{"id":3524,"date":"2018-05-02T23:25:07","date_gmt":"2018-05-02T17:55:07","guid":{"rendered":"https:\/\/www.antworksmoney.com\/blog\/?page_id=3524"},"modified":"2019-09-25T11:36:36","modified_gmt":"2019-09-25T06:06:36","slug":"all-about-epf","status":"publish","type":"post","link":"https:\/\/www.antworksmoney.com\/blog\/all-about-epf\/","title":{"rendered":"All about EPF"},"content":{"rendered":"

Employee\u2019s Provident Fund (EPF)<\/strong>\u00a0is a retirement benefits scheme that\u2019s available to all salaried employees. This fund is maintained and overseen by the Employees Provident Fund Organisation of India (EPFO) and any company with over 20 employees is required by law to register with the EPFO.<\/p>\n

Provident Fund Deduction from Salary:<\/h2>\n

When you start working, you and your employer both contribute 12% of your basic salary (plus\u00a0dearness allowances, if any) into your\u00a0EPF account<\/a>. The entire 12% of your contribution goes into your EPF account along with 3.67% (out of 12%) from your employer, while the balance 8.33% from your employer\u2019s side is diverted to your\u00a0EPS (Employee\u2019s Pension Scheme). It\u2019s important to note that if your basic pay is above Rs. 6,500 per month, your employer can only contribute 8.33% of 6,500 (i.e. Rs. 541) to your EPS and the balance goes into your EPF account.<\/p>\n

Interest on EPF:<\/h2>\n

The compound interest that\u2019s decided upon by the government and central board of trustees is paid on the amount standing to the credit of the employee as on the 1st of April every year.<\/p>\n

While your contributions are made monthly, the interest is calculated yearly. At the start of every year, you have an\u00a0opening balance<\/strong>\u00a0(which is the amount accumulated till that point). Your opening balance for the next year would be:\u00a0opening balance + total monthly contributions + interest on the (old opening balance + contribution)<\/strong>\u00a0.<\/p>\n

Tax Benefits:<\/h2>\n

The employer contribution to your EPF is tax-free, and your contribution is tax-deductible under\u00a0Section 80C<\/strong>\u00a0of the Income Tax Act. The money you invest in EPF, the interest earned and the money you eventually withdraw after the mandatory specified period (5 years) are exempt from\u00a0Income Tax<\/p>\n

Money gets credited for me into an account. When can I withdraw it?<\/h2>\n

There are ways that you can navigate your way out of the mandatory 2 month waiting period if you want your EPF amount immediately.\u00a0Employees planning to settle abroad, or those who have landed jobs in a foreign country are eligible to receive PF withdrawal immediately after registration.<\/strong>\u00a0You\u2019ll need to submit proofs like a copy of your VISA or employment letter, as the case may be.<\/p>\n

A lesser-known waiver to the waiting period is that a female employee can withdraw her PF money if she is leaving service for the purpose of getting married.<\/strong>\u00a0The proof for submission here can be your marriage certificate or even your wedding invitation card. You can withdraw a portion of your EPF savings for the purpose of:<\/p>\n