EPF Important Benefits: Every month when the salary comes, a smile comes on the face. But as soon as the eyes go to the salary slip, people often get a little disappointed after seeing one line - 'PF Deduction'. The question comes to mind: why did this money get deducted from so much hard-earned money? If you also think the same, then after reading this news today, your thinking is going to change completely. This small part deducted from your salary is not actually a deduction, but a 'magic piggy bank' for your future, which is quietly preparing a treasure of lakhs of rupees for you.

Most employed people keep getting money deducted from their PF account for years, but they do not know how beneficial it is for them. Come, today, let us explain to you in 8 easy points why your PF account is the smartest financial decision of your life.

1. A sure habit of saving without effort

We all want to save money, but often the month ends while we think, "I will do it from tomorrow," and we are left empty-handed in the name of savings. PF is the best solution to this problem. It is a kind of 'forced' but beneficial savings plan. You do not have to do any hard work yourself. Even before your salary reaches your account, a fixed portion (12% of your basic salary) is deducted and goes directly to your PF account. It disappears from your eyes, so you do not get a chance to spend it. Slowly, just like a pot fills up drop by drop, your PF account turns into a big amount by the time you retire.

2. The real magic is here - Double benefit!

This is the most amazing and 'WOW' benefit of PF. Imagine you put Rs. 100 in a piggy bank and someone magically puts another Rs. 100 in it! Your money has doubled. This is exactly what happens in PF. Whatever amount is deducted from your salary (12% of your basic salary), the same amount is deposited in your PF account by your employer, i.e., your company. This means that your savings are directly doubled. This is a benefit that you will never get in any other savings scheme, bank FD, or mutual fund. This is a hidden bonus given to you by your company.

3. Save money and tax too!

Earning money is one thing, and saving it from tax is another. PF helps you in both. It is a great and safe way to save tax. Under the Income Tax rules, which we call Section 80C, you can get tax exemption on investment of up to Rs 1.5 lakh in a year. The money deposited in your PF account is counted in this exemption. Meaning, the money deposited in your PF is not only increasing, but also reducing your taxable income, due to which you have to pay less tax. Not only this, PF has got the status of EEE (Exempt-Exempt-Exempt), which means that investment, interest, and withdrawal, all three are not taxed (with conditions).

4. Guaranteed returns with 'government security'

Nowadays, there are many investment options - the stock market, mutual funds, and crypto. But one thing is common in all these - 'risk'. If the market goes up, there is profit; if it goes down, there is loss. But PF money is 100% safe because it is overseen by the Government of India itself. There is no risk of your money sinking here. Along with this, the government announces a fixed interest rate on PF every year, which is usually higher than the bank's fixed deposit (FD). That is, you get a great return with a guarantee without any tension and without any risk.

5. The biggest support of old age - the tension of retirement is over

Today, you are young, working, and earning money. But think about the time when you will be 60 years old and will not be able to work. How will you manage your expenses at that time? The answer to this question is your PF account. The main purpose of PF is to give you a comfortable and financially secure life after retirement. The money deposited by you and your company during 30-35 years of job, after interest on interest (Power of Compounding), becomes a very large amount, which becomes a support for your old age.

6. It is your 'emergency friend' when needed

Many people think that PF money will be available only on retirement, but this is not completely true. PF is also a companion in your bad times. The government allows you to withdraw money (Partial Withdrawal) from your PF account on some special and important occasions. You can withdraw money for these needs:

Buying or constructing a house

Children's education or marriage

Medical emergency (for self or family treatment)

To repay the home loan

This facility makes your PF account not just a long-term savings but also an emergency fund.

7. Not one, but two types of retirement income (pension benefit)

This is a benefit that very few people know about. The 12% money that your company puts in your PF is actually divided into two parts. A large part (8.67%) goes to your PF account and a small part (3.33%) goes to the Employee Pension Scheme (EPS). With this EPS fund, you get a fixed pension every month after the age of 58 years. That is, on retirement, you will not only get a huge amount of PF (lump sum), but also pension every month for life.

8. 'Free life insurance' for your family

This is the least discussed but most important benefit of PF. Every PF account holder gets a free life insurance cover under the Employee Deposit Linked Insurance (EDLI) scheme. This means that if an employee dies during the job, his family (nominee) gets an insurance claim of up to Rs 7 lakh. No extra money is deducted from your salary for this facility. This provides a great financial security to your family in your absence.

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