EPF – Employee Provident Fund.
12% of your basic salary is invested in EPF and an equal amount is matched by your employer each month. This is what 95% people know about EPF.
But there are many things in EPF which a lot of people don’t know One should be aware about all the EPF related information.
There are two parts of EPF –
(i) one is called EPF and other is
(ii) EPS.
The EPF is actually for your provided fund and EPS is for your pension.
The 12% contribution from your side goes to EPF, but the 12% contribution which your employer makes - 8.33% actually goes in EPS -maximum of Rs 541 also on EPS no interest is given and the rest goes into EPF.
One is liable for pension only if one has completed the age of 58. One is liable for pension only if he has completed 10 yrs of service (in case of more than one companies, the EPF should have been transferred, not withdrawn) The maximum Pension per month is subject to maximum of Rs 3,250 per month.
Lifelong pension is available to the member and upon his death members of the family are entitled for the pension. At the time of EPF withdrawal , you get both EPF and EPS Withdrwal of EPF at time of Job Change is illegal Every one thinks that withdrawing of your EPF amount after a job switch is totally fine and allowed, however as per EPF Rules, it’s illegal.
You can only withdraw your Employee provident fund money, only if you have no job at the time of withdrawing EPF and if 2 months have passed. Only transfer is allowed in case you get a new job and you switch to it. Just for your information, you can withdraw your EPF money without the help of past employer signature by attesting your withdrawal form by a bank manager or some gazzeted officer. So be clear before withdrwal.
EPF money can be withdrawn at special occasions :-
1. Marriage or education of self, children or siblings - You should have completed a minimum of seven years of service. - The maximum amount you can draw is 50% of your contribution - You can avail of it three times in your working life. - You will have to submit the wedding invite or a certified copy of the fee payable.
2. Medical treatment for Self or family (spouse, children, dependent parents) - For major surgical operations or for TB, leprosy, paralysis, cancer, mental or heart ailments - The maximum amount you can draw is 6 times your salary - You must show proof of hospitalization for one month or more with leave certificate for that period from your employer.
3. Repay a housing loan for a house in the name of self, spouse or owned jointly - You should have completed at least 10 years of service. - You are eligible to withdraw an amount that is up to 36 times your wages.
4. Alterations/repairs to an existing home for house in the name of self, spouse or jointly - You need a minimum service of five years (10 years for repairs) after the house was built/bought. - You can draw up to 12 times the wages, only once.
5. Construction or purchase of house or flat/site or plot for self or spouse or joint ownership - You should have completed at least five years of service. - The maximum amount you can avail of is 36 times your wages. To buy a site or plot, the amount is 24 times your salary. - Can be avail of it just once during the entire service.
12% of your basic salary is invested in EPF and an equal amount is matched by your employer each month. This is what 95% people know about EPF.
But there are many things in EPF which a lot of people don’t know One should be aware about all the EPF related information.
There are two parts of EPF –
(i) one is called EPF and other is
(ii) EPS.
The EPF is actually for your provided fund and EPS is for your pension.
The 12% contribution from your side goes to EPF, but the 12% contribution which your employer makes - 8.33% actually goes in EPS -maximum of Rs 541 also on EPS no interest is given and the rest goes into EPF.
One is liable for pension only if one has completed the age of 58. One is liable for pension only if he has completed 10 yrs of service (in case of more than one companies, the EPF should have been transferred, not withdrawn) The maximum Pension per month is subject to maximum of Rs 3,250 per month.
Lifelong pension is available to the member and upon his death members of the family are entitled for the pension. At the time of EPF withdrawal , you get both EPF and EPS Withdrwal of EPF at time of Job Change is illegal Every one thinks that withdrawing of your EPF amount after a job switch is totally fine and allowed, however as per EPF Rules, it’s illegal.
You can only withdraw your Employee provident fund money, only if you have no job at the time of withdrawing EPF and if 2 months have passed. Only transfer is allowed in case you get a new job and you switch to it. Just for your information, you can withdraw your EPF money without the help of past employer signature by attesting your withdrawal form by a bank manager or some gazzeted officer. So be clear before withdrwal.
EPF money can be withdrawn at special occasions :-
1. Marriage or education of self, children or siblings - You should have completed a minimum of seven years of service. - The maximum amount you can draw is 50% of your contribution - You can avail of it three times in your working life. - You will have to submit the wedding invite or a certified copy of the fee payable.
2. Medical treatment for Self or family (spouse, children, dependent parents) - For major surgical operations or for TB, leprosy, paralysis, cancer, mental or heart ailments - The maximum amount you can draw is 6 times your salary - You must show proof of hospitalization for one month or more with leave certificate for that period from your employer.
3. Repay a housing loan for a house in the name of self, spouse or owned jointly - You should have completed at least 10 years of service. - You are eligible to withdraw an amount that is up to 36 times your wages.
4. Alterations/repairs to an existing home for house in the name of self, spouse or jointly - You need a minimum service of five years (10 years for repairs) after the house was built/bought. - You can draw up to 12 times the wages, only once.
5. Construction or purchase of house or flat/site or plot for self or spouse or joint ownership - You should have completed at least five years of service. - The maximum amount you can avail of is 36 times your wages. To buy a site or plot, the amount is 24 times your salary. - Can be avail of it just once during the entire service.