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EPFO Update: No one knows this rule of EPFO, one gets the benefit of Rs 50000..

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The money deposited in the Provident Fund is yours. Whether it is transfer or withdrawal, the rules have been made easy. Also, retirement benefits are sufficient. Interest is good. But, there are some rules which the subscribers are hardly aware of. Employees Provident Fund Organization (EPFO) has a similar rule. This rule is related to Loyalty-cum-Life benefit. In this benefit, the employee gets direct benefits up to Rs 50,000. But, its condition has to be fulfilled.

When do you get the benefit?

All PF account holders are advised to continue contributing to the same EPF account even after changing jobs. With this, they can get the benefit of Loyalty-cum-Life benefit after contributing to the same account continuously for 20 years.

How do you get the benefit of this program?

CBDT had recommended giving the benefit of Loyalty-cum-Life benefit to those account holders who have continuously contributed to their EPF account for 20 years. The central government had approved this program. Now those subscribers who have contributed regularly for 20 years will get an additional benefit of Rs 50,000.

Which subscribers will get the benefit?

Under Loyalty-cum-Life benefit, people with a basic salary of up to Rs 5,000 get a benefit of Rs 30,000. Those with basic salary between Rs 5,001 to Rs 10,000 will get a benefit of Rs 40,000 and if their basic salary is more than Rs 10,000, they will get a benefit of Rs 50,000.

How will you get benefits? What will need to be done?

The best way for EPFO subscribers to avail of this benefit is to continue with the same EPF account while changing 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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