Understanding the New EPF & PF Systems: What Are the Pros and Cons for Your Team?

I just want to know the pros and cons of the new EPF & PF systems. I want to explain this to my employees because I don't have that much idea on this.

I can help you understand the advantages and disadvantages of the new EPF and PF systems so that you can effectively communicate this information to your employees. Let me know if you need any assistance with this.

Benefits of EPF (Employee Provident Fund)

The EPF amount from both the employee (EE) and employer (ER) will be repaid upon completion of the service period along with the interest. Any claims of EPF will not attract Income Tax, provided there is a minimum of 5 years of contribution. Any amount that is fully claimed before 5 years will have a 10% TDS.

EPF amounts can be claimed partially under the following conditions:

- Marriage Expenditure
- Educational Expenditure
- Medical Emergencies
- Purchase or Construction of a House
- Repayment of a Housing Loan
- Purchase of a Plot
- Lockout

Benefits of EPS (Employee Pension Scheme)

All employees who contribute to EPF for 10 years or more will receive a monthly pension amount. If an employee does not complete the 10 years of service, the amount shall be withdrawn along with the EPF amount.

Benefits of EDLI (Employee Depository Linked Insurance)

For all EPF members, the company must pay an insurance amount of 0.5% of the EPF wages, calculated under the admin charges. The EDLI amount will be paid upon the death of an employee who is in service. The total insurance amount that can be claimed is Rs. 6,00,000/-.

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