EPF with Life Insurance!
What is EPF?
EPF or Employee’s Provident Fund is a savings scheme available to all salaried employees residing in India. It is more of a retirement saving scheme that helps employee build a retirement fund by investing a fraction of their salary in the account every month which can later be used in the time of retirement. EPF is mandatory for individuals earning a salary up to Rs.6500. Those earning more than Rs.6500 can contribute to the fund voluntarily. The fund is maintained by EPFO (Employee provident Fund Organisation). Both the employer and the employee contribute to the employee’s fund.
Features of EPF
Listed below are some of the important features of an Employee Provident Fund
- It is available only to salaried employees
- A part of the employee’s salary is invested in the EPF account every month
- Employer’s contribution of 12% of basic salary is totally deposited in provident fund account whereas out of employee’s contribution of 12%, 3.67% is contributed to provident fund & 8.33% is deposited in Pension scheme.
- Employees also have the option of contributing more than 12% if they intend to
- The amount invested in an Employee Provident Fund is exempt from tax under Section 80C of the Income Tax Act.
- In EPF, the amount is paid at the time of retirement or resignation, whichever occurs earlier.
- The employee can check the amount invested in their EPF account online on the EPF India website with their Universal Account Number(UAN)
- Partial withdrawals allowed for specific expenses such as house construction, higher education, marriage, illness etc.
Employee’s Deposit Linked Insurance
An employee can avail life insurance cover under Employee’s Deposit Linked Insurance. All the cost related to this scheme will be paid for by the employer and the employee doesn’t have to make any contributions. The scheme used to offer a life cover up to Rs.60,000 before and as a result of low cover many employees opted out of the scheme. But EPFO later allowed Edelweiss Tokio Life-Group Life Protection which offered cover up to double the previous amount. Edelweiss Tokio Life-Group Life Protection offers a minimum sum assured of Rs.1,32,000 under this scheme. Every member of Employee Provident Fund Organisation is eligible for this scheme. The members don’t have to worry about claim settlement as the employer will be held responsible in case of failure of payment in case of death of the member.
- EPF Balance
- EPF Claim Status
- EPF Interest Rate
- How to Transfer PF Amount
- Provident Fund Rules
- SBI EPF
- Gratuity Calculator
- EPF Account Withdrawal Fraud
- EPF Money after Resignation
- EPF Life Insurance
- 7 Ways to Check PF Account Balance
- EPFO into Equities
- New EPF Withdrawal Form
- Unclaimed EPF Account
- EPFO Stock Market Investment
- How to Access UAN Account after Changing the Mobile Number
- How to Change EPF Nomination Online
- Claiming PF from Inactive EPF Accounts
- EPF vs EPS
- EPF Claim after the Death of a Subscriber
- EPF vs NPS
- EPF vs PPF
- GPF Amount Withdrawals
- Claim 100% EPF at 60 Years
- Breakup of EPF Contribution
- EPF Contribution in Basic Salary
- Centre Cracks Down on EPF
- Employee Deposit Linked Insurance Scheme
- EPF e-Passbook
- Employee Pension Scheme
- File an RTI for EPF Withdraw or Transfer