Benefits of Employee under EPF Account

by Mecof King Halleluya

Numerous benefits are set to come your way if you decide to register yourself as a member of the Employees Provident Fund. This pension scheme run by the Government of India is mainly designed to cater for the old age needs of all member employees whether in the private or public sector. Some people see this scheme as a way of cutting down your wages. However, this is quite the opposite since these savings will be used during old age or when one is rendered jobless. In this article, we are going to look into the advantages that employees get when saving with EPF UAN Login.

● Interest

An employee is guaranteed a certain percentage of interest on the funds which are saved in your EPF account. Furthermore, this amount is tax free meaning you do not have to worry about deductions that may be made on your monthly savings. Once your account matures, you can also withdraw the amount without having to pay any tax unless you have made a premature withdrawal. With this benefit, you no longer have to worry about losing your money or getting unnecessary deductions without any warning.

● Ease of Access

With an employees’ Aadhaar Card linked to their UAN number, it becomes easier to transfer your accounts if you decide to change the place of employment. Initially, you had to undertake a lot of paperwork before you could transfer your account after switching your job. But by linking your Aadhaar card to your UAN number you only have to submit the new form 11 that was introduced by EPFO in 2017. Once this is done, your account will automatically be transferred without having to submit additional details.

● Extra Special Benefits

Apart from the normal tax savings and financial security benefits that you get as a member of EPFO, you can still get additional special benefits that can be accessed when needed. These funds can be accessed for housing, medical, marriage and education purposes. You can also use them in case of death or loss of income.

● Financial Security

With the EPF account, you will not worry about mismanagement of funds since all your savings will be secured in your account until it matures. This benefit mostly suites those individuals who are known to mismanage their funds in ruthless spending.

● Pension Benefits

Members of EPFO are guaranteed pension benefits in case you lose a family member. Furthermore, your family will be able to get the pension if you die before your account matures.

● Insurance Benefits

Any member of EPFO who does not have insurance will have to contribute 0.5% of their basic monthly salary towards life insurance. This ensures that your family receives a certain amount if you die before retiring.

With all these benefits that come with being a member of EPF, you will not have to worry about your future since it is fully secured. It is therefore advisable that you join the Employees Provident Fund if you are to enjoy your retirement without facing any ups and downs.