EPFO: Do Not Withdraw PF Money Immediately After Changing Job
Many people withdraw their entire EPFO money after changing jobs. Very few people know that withdrawing the full amount of PF account can be a loss-making deal for you.
New Delhi. It is often seen that many people withdraw their entire Employees Provident Fund Organization (EPFO) money after changing jobs. Very few people know that withdrawing the full amount of PF account can be a loss-making deal for you. This eliminates the huge savings you are making for your future. Doing so does not result in continuity of pension. To take advantage of PF, by joining a new company, PF should be added to the old one.
This facility is available even after leaving the job
Experts say that if the employees leave the job or due to some reason they are fired from the job. In such a situation, many people should leave their PF for a few years. Money should not be withdrawn immediately when it is not needed. Very few people know that even after leaving the job, interest is earned on PF. He can be transferred to a new company as soon as he gets a new job.
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Transaction required in 36 months
PF account interest is available for 3 years after leaving the job. If there is no transaction for 36 months, then the PF account of the employee was put in the category of Inoperative Account. In such a situation, some amount can be withdrawn to keep your account active. By doing this, your PF account can avoid going into the inactive category.
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Benefits of free insurance
After the person gets a job, his PF account is opened. As soon as the PF account of the employee is opened, then he also becomes insured by default. Under the Employees’ Deposit Linked Insurance Scheme (EDLI), the employee is insured up to Rs.7 lakh. On the death of an active member of EPFO during the period of service, up to Rs 7 lakh is paid to his nominee or legal heir. This benefit is provided by the companies and the central government to their employees.
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