PF benefits: Salaried person must know about these 5 things offered by EPF funds

From free insurance to partial withdrawal to loan facility, know these 5 benefits of PF account.

PF benefits: Salaried person must know about these 5 things offered by EPF funds

New Delhi: Provident Fund is a long term savings scheme that comes with several additional benefits for the subscribers. While the savings scheme is a good cushion for your future, it also has various perks for the salaried person.

Here are 5 benefits of EPF funds that every salaried person must know.

Employees’ Deposit Linked Insurance Scheme (EDLI)

A PF subscriber can avail benefits of free insurance up to Rs 7 lakh in case of death during the service period under EDLI scheme. In May, the insurance benefits under the EDLI scheme were enhanced and liberalized. Amount of maximum insurance benefit has been increased from Rs 6 lakh to Rs 7 lakh.

Pension Scheme for EPF account holder

An EPF Account holder is also entitled to lifelong pension scheme under Pension Scheme 1995 (EPS). As regards Employees’ Pension Scheme (EPS), 1995, a minimum pension of Rs. 1,000/- per month has been prescribed with effect from 01.09.2014 for the pensioners under Employees’ Pension Scheme (EPS), 1995.

Income Tax exemption

This savings scheme offers tax exemption under Section 80C of the Income Tax Act to an EPF Account holder. 

Partial Fund Withdrawals

EPFO allows for Partial Fund Withdrawals in certain cases such as medical emergency, home loan repayment, construction or purchase of new house, renovation of house, wedding of children or self.

Loan against PF

An EPF member can also avail loan in the wake of a financial emergency with a 1 percent rate of interest. However, the short term must be repaid within 36 months of loan disbursal.


Interest rate on employees’ provident fund (EPF) deposits was on March 12 cut to a four-decade low of 8.1% for the 2021-22 fiscal from 8.5% in the previous year. This is the lowest interest rate since 1977-78 on deposits that employees make towards their retirement fund. Interest rate on employees provident fund that year stood at 8%.

The 8.1% interest rate was recommended by the Central Board of Trustees (CBT) after its meeting in Guwahati under the chairmanship of Union Labour and Employment Minister Bhupendra Yadav, a labour ministry statement said.


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