Top First Advisor by PF Consultant in Ahmedabad

Let us know about the main advantages you get now that we are aware of who makes what contributions to your PF account. Best ESI PF Consultant in Ahmedabad by Connect 2 Payroll Contractor in India.

   High Interest: The interest rate you receive on your EPF balance ranges from 8 to 9%. In India, the interest rate at the moment is 8.65%. Your retirement planning is facilitated by this high interest rate.

Tax Exemption: Your Employee Provident Fund (EPF) is classified as an EEE (Exempt Exempt Exempt) plan. That is to say, there is no income tax applied to the money you deposit in the EPF, the interest you receive, or the money you withdraw.

Note: You will not receive a tax exemption if you take out funds for emergencies (which we will discuss) before the designated five-year term.

    Low Risk: Investing in EPF carries a very low risk. Thus, it provides you with a secure investment alternative together with the benefit of government support.

 EPF serves as both life insurance and health insurance. Should an employee pass away, the corpus is awarded to the departed employee's family.

Easy-to-use: You only need to create an EPF account once, and it may subsequently be moved to any future employers because of the UAN, a 12-digit unique number provided to all PF members. Getting into an EPF account is really simple.

Many advantages, but what if you want to use your EPF funds immediately? Now, let's discuss that:

Top ESI PF Consultant in Ahmedabad by Connect 2 Payroll Contractor in India. First things first: you shouldn't take out your EPF balance carelessly; it is intended to be used after you retire.

There are certain guidelines related to withdrawal in order to fulfill this purpose:

    If you have chosen self-employment or have been jobless for longer than two months, you are eligible to withdraw 100% of your money. The latter requires a gazetted officer's certification.

    75% of your EPF can be withdrawn during a month-long unemployed.

    100% of the funds in your EPS and EPF accounts are yours to take out when you retire (at age 58).

    90% of them are withdrawable at age 57.

    Apart from that, the money may only be taken out in an emergency, like

    Emergency medical care

    Repayment of a home loan

    Remodeling of the home

    Purchasing a home or piece of land

    Education against marriage (self-, sibling-, or child-marriage)

*After five years of service, you can access all of the aforementioned emergency withdrawals, up to a certain proportion of your EPF balance.

The EPFO lifelong loyalty bonus

Members of the Employee Provident Fund (EPF) who have made contributions for over 20 years may not be aware of an additional benefit provided by the EPFO. Longtime donors earn an extra INR 50,000 incentive after retirement, which is known as the loyalty-cum-life bonus.

Moreover, this award is also available to members who have contributed for less than 20 years and are permanently incapacitated. Put another way, individuals who have made contributions to the EDLI system for fewer than 20 years but whose total number of years of contributions is less than 20 because of a permanent handicap are eligible for the bonus.