Eligibility:-
- All states in India can benefit from the provisions of the EPF scheme.
- EPF account registration is mandatory for salaried employees with an income of up to ₹ 15,000.
- Employees with a salary of more than ₹ 15,000 may register for an EPF account subject to approval from the Assistant PF Commissioner.
- Organisations with more than 20 employees must register for the EPF scheme between the ages of 18 to 54 years.
- Organisations with less than twenty employees may join the EPF scheme voluntarily.
- Employees are entitled to receive a variety of employee provident fund benefits, including insurance benefits and pension benefits, after they become active members of the EPF program.
Benefits for Employer
- Helps to take benefits of employment generation subsidy.
- Helps to maintain expense in business.
- Relief from interest when payment done before due date.
- Offering EPF to employees can make a company more attractive to potential candidates.
- Employers are required to comply with EPF regulations, which can help ensure a fair and transparent work environment.
- To avoid legal problems.
- To facilitates business transactions.
- Protects their employees’ financial interests.
Benefits for Employees
- Retirement savings benefits for long term employees.
- Tax advantages under section 80C of income tax.
- Provide financial security and guaranteed returns on investment.
- Partial withdrawl in emergencies like illness, marriage, education & construction.
- Receive a lump sum of their contributions, employer contributions, and accumulated interest when they retire.
- Provide eligibility for free Employees Deposit Linked Insurance (EFLI) scheme coverage of up to Rs. 7 lakhs
- Employees also take out loans against their EPF balance for emergencies, with a minimal interest rate of 1% per year and must be repaid within three years.
- Effectively doubling the retirement savings.
- Offers a competitive interest rate that helps savings grow faster.
- EPF members can take non-refundable advances during their service period.
- EPF members receive a final settlement on retirement or two months after they stop being an employee.
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