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You Can Avail Benefits From These Social Security Schemes Offered By EPFO
In India, businesses with 20 or more employees are obliged by law to register with EPFO (Employees' Provident Fund Organisation), which administers three separate social security programs. The EPFO's schemes are available to both Indian and international workers. However, for international workers, it is available with whom the EPFO has bilateral agreements. Here, we have highlighted 3 social security schemes offered by the EPFO to the employees:
Employees' Pension Scheme (EPS)
Employees in the organized sector are eligible for a pension once they retire at the age of 58 years under the system. However, the scheme's benefits are only available if the employee has worked for the company for at least 10 years. Both the employer and the employee each contribute 12% of the employee's wage to the EPF. For employees who have joined their service before 1 September 2014, 8.33% of the employer's contribution goes to EPS, and the rest 3.67% is contributed to EPF. For employees joining from 1 September 2014, EPS is available to employees receiving a monthly salary up to 15,000 for 30 days.
Employees' Provident Fund (EPF)
EPF is one of the largest and main social security in the that offered by the EPFO in terms of clientele and financial activities. It now manages 24.77 Cr accounts for its members (Annual Report 2019-20). As mentioned above, the Employer's contribution to the extent of 3.67% of the EPS benefits goes to EPF. For the rest of the employees, the entire 12% contribution goes to EPF. The current interest rate on EPF deposits is 8.50 percent per annum. EPF members may log in to their accounts online and undertake tasks such as making withdrawals and monitoring their balance. Logging onto the EPFO member site is made easier using the Universal Account Number (UAN). Your company can provide you with a UAN. If you are unable to do so, you may quickly locate the UAN by logging into the UAN site with your member ID.
Employees' Deposit Linked Insurance Scheme (EDLI)
It is insurance scheme linked to EPF, and comes as default. 0.5% of the employer contribution goes to EDLI as a premium of the insurance scheme. If no other group insurance program exists, the maximum monthly contribution is Rs. 15,000. During the COVID-19 Pandemic, w.e.f 28 April 2021, both, the maximum insurance cover and bonus have been increased respectively. The maximum insurance cover increased to 7 lakh from 6 lakh earlier, while the premium insurance cover continues to be Rs 2.5 lakh. The bonus has been enhanced to Rs.2.5 lakh from Rs 1,50,000. If the insured employee happens to die in service, the sum insured is paid to the registered nominee of the deceased employee.
