I Just Want To Know Pros And Cons Of New EPF & PF Syestems

Akshatha Shenoy
I just want to know pros and cons of New EPF & PF syestems .I want to explain this to my employees .Because i dont have that much idea on this
jeevarathnam
Hi

Benefits

EPF (Employee Provident Fund)

EPF amount of both EE & ER will be repaid on completion of the service period along with the interest. Any claims of EPF will not attract Income Tax which has minimum of 5 years of contribution. Any amount which was claimed fully before 5 years will have 10% TDS.

EPF amount shall be claimed partially against following conditions

 Marriage Expenditure

 Educational Expenditure

 Medical emergencies

 Purchase or construction of house

 Repayment of housing loan

 Purchase of plot

 Lockout

EPS (Employee Pension Scheme)

All the employees who complete the contribution of the EPF for 10 years or more will receive monthly pension amount. If any employee is not completing the 10 years of service then the amount shall be withdrawn along with the EPF amount.

EDLI (Employee Depository Linked Insurance)

For all the EPF members company has to pay Insurance amount of 0.5% of the EPF wages. It is calculated under the admin charges. EDLI amount will be paid on death of the employee who is in service.

To total Insurance amount shall be claimed is Rs. 6,00,000/-
rakesh_bhagat26@rediffmail.com
Dear jeevarathnam,
i have a little confusion so please help me out so where an employee/family/dependants can claim for EDLI Insurance amount.
sarisri7@gmail.com
Mr. Bhagat,
Yes, the family member / any nominee other than family member (if employee is not married) can claim EDLI on the event of death of the employee only.
sarisri
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