Advantages of EPF and EPS
Advantages of EPF and EPS, The Employees’ Provident Fund (EPF) and Employees’ Pension Scheme (EPS) are social security schemes designed to provide financial security to employees during retirement or in the event of their unfortunate demise.
These schemes offer several benefits, including:
Retirement benefits:
Upon retirement, employees receive a corpus of funds accumulated through regular contributions made by both the employer and the employee throughout their working years.
Pension benefits:
The EPS provides a monthly pension to employees who have completed a minimum of 10 years of service. The pension amount is determined based on the employee’s salary and length of service.
Disability benefits:
In the case of disability, the EPF and EPS offer financial assistance to the employee, ensuring support during challenging times.
Death benefits:
In the event of the employee’s untimely death, the EPF and EPS provide financial assistance to the employee’s family, helping them cope with the loss.
Tax benefits:
Contributions made by employees and employers towards the EPF and EPS are eligible for tax benefits under Section 80C of the Income Tax Act, reducing the overall tax liability.
Long-term savings:
These schemes promote long-term savings, allowing employees to build a substantial corpus that can be utilize during their retirement years.
Portability:
The EPF and EPS are portable, enabling employees to transfer their accounts to a new employer when changing jobs. This facilitates the uninterrupted growth of their retirement funds.
Advantages of EPF and EPS:
Overall, the EPF and EPS play a crucial role in ensuring financial stability and security for employees, fostering a sense of well-being during their retirement phase.
To visit:https://www.epfindia.gov.in/
