EPF pension

If you contribute without withdrawing the amount, the huge corpus can be used as your pension. Yes, if you complete a certain age criteria and employment conditions you will be entitled to pension from Employee Pension Scheme.

EPF insurance

Last year, the department Employees' Deposit Linked Insurance Scheme (EDLI) increased the insurance limit to Rs 6 lakh from the existing Rs 3.6 lakh. The nominee is eligible for a wage ceiling of Rs 15,000 every month, the maximum amount assured works out to be Rs 3.6 lakh.

3) Death benefits

Nominated person can claim for the funds in the event of the death of an employee. If the amount is sufficient it will financially help your family to cope with loss and other things.

EPF Tax

EPF is entitled to Exempt, Exempt, Exempt (EEE) status. EPF is a tax-free instrument, but if you withdraw your EPF amount before 5 years, you will attract tax. Where EPF Association will deduct the TDS amount before final settlement.

Higher interest rate

EPFO has set the interest rate at 8.7 per cent for 2015-16, which is a good bet when compared to bank deposits or any other fixed deposit instruments.

Earn interest on dormant account

Now, individuals can earn interest on the dormant account. Earlier, if there was no contribution for 36 months in the account it was considered as dormant account and no interest was paid on the available amount.