Actually, all EPF account holders are encouraged to continue contributing to the same EPF account even after changing jobs. With this, they can get the Loyalty-cum-Life benefit after contributing to the same account for 20 consecutive years.
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What measures has the central government taken?
An expert says that in the midst of the lockdown, on April 13, the CBDT recommended extending the Loyalty-cum-Life benefit to those account holders who have contributed to their EPF account for 20 years. The central government has approved this, which means that if someone is eligible for this, they will get a benefit of Rs 50,000.
Who can get how much benefit?
According to the information received, under the Loyalty and Life Insurance, people with a basic salary of up to Rs 5,000 will be able to get a benefit of Rs 30,000. Those whose basic salary is between Rs 5,001 and Rs 10,000 will be eligible for benefits of Rs 40,000. At the same time, if an employee’s monthly basic salary is more than Rs 10,000, he will get the benefit of Rs 50,000.
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What do I have to do to get the benefits?
The best way for EPFO subscribers to take advantage of this is to continue with the same EPF account even if they change jobs. To do this, you must provide information to your previous employer and current employer. It is generally recommended not to do PF withdrawals while working. Subscribers may suffer losses in the retirement fund, including income tax. Because of this they also lose pension and loyalty benefits.
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PUBLISHED FOR THE FIRST TIME : May 12, 2020, 10:15 AM IST