before. Through UAN number, you can find out the number of your PF account through misdok and SMS.
3) Interest on passive accounts
You probably do not know but it is so. PF account holders also get interest on accounts which are inactive. That is, if you have a PF account for more than 3 years, you will still get interest. This change was done by EPFO in 2016. Earlier, for more than 3 years, the interest on PF's money ceased to exist if it was inactive for more than 3 years. According to the present rules, for more than 5 years, in case of continuous inactivity of the account, it will be taxed to withdraw money. 4) Auto transfer feature
Under the new rules, change of job or change of company will not be required to change the PF account. There is no need to filling Form-13 separately to claim PF's money when joining a new job. Now a new Form-11 has been introduced, which works at the place of Form 13.
5) Ease of money
It is now easier to withdraw money from the PF than before. Under special circumstances, you can easily withdraw money. PF's money can be bought by you for buying, making a house, getting home remedies, sickness, marriage, study. In such conditions, you can withdraw 90 percent of the total amount of PF.
6) Advantage of pension after retirement Under the EPFO act, the employee goes to 12 percent PF account of Basic Salary Plus DA. At the same time, the company also distributes 12 percent of the Basic Salary plus DA of the employee. Of the 12 percent contribution of the company, 3.367 percent goes to the employee's PF account and the banki goes into the 8.33 percent pension scheme.