Little unknown facts about EPF (India)

Unlike civil servants, private sector employees do not receive pension benefits that fulfill various financial objectives upon retirement. The EPF scheme aims to help non-pensions and private sector employees save some of their monthly salary. It is used when employees temporarily work or retire after retirement. Approximately 95% of people understand that they assume that they fully recognize the work pattern. However, there are many facts about EPF that many people are not aware of.

So let's take it from here:

Candidates recognized under your EPF
Many people do not know that nominated facilities are provided by EPF. The EPF provides nominated facilities for each individual. Candidates created under the EPF will be contacted to deliver that amount during the dismissal of the EPF owner. It just needs to perform simple and basic steps " Form 2 This form is filled out to change or update candidate's information. To know the details, please contact the Finance Department or contact the nearest bank or post office. the amount.

You can receive pension at EPF
People do not know that there are two categories of EPS and EPF in the EPF. EPF will work as your provided fund and EPS will work as a pensioner. 12% to EPF, 8.33% out of 12% provided by employer will be sent to EPS and the rest will be sent to EPF. This constant share of your employer's share will build your pension under the EPF. However, there are rules that apply only in the following cases:

• Individuals are legally responsible for the pension and are 58 years old.
• We assume legal responsibility when individuals work for the same organization for ten years.
• The maximum amount of monthly annuity shall not exceed Rs. 3,250 per month
• At the time of death of an individual, family members or employees have the right to receive pensions.

You can volunteer more than the statutory limits of EPF
There is no mandate to invest a certain amount in your EPF. You can invest more than 12%. This facility is called VPF (volunteer fund fund). However, this provision is for your own improvement and the employer does not have to match the scale. There is no more than 12% contribution for them. By investing more of your basic salary, you get a profitable return.

I am not interested in your EPF pension
There is no provision that the EPF will be interested in your pension. However, we are entitled to receive both EPS and EPF upon withdrawal. If you misunderstand the same thing and believe it, we recommend you to read detailed pictures.

EPF does not provide 100% withdrawal
If you dream of some big chunks of money to get out when you withdraw from your EPF it is suggested that you will soon face the reality. In EPF there is a display of "TABLE D" which suggests how much we can receive at retirement. This table shows the slab for each year of service in relation to the ratio of wages at the time of retirement. By referring to this table, we will inform you of the amount to be received upon withdrawal.

I can not force to have an EPF
Yes ! ! You have heard really, there is no compulsion to join or leave the EPF. The option to opt-out the EPF is open, but there is no savings in retirement or emergency unless you invest in other places. If you do not want to participate in the EPF, you need to tell the Finance Department the same from the date of participation. There is a small "FORM 11" submission process that serves as a consent form telling you that you are no longer interested in the EPF.

You can not withdraw EPF when changing jobs
There is no withdrawal facility, but assignment is possible only when individuals change their work. Individuals can withdraw EPF funds only when they are not working at discharge. Legally, individuals can withdraw money only after the service period has exceeded 10 years.

EPF provides life insurance
This is another factor that people do not know the EPF that provides life insurance. However, the cost of the scheme, ie Employee Deposit Insurance (EDLI) will be borne by your employer. However, the coverage amount is almost Rs. Usually, employers opt out by offering other life insurance benefits to employees from this insurance scheme. The sad part about this scheme is that the life cover option does not satisfy it. People in small towns and small industries may want it.

Drawers before maturity are permitted
If you are still employed, withdrawal before maturity is not allowed. However, in rare cases, withdrawal such as illness, higher education, wedding ceremonies, mortgage re-payment, house construction etc. are permitted.

EPT shows the importance of daily savings. This will act as a strong financial pillar. This small amount stored during your employment period brings about a big difference in retirement age. This amount will be used by individuals who do not depend on anyone to finance their lives.