<p>Employees may benefit from a comprehensive plan offered by the Employees Provident Fund Organization (EPFO) in several ways. In addition to earning better interest rates on their savings than Fixed Deposits (FD), account holders also benefit from the security guarantee provided by the government. The programme also offers free life insurance coverage of lakhs of rupees. Employees in the private sector are required to open a Provident Fund account (PF Account), with a predetermined amount withheld from their monthly pay and set aside for unforeseen expenses. Employers contribute to this account as well. The Employees’ Deposit Linked Insurance (EDLI) plan, the Pension plan 1995 (EPS), and the EPF Scheme 1952 are all three concurrent programs that are managed by the EPFO.<img decoding=”async” class=”alignnone wp-image-292035″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/11/theindiaprint.com-epfo-offers-various-benefits-to-account-holders-from-free-insurance-to-higher-inte.jpg” alt=”theindiaprint.com epfo offers various benefits to account holders from free insurance to higher inte” width=”1251″ height=”937″ title=”EPFO Offers Various Benefits To Account Holders, From Free Insurance To Higher Interest 3″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/11/theindiaprint.com-epfo-offers-various-benefits-to-account-holders-from-free-insurance-to-higher-inte.jpg 259w, https://www.theindiaprint.com/wp-content/uploads/2023/11/theindiaprint.com-epfo-offers-various-benefits-to-account-holders-from-free-insurance-to-higher-inte-150×112.jpg 150w” sizes=”(max-width: 1251px) 100vw, 1251px” /></p>
<p>Under the EDLI plan, all workers who create an account with EPFO are eligible for benefits. On the PF account, this policy offers term insurance for up to Rs 7 lakh. In the tragic case of an employee’s death, the family is entitled to insurance compensation of Rs 7 lakh. Crucially, employers are the ones who start investing in the EDLI program so that workers may profit from it, even while employees contribute in EPS and PF accounts.</p>
<p>This programme was introduced by the EPFO in 1976 and included all enterprises within its purview. If an employee chooses an insurance plan with a greater coverage level, they may choose to opt out of the scheme; if not, they can still benefit from both plans. Employers contribute 0.5 percent of the employee’s basic and DA pay as a premium as part of the programme; the maximum contribution per employer is around Rs 75. It is important to stress that the advantages of the program are dependent on continuing work and active EPF (Employees Provident Fund) participation.</p>
<p>Under the EDLI system, EPFO provides insurance coverage up to 35 times an employee’s income. It is noteworthy to emphasize that the highest monthly pay taken into account for this computation is Rs 15,000 only. Thus, under this program, an eligible employee might get Rs 5.25 lakh from EPFO. Additionally, the organization offers a bonus of around Rs 1.75 lakh on top. The project provides insurance coverage of Rs 7 lakh.</p>
<p>In comparison to Fixed savings (FD), workers who create PF accounts get greater interest rates on their savings in addition to insurance coverage. For instance, the biggest government bank, SBI, provides an average interest rate of 7% on a 5-year fixed deposit. A PF account, on the other hand, offers an interest rate of 8.15 percent, with the potential to reach 9 percent in the past.</p>
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EPFO Offers Various Benefits To Account Holders, From Free Insurance To Higher Interest
