PF Account: EPFO gives these big benefits to PF account holders, it is important for you to know...
Provident Fund money is very important for a job seeker. This is his retirement fund. Just like a savings bank account, money is deposited in it, which is directly deducted from the salary and also has the benefit of interest.
If we talk about all government schemes or small savings schemes, then today the highest interest is available on PF only. That's why it is the most attractive investment option. But, there are many benefits available separately on your EPF, which you should be aware of.
Get free insurance on a PF account-
Free insurance is available on Provident Fund (PF) accounts. Under the EDLI scheme, insurance of up to Rs 7 lakh is available on the PF account. This scheme is Employees Deposit Linked Insurance (EDLI).
Money will come out easily
Withdrawing money from a PF account is very easy. Under certain circumstances, you can easily withdraw the amount up to the specified limit. 90% of the deposited amount can be withdrawn when money is required for the purchase of a house, construction, repair of the house, illness, higher education, and marriage.
Interest in Deactivated accounts-
Interest is also available on inoperative accounts. Meaning if your PF account is inactive for more than 3 years then you will continue to get interested. In 2016, EPFO changed its old decision. Earlier, interest on PF money used to stop when it remained inactive. Inactive accounts are getting interested, but the money lying in this account should be transferred to the active or new account or withdrawn. According to the current rules, if the account remains inactive continuously for more than 5 years, then the withdrawal will have to be taxed.
There is no longer any need to fill out separate Form-13 to claim EPF money on joining a new job. EPFO has introduced a new Form 11, which is used in place of Form 13. It is used in all cases of auto transfer.
Benefits of UAN-
All your PF accounts are linked together in the UAN number linked to your Aadhaar. Transferring PF money on changing jobs has now become much easier than before.
The trust has also decided to reduce the employee strength limit for coverage under EPFO schemes to 10 from the existing 20. With this, the number of EPFO subscribers will go up to 9 crores. Under the EPF Act, 12 percent of the employee's basic salary + DA goes to the PF account. At the same time, the company also contributes 12 percent of the employee's salary plus DA. Out of the 12 percent contribution of the company, 3.67 percent goes to the employee's PF account and the remaining 8.33 percent goes to the employee's pension scheme.
The government will return the money
You may not know, but the government currently has more than Rs 43,000 crore of unclaimed PF money. Earlier there was talk of using this amount by the central government for funding government welfare schemes, but in case of opposition, now this amount along with interest will be returned to those who are entitled to it. In such a situation, if any old amount of yours is lying unclaimed with EPFO, then now you will get this amount along with interest, but for this, you will also have to be a little agile.
