EPF Rules on Withdrawal & Interest
Discover all the latest EPF rules and regulations. The EPFO administers provident fund under Ministry of Finance and Ministry of Labour. Being a retirement saving scheme, EPF norms are very important for employees. PF is also withdrawn before retirement for loan purpose or while changing job. Different EPF rules are set for PF withdrawal tax and interest rate. These rules depend on the number of years after which withdrawal is claimed. Other determinant factors are also discussed in this article. Against the popular notion of PF being tax exempted, it attracts tax under certain conditions. Know the rules before you claim for withdrawal of your PF. The post also details the revised interest rates on the provident fund.
The EPF rules regarding interest and taxes are getting revised every year. It is possible to withdraw PF in advance. PF amount can also be used to fund your LIC premiums. A host of other rules makes the EPF saving scheme more lucrative. Due to lots of improvisation in the EPF, it is now very simple to withdraw. You can withdraw it without the signature of your employer. The interest rates on EPF directly affects your long-term savings. It is advisable to transfer PF amount to your new company’s PF account. Being updated on rules will help you to decide you to claim your PF withdrawals.
EPF Interest Rules
EPF interest rate gets revised with every budget. The rate of interest on EPF for workers is revised from 8.75 to 8.8% in 2016. The budget of February 2016 revised the rate to 8.8%. However, trade unions were demanding for 8.90% interest on EPF. Interest on EPF accumulations is decided by the Ministry of Labour and Employment as suggested by CBT. In spite of demanding more increase by the trade unions, Finance ministry has set the interest of 8.8%. We have published EPF rules for tax on provident fund withdrawal separately.
PF Withdrawal Rules
Check some latest EPF rules. Know how much PF you can withdraw before retirement age. Is it possible to withdraw full PF amount before 58 years? The below rules will answer all your doubts and confusions. Employees often need to withdraw PF at the time of change of job. However, only partial withdrawal is possible now due to change of rules.
EPF Rules for PF Withdrawal
- An employee cannot withdraw the full amount of PF before 58 years.
- An employee can withdraw 90% EPF amount provided you are 57 years old or one year is due for your retirement.
- If you leave a job before you are 58 years, your EPF membership will continue you are legible to withdraw the 100% PF amount.
Hence, now onwards it is not possible to withdraw 100% PF amount before retiring. The membership will now cease if you stop working. You will be a member of EPFO until you are 58 years regardless of whether you are working or no.
EPF Withdrawal Rules
- For housing purpose
- For medical treatment of employee or family member
- For son or daughter’s marriage purpose
- Children’s education purpose (including medical, dental, and engineering etc.)
- If an employee becomes a member of contributory PF or any other pension scheme of old age.
EPF also has rules regarding taxation. PF withdrawal attracts tax if it is withdrawn before 5 years. We have posted the EPF rules for tax separately. Check the conditions under which your PF withdrawal will attract tax. Also, know when your PF withdrawal is exempted from tax. You can always check your PF balance status online through our portal.
The introduction of UAN has already eliminated the exclusive hold of the employer on the PF related procedures. Employees have a better hold on their EPF account. By linking UAN with aadhar, employees can have greater independence. Our post on UAN status will guide you for the procedures related to UAN. Provident fund claim status and balance amount can be checked online. Employees can also transfer their PF account from previous company to a new company. Keep visiting our site for all information on EPF rules. Do consider sharing our post with your friends over social media. In case of more information regarding your PF and epf status, it is recommended that you follow iepfbalance portal regularly.