EPF, or Employees’ Provident Fund is an instrument for ensuring financial security of an employee and his/her family after he/she retires from employment. However, one can make early withdrawals from the EPF account. A very significant feature of the EPF, or Employees’ Provident Fund, is that though it is designed essentially for the very long term – from the beginning of the working life of an employee till his/her retirement – an employee can withdraw funds before retirement in exceptional circumstances.
The EPF was legislated in 1952 and draws on 12% of the basic salary + DA from the employee as well as a matching amount from the employer to create a pool of funds and a monthly pension after retirement. These typically include the marriage of the employee himself/herself or his/her son/daughter/brother/sister; building/purchase of a house; medical treatment of the employee/family members; higher education of children etc. Let’s check all the situations and the maximum amount of money that an employee can seek to withdraw from the EPF account.
Types of advances that one can make from EPF Click for more latest Personal Finance news . Also get top headlines and latest news from India and around the world at News9. Avijit Ghosal has been writing on topics of business, industry and investment for the past three decades.
He also writes on the broad economy, infrastructure and issues in banking. He has worked for economic dailies such as the Business Standard, The Economic Times, business magazines such as Business Today, English broadsheet the Hindustan Times and Bengali daily Anandabazar Patrika before joining TV9 Network. Latest News.
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EPF: Know all the situations which allow advances from your account
EPF, or Employees’ Provident Fund is an instrument for ensuring financial security of an employee and his/her family after he/she retires from employment. However, one can make early withdrawals from the EPF account.