As per recent information from PF department, employers are required to make aware employees the benefits of retaining the PF membership instead of withdrawing the accumulations prematurely.
Further, EPFO advises employers to be cautious while submitting withdrawal claims of employees. Sending their claims after completing the formality of waiting for 2 months when the same employees are working elsewhere in other companies can be tracked through UAN/Aadhar/Mobile Nos. etc. and may lead for legal complications for the employer as well as the employee. Rejoining of same employees in your establishment after submitting their PF withdrawal forms shall be subject to scrutiny.
Benefits of retention of membership with EPFO to employees
Employees' Provident Funds & Miscellaneous Provisions Act, 1952 provides for a compulsory contribution for the future of an employee after his retirement or for his dependents in case of his early death. A provident fund is created with a purpose of providing financial security and stability to employees.
However, this basic purpose of PF accumulation for old-age or retirement benefits is lost, when the entire accumulation is withdrawn on leaving/changing one’s job much prior to retirement. Therefore, it is always good to retain PF membership than to withdraw the entire amount prematurely.
The benefits of retention of membership in EPFO are many, such as:
• The act provides various provident fund advance withdrawals for the purpose of house construction, purchase of house, repayment of loan availed for house,
o marriage of self as well as dependents of member,
o post matriculation education of children,
o payment of life insurance premium and
o medical advance for hospitalization etc.
The procedure for advance withdrawals is made simple and easy
• The employee will earn interest on the PF accumulation. Income generated by the funds is tax exempt to certain extend.
• Under EDLI scheme 1971 for death while in service, amount upto Rs. 6 lakhs is payable to the family.
• Under Employees’ Pension Scheme 1995 with a minimum of 10 years contributory service after attaining age of 50 years members become eligible for pensionary benefit.
• The UAN number provided to all employees has facilitated the linking of previous accounts of the members in case of change of job automatically.
There are many more such benefits associated with PF membership. To enjoy the benefits of PF to the full extend, those employees, resigning or changing jobs, it is suggested to transfer the accumulation.
EMKAY CONSULTANCY SERVICES (ESTT 1985)
LABOUR LAW CONSULTANT.
104, Animesh Appartment, lohar ali,Station Road,
Near Karnavat Classes & Laxmi book depot,
Above SUN Enterprises,
Thane west 400602.
Call us- 022 25440636 / 022 25390466.
Cell No - 8655800550 / 9833043749.
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58Further, EPFO advises employers to be cautious while submitting withdrawal claims of employees. Sending their claims after completing the formality of waiting for 2 months when the same employees are working elsewhere in other companies can be tracked through UAN/Aadhar/Mobile Nos. etc. and may lead for legal complications for the employer as well as the employee. Rejoining of same employees in your establishment after submitting their PF withdrawal forms shall be subject to scrutiny.
Benefits of retention of membership with EPFO to employees
Employees' Provident Funds & Miscellaneous Provisions Act, 1952 provides for a compulsory contribution for the future of an employee after his retirement or for his dependents in case of his early death. A provident fund is created with a purpose of providing financial security and stability to employees.
However, this basic purpose of PF accumulation for old-age or retirement benefits is lost, when the entire accumulation is withdrawn on leaving/changing one’s job much prior to retirement. Therefore, it is always good to retain PF membership than to withdraw the entire amount prematurely.
The benefits of retention of membership in EPFO are many, such as:
• The act provides various provident fund advance withdrawals for the purpose of house construction, purchase of house, repayment of loan availed for house,
o marriage of self as well as dependents of member,
o post matriculation education of children,
o payment of life insurance premium and
o medical advance for hospitalization etc.
The procedure for advance withdrawals is made simple and easy
• The employee will earn interest on the PF accumulation. Income generated by the funds is tax exempt to certain extend.
• Under EDLI scheme 1971 for death while in service, amount upto Rs. 6 lakhs is payable to the family.
• Under Employees’ Pension Scheme 1995 with a minimum of 10 years contributory service after attaining age of 50 years members become eligible for pensionary benefit.
• The UAN number provided to all employees has facilitated the linking of previous accounts of the members in case of change of job automatically.
There are many more such benefits associated with PF membership. To enjoy the benefits of PF to the full extend, those employees, resigning or changing jobs, it is suggested to transfer the accumulation.
EMKAY CONSULTANCY SERVICES (ESTT 1985)
LABOUR LAW CONSULTANT.
104, Animesh Appartment, lohar ali,Station Road,
Near Karnavat Classes & Laxmi book depot,
Above SUN Enterprises,
Thane west 400602.
Call us- 022 25440636 / 022 25390466.
Cell No - 8655800550 / 9833043749.
Home
Our Google+ A/c
Like us on Facebook
From India, Thana
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