Provident Fund Benefits for Retired Employee

Posted by Baddham Bhaskar on November 27th, 2018

Employee Provident Fund (EPF) is a pension scheme run by the Government of India. Through the EPF, members are able to enjoy quite a number of benefits regardless of whether you are working in the private or public sector. All one has to do is make monthly contributions after which you can access the money once you retire or are rendered jobless. In this article, we are going to have an insight on the different benefits that a retired employee can enjoy after saving money with EPF.

Financial Security

By being a member of the EPF, you will never have to worry about mismanaging your funds. This is mainly because your monthly contributions are safe and sound in your EPF account. Through this action, one is able to plan for the future even when you are running on a low budget.

Interest

Every member of the EPF earns interest on the money that they have saved with the Employee Provident Fund. In addition to this, you will never have to worry about taxes on your monthly contributions since they are tax free. Once your money matures after retiring, you can withdraw the savings without the government deducting any tax. This is however quite the opposite when you decide to make a premature withdrawal since there are some deductions that will be made.

Insurance Benefits

Having an insurance cover is very important since it will protect you whenever there is any problem. For this reason, members of EPF who do not have an insurance cover are required to contribute 0.5% of their basic salary towards life insurance. By doing so, your family will be given a certain amount if you happen to die before the EPF account matures. Through this insurance, your family is able to get some savings even after losing the main breadwinner.

Ease of Access

Every member of the EPF has to link their Aadhaar Card to UAN Number. By linking these two cards, it becomes very easy to transfer your EPF accounts even when you decide to change the place of employment. Initially, members of the EPF had to make do with a lot of paperwork before finally transferring their accounts. However, by Linking UAN Number to Aadhaar card by using UAN Login into unifiedportal-mem.epfindia.gov.in website, you will only have to submit Form 11 before getting access to your new account.

Extra Special Benefits

Members of EPF can get access to extra special benefits provided by this scheme at any time that they have an emergency. These funds are given by the EPF to cater for medical bills, Education purposes and housing just to mention but a few. To get any of these benefits, you will have to make an application and submit the form to any concerned office.

With all the benefits that come with being a member of EPF, you will never have to worry about your future. This is simply because you have the necessary finances that will cover all your bills once you retire.