Benefits of PF Account
Employee Provident Fund is like an investment for any employee working in a government or private sector. According to the rule of Employee Provident Fund, the company having more than 20 employees must be registered in EPFO and they must deduct the PF of employees on regular basis.
The Employees Provident Fund Organization (EPFO) has reduced the interest rate for the year 2017-18 to a 5-year low of 8.55%, but it’s not attractive enough. Rather, it has become more important for us to know the benefits that we get on PF account and we don’t get any deductions for the same. Now we will discuss more of these benefits.
The Advantage of Provident Fund Account
1- Now you will also get the interest rate on inactive accounts. That is, if your PF account is inactive for more than 3 years, you will still get much interest. In 2016, the EPFO has changed its old decision. If your PF account was inactive for more than 3 years before 2016, you would not get the interest rate on your PF’s money.
Financial Experts believe that even if you are getting the interest rate on inactive accounts, they should get transferred or withdrawn in an active PF account. According to the existing rules, if the account remains inactive for more than five years, it will be charged with to withdraw money.
Once PF account opens, you also get an insurance by default. Under the Employees Deposit Linked Insurance (EDLI) scheme, your PF account gets benefits up to Rs. 6 lakh.
You can link all your PF accounts to UAN number generated through official website of EPFO. Transfer of PF money on job change has now become much easier than before.
To join the new job, there is no need to fill the Form-13 separately to claim EPF’s money. EPFO has introduced a new Form 11, which is used at the place of Form 13. It is used in all cases of auto transfer.