look news india
PF Bonus: Employees' Provident Fund Organization (EPFO) plays an important role in securing the financial future of employees across the country. It offers retirement savings plans. This ensures long-term financial security after employment. However, a large number of its members are not aware of some rules of EPFO. One of them is the loyalty-cum-life benefit provision. Under this provision, EPF account holders can get a huge benefit of up to Rs 50,000. There is only one condition. To be eligible for this benefit, one must contribute to the EPF account continuously for 20 years.
What is the eligibility to avail the benefit?
The Central Board of Direct Taxes (CBDT) had recommended the loyalty-cum-life benefits initiative to reward EPF subscribers. This is for those who show unwavering commitment by continuously contributing to their accounts for two decades. Later the Central Government approved this scheme. This gives eligible customers an additional benefit of Rs 50,000.
Eligibility for benefits depends on the individual's salary range. Individuals drawing basic salary up to Rs 5,000 get a benefit of Rs 30,000. Whereas those earning Rs 5,001 to Rs 10,000 get Rs 40,000. Individuals with basic salary above Rs 10,000 are eligible for a maximum benefit of Rs 50,000 under this programme.
What should employees do?
EPFO subscribers should ensure to continue contributing to the same EPF account to avail this benefit. Even if they change jobs. It is important to inform both previous and present employers about the decision to continue the existing EPF account to ensure continuity of contributions.
EPFO subscribers have the opportunity to enhance their retirement benefits and avail loyalty-cum-life benefits offered by the organization.