BAJAJ BROKING
EPF (Employee Provident Fund) or PF (Provident Fund), as it is sometimes referred to, is a savings scheme offered to employees in the Public and Private Sectors of India. Both employers and employees contribute to this scheme so that employees have a savings scheme built up over a period of their working life. The goal of the scheme is to permit employees to collect capital that will help them during their retirement. The corpus that is created by the EPF scheme may be accessed by the employee or withdrawn by the employee according to regulations and certain rules. The scheme was set up by the EPFO (Employment Provident Fund Organisation) and is supervised by the Government of India. Let us find the PF/EPF Withdrawal Rules in this article.
Also Read: UAN Member Portal
The funds in an EPF or PF account are meant to be withdrawn when an employee retires from active employment. Nonetheless, particular Provident Fund withdrawal regulations and rules exist to permit people to use the collected PF sum for any emergency needs. The EPFO has made such regulations permissible for this specific purpose. Holders of an EPF account may make different kinds of withdrawals such as those mentioned below:
A person may withdraw a portion (a partial amount) from their EPF account before it reaches maturity (there are exceptions in case a person becomes unemployed) under particular circumstances. If you have a PF or EPF account, it is important for you to know these circumstances and the rules pertaining to them.
You can get information about the EPF or PF withdrawal rules on the EPFO portal, but here are some key rules to get you started:
With a PF member login, you may use your UAN to find out more details about withdrawal rules and options.
When you know some of the common reasons for the withdrawal of funds from your PF or EPF account, you may understand why certain rules apply. The EPFO has listed some cases and these are highlighted below:
A PF or EPF account holder is able to withdraw up to 75% of the total collected amount if they have been unemployed for more than a month. Additionally, this provision allows the EPF account holder to withdraw the 25% remaining amount if unemployment stretches to 2 months and over.
EPF account holders are permitted to withdraw up to 50% of the entire employee’s contribution to pay for their own higher education or bear the expenses of education of their children who have completed class 10. However, this is permitted subject to a minimum of 7 years of contribution towards an EPF account.
The recent EPF withdrawal rules also permit an account holder to withdraw up to 50% of the employee’s EPF share to pay for the expenses of a marriage.
The only stipulation is that the marriage must be that of the person concerned, or the EPF holder’s child or sibling. However, this particular provision can be used only after 7 years of PF contribution is completed.
A PF/EPF holder can also withdraw amounts to pay for urgent medical treatment. This is permitted for self-use and to pay for immediate family members’ treatment and related expenses. Individuals are able to withdraw up to 6 months of basic pay and dearness allowance. Alternatively, individuals can opt to withdraw the employee share with the interest from the EPF account. Nonetheless, whichever amount is less out of the two options can be withdrawn.
According to the EPFO, specially-abled EPF account holders can withdraw 6 months’ basic pay and dearness allowance, or the employee share of the EPF balance with interest (the lesser amount considered), to pay any equipment expenses. The EPFO made such a regulation to ease the potential financial burden placed on those individuals who could experience difficulty in paying for costly equipment related to their physical challenges.
EPF account holders are permitted to withdraw 36 months of basic pay and dearness allowance, or the total of the employer and employee share with interest to pay for home loan EMIs. Nonetheless, this facility is only available to those EPF account holders who have made a contribution of 10 years to the EPF account.
You can find the EPF withdrawal rules on the EPFO portal. According to these rules, individuals holding an EPF account can undertake a premature withdrawal to buy a plot of land or a house.
Also Read: EPFO: Understanding the Scheme and Benefits
EPF withdrawal rules make it flexible enough for employees to use the balances in their EPF account for various reasons and purposes. Furthermore, there is no tax burden on employees with regard to TDS when withdrawals are made after 5 years of consecutive service and EPF contributions are accordingly made.
While navigating the EPFO portal to make withdrawals, it is necessary for employees to have their documentation in order. A UAN, proof of identity and address, information on bank accounts, and a cancelled cheque are among the required documents.
New withdrawal rules have made the system of withdrawal convenient for employees and serve as a way out of many financial challenges an employee may face.
Share this article:
Moving Averages Indicator: Variations & Examples
13 Dec, 2024 | 4 Min. read
Learn Everything About Breakout Trading
13 Dec, 2024 | 9 Min. read
Gold Price in India | Gold Drops 1% After Reaching Five-Week High
13 Dec, 2024 | 39 Min. read
Statement of Account and Demat Account: Meaning & Differences
13 Dec, 2024 | 4 Min. read
What are the Timing For Commodity Market Trading?
13 Dec, 2024 | 6 Min. read
Defence Ministry Signs ₹13,500-Crore Deal with HAL for Su-30MKI Jets
13 Dec, 2024 | 2 Min. read
Kalpataru Projects To Raise ₹1,000 Cr Via QIP; Bags ₹2,174 Cr Orders
13 Dec, 2024 | 2 Min. read
Repo Rate & Reverse Repo Rate: Differences, Full Form & Meaning
13 Dec, 2024 | 5 Min. read
What is Spread Betting and How Does it Work
13 Dec, 2024 | 9 Min. read
Ashok Leyland Wins ₹345.58 Crore Order for 1,475 BSVI Bus Chassis
13 Dec, 2024 | 2 Min. read
Zomato Faces ₹803 Crore GST Demand, Including Interest and Penalty
13 Dec, 2024 | 2 Min. read
Share Market Today | Gift Nifty Indicates Negative Start For Indian Markets
13 Dec, 2024 | 4 Min. read
RBI Launches ULI: Transforming Loan Access
August 27, 2024 | 4 Min. read
Textile Sector in India
September 20, 2024 | 5 Min. read
List of IPOs with DRHPs Filed
November 30, 2023 | 3 Min. read
Aditya Birla Group
September 28, 2023 | 10 Min. read
Bajaj Housing Finance Ltd IPO: Things Smart Investors Need to Know
September 05, 2024 | 4 Min. read
Budget Stock Ideas 2024-2025 | Stocks to Buy Today
July 24, 2024 | 4 Min. read
IPO Eligibility Criteria : Full Details
March 15, 2024 | 6 Min. read
What Is the Lock-In Period in IPOs?
October 18, 2023 | 6 Min. read
Godfrey Phillips Announces 2:1 Bonus Shares
September 16, 2024 | 7 Min. read
Jindal Group- A Comprehensive Analysis
September 27, 2024 | 7 Min. read
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading