In India, the Employees' Provident Fund Organization, or EPFO, is crucial to safeguarding workers' financial futures. It provides subscribers with a methodical retirement savings plan that guarantees stability in their finances beyond employment.
However, there are certain EPFO regulations that most subscribers are hardly aware of. Loyalty plus life benefits is one of these guidelines. The employee receives a direct benefit of up to Rs. 50,000 if the subscriber fulfills a certain simple condition.
Even after changing jobs, it is advised that all PF account holders keep making contributions to the same EPF account. As a result, following 20 years of contributions to the same account, they are eligible for loyalty-cum-life benefits.
What perks does this program offer you?
CBDT suggested that account holders who have made consistent contributions to their EPF account for 20 years be granted the loyalty-cum-life benefit. This program was approved by the central government recently. Subscribers who have contributed consistently for 20 years will receive an extra up to Rs 50,000 in benefits.
Who is eligible for the benefit?
People who receive a basic salary of up to Rs 5,000 are eligible for a benefit of Rs 30,000 under the loyalty-cum-life benefit. A benefit of Rs 40,000 will be given to those whose basic salary falls between Rs 5,001 and Rs 10,000; a benefit of Rs 50,000 will be given to those whose basic salary exceeds Rs 10,000.
How can you receive the benefit?
The best approach for EPFO subscribers to take advantage of this benefit is to keep their EPF account open even after changing jobs. You will need to provide information to both your current and former employers for this.
