Benefits Under EPFDr. G C Mohanta, BE(Mech), MSc(Engg), MBA, PhD(Mgt) Professor
Major Benefits Under EPFProvident Fund BenefitsPension BenefitsDeath Benefits
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
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
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
3. Death BenefitsProvident Fund Amount to Family (or to Nominee)Pension to Family (or to Nominee)Capital Return of PensionInsurance (EDLI) amount to Family (or to Nominee)No amount is taken from Member for this facility, employer contributes for thisNominee is nominated by the member through declaration at his office
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
How to withdraw money from EPFYou can withdraw total money from EPF Account, when you resign or retire & apply for settlement of PFYou can withdraw partially or get partial advance for some admissible purposes during your service
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
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
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
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
Advances/ Withdrawals from EPF for following purposes :MarriageEducationMedical TreatmentPurchase or construction of Dwelling houseRepayment of Housing LoanPurchase of PlotAddition/Alteration of HouseRepair of HouseLockout in companyWithdrawal Prior to RetirementOther Advances
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