EPFO Update
If you work in an organized institution and have a Provident Fund (PF) deduction, there is good news for you. Most account holders may not know that, apart from loans and insurance, EPFO subscribers are also entitled to an additional bonus.
Recently, the Employees’ Provident Fund Organization (EPFO) is preparing a list of beneficiaries eligible for this additional bonus. The maximum bonus amount can be up to ₹50,000. However, many account holders remain unaware of this facility and fail to take advantage of it, even if they are eligible. Let’s understand what this special EPFO facility is all about.
Bonus Calculation Basis
This additional bonus is provided by EPFO under the Loyalty-cum-Life Benefit scheme. To avail of this, certain conditions set by the organization must be met. For instance, only employees who have had a PF deduction for at least 20 years are eligible for this bonus. The amount of the bonus depends on your basic salary. Based on this, your additional bonus is calculated, and the maximum bonus amount can go up to ₹50,000.
How to Calculate
As per available information:
- Employees with a basic salary of ₹5,000 are eligible for an additional bonus of around ₹30,000.
- Employees with a basic salary of ₹10,000 receive ₹40,000 as a bonus.
- For higher salaries, the bonus amount can go up to ₹50,000.
Note: To qualify for the bonus, you must have completed at least 20 years of service. Employees with shorter tenures cannot claim this benefit.
Bonus on Retirement
The additional bonus scheme was introduced to provide financial benefits to employees after retirement. If you have completed 20 years of service, you can apply for the additional bonus based on your basic salary. The application process can also be completed online.