EPFO Update: The Employee Provident Fund is considered a grand savings scheme. Under this scheme, PF employees are guaranteed financial security after retirement. To collect a large fund in EPF, you must understand some essential things. Do you know that PF employees can create a fund of up to Rs 2.5 crore in EPF?
You may be surprised to learn this, but it is 100% true. The EPF scheme was started through the Act of 1952, the EDLI Act of 1976, and the Pension Scheme Act of 1995. Under this scheme, the employee and the company invest 12-12 per cent in EPF.
This amount is deducted from the salary of PF account holders. Most importantly, the government also pays interest to EPF scheme holders every year. On retirement, the entire amount of the PF account is received in a lump sum from EPF, which also includes the interest issued by the government.
A salary of Rs 50,000 will create a fund of Rs 2.5 crore
PF account holders will quickly get a fund of Rs 2.5 crore. For this, the wages of the PF employee plus essentials must be Rs 50,000. The employee will need to work for a minimum of 30 years. Getting a minimum interest of 8.1 per cent annually on the PF fund is also necessary. In addition, the company must increase the employee’s salary by 5per cent annually. After implementing all these measures, a fund of Rs 2.5 crore will be created for retirement. Employees can withdraw this money.
Eligibility to become an EPFO member
Some necessary conditions have been set for opening a PF account in EPFO. For this, first of all, having a job in an institution is required. For this, having a company with more than 20 employees is very important. Being a member of EPFO benefits savings, insurance cover, pension and free interest.
In case of emergency, you can also withdraw the deposited money from the fund and use it. Employees who have a PF account also get the benefit of insurance by default. Under EDLI, the PF employee also has insurance up to Rs 6 lakh.
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