The Employee provident fund EPF is administered by the statuary body, Employee provident fund organization EPFO. The EPF further is essential for the employees it has certain benefits that will help the employee to save some amount of their remuneration every month in the form of savings. It is very important that the employees or any other person should do the savings of the fraction of the amount hey earn for better future. The employees whenever in need can choose to withdraw their money in their EPF account and cater to different financial regiments as per their needs. All the major life events are covered like the weddings, home renovation, medical treatment and more by the organization. The employees must make sure that 12% of the basic pay of the salary will get deducted from the remuneration per month in the form of provident Fund and gets contributed in the EPF account.
Rules for PF withdraw:
The employee must be aware of the rules imposed for the withdrawal of the EPF. As per the PF withdrawal rules, a salaried employee can only withdraw a PF account on two counts.
- If he/she has no job
- After 2 months on elapsing as last employment.
The employee must also withdrawal the PF with a valid purpose. The employees must possess certain documents that will be allotted to all the salary employees and will not be changed at any cost in the entire career. However, the list of purpose where a contribution can be made for the withdrawal is as follows:
- The employee can withdraw the PF in a case of the marriage of self, siblings, children and so. The employee must render almost 7 years of service in order to get the 50% withdrawal contribution.
- The employee can also withdraw the PF if the case is of medical treatment. The withdrawal can be made either six times or based on the monthly salary or the total corpus for the medical treatment of self, parents, spouse and children.
- The employee if willing to construct or purchase a plot can also go for the withdrawal under specific terms and conditions. The withdrawal can be further made only once during servicing the service of the account holder, however.
- In a case of retirement, the employee must be 54 years old and only then he/she can withdraw almost 90% of the corpus from the PF account.