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
From India, Bangalore
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From India, Bangalore
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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 If an employee does not complete the 10 years of service, the amount shall be withdrawn along with the EPF amount.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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From India, Bangalore
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653The 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 If an employee does not complete the 10 years of service, the amount shall be withdrawn along with the EPF amount.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/-.
Regards
From India, Bangalore
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Comparitive analysis of old and amended provisions- PF, EPF and EDLI.pdf
Employee Benefits.doc