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The money deposited in the provident fund is yours. Be it transfer or withdrawal, the rules have been simplified. Additionally, the retirement benefits are also adequate. Interest is good. But, there are some rules which the subscribers may hardly know about. Employees Provident Fund Organization (EPFO) also has a similar rule. This rule is related to loyalty-cum-life benefits. In this benefit, the employee gets a direct benefit of up to Rs 50,000. But, its condition has to be fulfilled.
When will you get the benefit?
All PF account holders are advised to continue contributing to the same EPF account even after changing jobs. This allows them to avail loyalty-cum-life benefits after contributing to the same account for 20 consecutive years.
How will you benefit from this program?
CBDT had recommended extending the benefit of loyalty-cum-life benefit to those account holders who have contributed continuously to their EPF account for 20 years. The Central Government had approved this program. Now subscribers who have made regular contributions for 20 years will get an additional benefit of Rs 50,000.
Which subscribers will get the benefit?
Under loyalty-cum-life benefits, people with basic salary up to Rs 5,000 get a benefit of Rs 30,000. Those whose basic salary is 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 to get benefit? What will need to be done?
The best way for EPFO subscribers to avail this benefit is to continue with the same EPF account while changing jobs. For this you will have to give information to your old employer and present employer. Generally, it is advisable not to withdraw PF while working. Due to this, subscribers may suffer loss of retirement fund including income tax. Due to this they also lose pension benefits and loyalty.