Benefits under EPF


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Benefits under EPF

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  • Benefits under EPF

    1. 1. Benefits Under EPFDr. G C Mohanta, BE(Mech), MSc(Engg), MBA, PhD(Mgt) Professor
    2. 2. Major Benefits Under EPFProvident Fund BenefitsPension BenefitsDeath Benefits
    3. 3. 1. Provident Fund benefits Employer & employee contributes to employee’s PF @ 12% each ( 10% in case of sick industrial co. EPFO guarantees Employer’s contribution and credits interest Member can withdraw from these accumulations to cater to financial exigencies On resignation, the member gets back his PF contribution, Employer Contribution and Interest
    4. 4. 2. Pension Benefits1. Pension to Member2. Pension to Family (on death of member)3. Pension Scheme Certificate After attaining the age of 50 or above, the member can apply for Pension by surrendering the Certificate
    5. 5. Pension Benefits4. Withdrawal Benefit If not eligible for pension, member can withdraw the amount accumulated in his pension account5. No amount is taken from Member to give Pension to the Member Employer and Govt. contributes to Pension fund @8.33% and @1.16% respectively6. EPFO guarantees pension to members, even if the Employer has not contributed to Pension Fund
    6. 6. 3. Death BenefitsProvident Fund Amount to Family (or to Nominee)Pension to Family (or to Nominee)Capital Return of PensionInsurance (EDLI) amount to Family (or to Nominee)No amount is taken from Member for this facility, employer contributes for thisNominee is nominated by the member through declaration at his office
    7. 7. How to become EPF Member To become EPF member, you have to work in an establishment which is covered under EPF If 20 or more employees are working in the establishment, EPFO will cover that establishment If Employer and Employees desires, an establishment can opt for EPF coverage with employees less than 20
    8. 8. How to withdraw money from EPFYou can withdraw total money from EPF Account, when you resign or retire & apply for settlement of PFYou can withdraw partially or get partial advance for some admissible purposes during your service
    9. 9. How to get Pension If you have attained the age of 50 years or more Completed a total service of 10 years or more Not getting any other EPF Pension You have to apply to the EPF Office through your last employer for Pension
    10. 10. When You Can Apply for Pension1. On superannuation- At 58 years’ age or more and atleast ten years of service2. Before superannuation- Age between 50 and 58 years and at least ten years of service,- Member should not be in service3. Death of the member, while in service or Death while not in service4. Permanent disabilityNo pensioner can receive more than one EPF Pension
    11. 11. How to settle EPF account• When you resign or retire from an establishment and apply for settlement of PF• If the member dies, Family members/Nominee have to apply for settlement of PF
    12. 12. Employees Deposit Linked Insurance (EDLI) • On death of a member, the Family Members or Nominee can claim for EDLI Benefit • Maximum amount payable is Rs. 60,000/- • The nominee(s) have to apply through the Employer • No amount is taken from the Member for this facility • Employer contributes for this • Average PF Balance, salary and service are the factors considered for the calculation of this amount
    13. 13. Advances/ Withdrawals from EPF for following purposes :MarriageEducationMedical TreatmentPurchase or construction of Dwelling houseRepayment of Housing LoanPurchase of PlotAddition/Alteration of HouseRepair of HouseLockout in companyWithdrawal Prior to RetirementOther Advances
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