Authored by : ET Now Digital Updated May 2, 2024 | 09:39 PM IST Photo : Shutterstock.com EPFO will REWARD you with Rs 50,000 BONUS if...
Under this provision, EPF account holders stand to gain a significant benefit of up to Rs 50,000, provided they meet a specific condition.
Subsequently, the central government approved this program, extending the additional benefit of Rs 50,000 to eligible subscribers.
Those with a basic salary of up to Rs 5,000 are entitled to a benefit of Rs 30,000, while individuals earning between Rs 5,001 and Rs 10,000 receive Rs 40,000.
Those with a basic salary exceeding Rs 10,000 are eligible for the maximum benefit of Rs 50,000 under this scheme.
Authored by : ET Now Digital Updated May 2, 2024 | 09:39 PM IST Photo : Shutterstock.com EPFO will REWARD you with Rs 50,000 BONUS if...
The Employees' Provident Fund Organisation ( EPFO ) serves as a vital platform for securing the financial futures of employees across India, offering a structured retirement savings plan for long-term financial stability post-employment. Despite its importance, many subscribers are unaware of certain EPFO rules, including the loyalty-cum-life benefits provision.
Under this provision, EPF account holders stand to gain a significant benefit of up to Rs 50,000, provided they meet a specific condition. To qualify for this benefit, individuals must maintain continuous contributions to the same EPF account for a period of 20 consecutive years.
The loyalty-cum-life benefit initiative was recommended by the Central Board of Direct Taxes (CBDT) with the aim of rewarding EPF subscribers who demonstrate unwavering commitment by consistently contributing to their accounts for two decades. Subsequently, the central government approved this program, extending the additional benefit of Rs 50,000 to eligible subscribers.
Eligibility for the benefit is based on the individual's basic salary bracket. Those with a basic salary of up to Rs 5,000 are entitled to a benefit of Rs 30,000, while individuals earning between Rs 5,001 and Rs 10,000 receive Rs 40,000. Those with a basic salary exceeding Rs 10,000 are eligible for the maximum benefit of Rs 50,000 under this scheme.
To avail of this benefit, EPFO subscribers must ensure the continuity of their contributions to the same EPF account, even when changing jobs. This necessitates informing both the previous and current employers about the decision to retain the existing EPF account, ensuring seamless continuity of contributions.
EPFO subscribers can maximize their retirement benefits and capitalize on the loyalty-cum-life benefit offered by the organization.
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