The Employees Provident (EPF) has gained popularity across India ever since it was first introduced to employees working in the public sector. Through this fund, members are able to make monthly contributions to their Provident savings account without necessarily having to make deposits.
This is because the Employees Provident Fund Organization (EPFO) cuts a certain percentage of your monthly salary and adds it to your savings account. You will then be able to access the funds once you reach the retirement age of 60. However, you can still withdraw the money before your account matures. This amount is mainly used when one wants to get a Home Loan, marriage loan or medical loan.
Apart from the benefits that one gets to enjoy by being a member of EPF, you will also have access to different government schemes that are specifically designed to meet the needs of employees. The Employees Provident Fund Organization administers three schemes to its active members who are eligible.
Through these schemes, members are able to get social security cover without spending a single coin. Below is an explanation of the different government schemes that can be accessed by EPF members.
- Employees Provident Fund Scheme
The Employees Provident Fund Scheme is mainly set aside for employees and employers who have registered themselves with EPF. All you have to do is make monthly contributions towards your Provident Fund savings account before finally accessing the money upon retirement.
You can also access the funds if you happen to lose your current employment and stay for a couple of months without getting a new employer. With this scheme, you no longer have to worry about your life after retirement since it will be looked into by the EPFO.
- Employees Pension Scheme (EPS)
The Employees Pension Scheme was first introduced in 1995 to look into the needs of both public and private sector employees. This pension scheme can easily be accessed by any member who is covered by the Employees Provident Fund Scheme. Under this scheme, every EPF member will be given a pension on a permanent basis.
In case an employee dies then this pension will be transferred to the next of kin who was suggested. Any person who wishes to avail pension through EPS will have to be a registered member of EPF for close to 10 years. However, you can still get access to EPS when you reach the age of 50.
- National Pension Scheme (NPS)
The National Pension Scheme is one of the schemes run by the government of India for EPF members. This scheme was mainly designed to cater for the needs of people who are employed by the central government. It was later on made available to every employee of India regardless of whether you are working in the private or public sector.
Through the above government schemes, it becomes easier for EPF members to get what they need without necessarily having to dig deep into their pockets.