EPFO offers several benefits to the employee and many of them are really helpful in terms of future planning. If you are thinking about the benefits offered by EPFO to the employees then here are some of the unique benefits offered to the employees
Insurance–A lot of people are unaware about the fact that the EPF comes with an insurance of up to 6 Lakhs and if the PF contributor dies then the nominee or the survivor can claim this amount for the insurance. This certainly offers a lot of financial security to the family of the contributor or the employee.
Interest Without Tax– As you know that the interest earnings are taxable as per the income tax law but do you know that the interest earned on the Provident Fund is not taxable until you are in service? This is true, if you have been holding a PF account for a certain period then the interest earnings go untaxed and as a matter of fact, the rate of interest on PF is much higher than on any saving scheme.
Life Long Pension– All EPF Members also get a membership to Pension scheme and do you know that if you contribute for 10 years then you are automatically entitled to a pension till This is certainly helpful in planning for the future post-retirement.
Online Withdrawal and Transfer– EPFO also offers the facility of online transfers and online withdrawal to employees and this is helpful when the employee is trying to change a job or when the employee needs money for payment of house loans and marriage.
These are some of the benefits offered by EPFO to the employee which most of the people are not aware of and it is certainly good to know about these benefits.