Broadly we may categorise the benefits into three:
- Provident Fund benefits
- Employer also contributes to Members PF @ 3.67% (1.67% in case of sick industry - eg: beedi)
- EPFO guarantees the Employer contribution and Govt. gives a decent interest to PF accumulations
- Member can withdraw from this accumulations to cater financial exigencies in life - No need to refund unless misused
- On resignation, the member can settle the account. i.e., the member gets his PF contribution, Employer Contribution and Interest.
- Pension Benefits
- Pension to Member
- Pension to Family (on death of member)
- Scheme Certificate
- This Certificate shows the service & family details of a member
- This is issued if the member has not attained the age of 58 while leaving an establishment and he applies for this certificate
- Member can surrender this certificate while joining another establishment and the service stated in the certificate is added with the service he is gaining from the new establishment.
- After attaining the age of 50 or above, the member can apply for Pension by surrendering this scheme certificate (if total service is atleast 10 years)
- This is a better choice than Withdrawal Benefit, as a member dies holding a valid scheme certificate, his family will get pension (Death when NOT in service)
- Withdrawal Benefit
- if not eligible for pension, member may withdraw the amount accumulated in his pension account
- the calculation of this amount is based only on (i) Last average salary and (ii) Service (Not based on actual amount available in Pension Fund Account)
- No amount is taken from Member to give Pension to the Member. Employer and Govt. contributes to Pension fund @8.33% and @1.16% respectively
- EPFO guarantees pension to members, even if the Employer has not contributed to Pension Fund.
- Pension calculation is similar to that of Govt. Employee..
- Benefits on Account of Death of a EPF Member
- Provident Fund Amount to Family (or to Nominee)
- Pension to Family (or to Parent / Nominee)
- Capital Return of Pension
- Insurance (EDLI) amount to Family (or to Nominee)
- No amount is taken from Member for this facility. Employer contributes for this..
- Nominee is basically determined as per the information submitted by the member at this office through FOR