If you have been contributing to the Employees Provident Fund (EPF) for at least 20 years and if you are due to retire in the next two years, you may become eligible to get loyalty-cum-life benefit ranging from a minimum of Rs 30,000 to a maximum of Rs 50,000. The loyalty-cum-life benefit is a one-time reward to those who have been contributing to their EPF accounts. The proposal, which will benefit lakhs of EPF contributors across the country, is awaiting Union government’s approval.
The amount of loyalty-cum-life benefit will depend on the salary level of the EPF contributor. Accordingly, those drawing average basic wage of less than Rs 5,000 per month will get a benefit of Rs 30,000, those drawing average basic wage in the range of Rs 5001 to Rs 10,000 will get a benefit of Rs 40,000 and those drawing above Rs 10,000 will get the maximum amount of benefit of Rs 50,000.
Only those employees who retire between the age of 58-60 years and have contributed to the EPF account for at least 20 years will be eligible to receive loyalty-cum-life benefit. So, those who have contributed to their EPF account for more than 20 years but opt for voluntary retirement before reaching the age of 58 or those who have contributed to their EPF account for less than 20 years will not be eligible to receive the benefit.