EPFO's retirement fund EPF apart from a reasonable return provides a handful of other benefits which most of the subscribers are not aware of such as the EDLI scheme that offers insurance up to Rs. 6 lakh, pension etc. Also, there is another lesser known benefit extended by the organization called as loyalty-cum-life benefit.
As part of this benefit, for continuous contribution to the EPF account for at least 20 years, the subscriber in addition to other benefits will be entitled to receive a sum of up to Rs. 50000 at the time of retirement.
So, to avail of this monetary incentive, you as an employed individual should continue with the same EPF account even if you change jobs and satisfy the minimum 20 years criteria. For this you would need to know your current employer or new employer as may be the case that you wish to continue with the same EPF account.
Further, as per the scheme which is granted by the government, the benefit amount payable under it is based on the basic monthly salary of the employee:
So, those with basic salary of up to Rs. 5000 per month will receive benefit amount of Rs. 30,000 while those with basic salary ranging between Rs 5001 to Rs. 10000 will get Rs. 40000 and those with a salary of above Rs. 10000 will get Rs. 50,000.
"The CBT had sent its recommendation on 13th April during lockdown recommending loyalty-cum-life benefit to the EPF account holders who have been continuously contributing in their account for at least 20 years. Now, this has been approved by the central government, which means EPF account holders who have been meeting the condition of 20 years are now eligible for up to Rs 50,000 benefit, which is exclusive from other EPF benefits", said SEBI registered tax and investment expert while talking on the approval of loyalty-cum-life benefit.