The Employees’ Provident Fund Organization, usually abbreviated as EPFO, is well known for being in retirement security under the Employees’ Provident Fund (EPF) and Employees’ Pension Scheme (EPS). Nonetheless, EPFO also provides some lesser-known benefits for times of need, including medical emergencies, unemployment, or even a joyful occasion. These benefits often go unclaimed and can be a major source of assistance in times of financial distress for members. This article delves into those benefits and examines how EPFO plays a role in alleviating the concerns of working-class employees even after retirement.
Major EPFO Benefits Besides Pension
1. Advance Withdrawals for Necessary Critical Expenses
There are provisions for members to withdraw some money under the EPFO through an advance withdrawal for necessary critical needs from the members’ EPF accounts without forcing the members to be exited from the scheme. Some of these needs are:
- Medical Expenses: Treatment of serious illness can be withdrawn for the member, spouse, children, and parents.
- Marriage: No more than 50% of the member’s contribution can be withdrawn for marriage of self, sister, or children, up to three times in a career.
- Education: Withdrawals may be made for higher education down the line for the member’s children.
- Home Ownership: Members may withdraw up to 90% of their EPF balances for purchasing or constructing a house or for repayment of home loans, subject to having done a minimum of five years of service.
2. Unemployment Support
For jobless members, an EPF withdrawal of up to 75% of the accumulated EPF balance is permitted by the EPFO after the unemployed have been out of a job for one month, while the remaining 25% will be available after two months, thereby providing a sort of financial cushion during job changes.
3. Insurance Coverage under EDLI
The Employee Deposit Linked Insurance responds with life insurance, where the employer contributes 0.5% of salary subject to the ceiling of ₹15,000. Member family members receive up to ₹7 lakh based on average EPF balance calculations done for the preceding 12 months of service if the member passes away in service.
4. Pension for Disability
Under EPS, members who suffer permanent disability while in service get monthly pension irrespective of whether they have completed 10 years of service awarded as a mandatory condition and support during unforeseen circumstances.
Also Read:EPS-95 Pension Scheme Update: RS 2,420 Monthly Pension Plus 17% DA Approved