Contribution More than 12% of Basic Salary Towards EPF

Benefits of having an EPF Account

The benefits of having an EPF account are as follows:

1. Money will be accumulated till your retirement, resignation or death. You will also earn interest on the accumulated amount and you will also be eligible for the bonus.
2. Partial withdrawal is allowed for meeting the expenses such as house construction higher education, marriage, illness, etc.
3. It is the most tax-friendly tool that helps you build retirement corpus.
4. If you withdraw the amount after working for 5 consecutive years, the amount will be totally exempt from tax under Section 80C of the Income Tax Act.
5. The rate of interest for the financial year 2023-2024 has been declared at 8.25%.
6. EPFO has decided to make all the payments to beneficiaries through the electronic modes.
7. You can avail the Life Insurance cover, EDLI under EPF.
8. To channelize the savings, SEBI and top stock exchanges have requested the new Central Government to allow a portion of the corpus in equities and mutual funds.
9. SEBI has also suggested to invest the Rs.5.5 lakh crore managed by EPFO in equities and mutual fund.
10. Bombay Stock Exchange has requested that the EPF money be assessed to both the primary and secondary markets.
11. The SEBI and BSE investment will generate higher returns for the retired.