For salaried workers, there is a retirement benefit plan called the Employee’s Provident Fund (EPF). The Employees’ Provident Fund Organization (EPFO) is in charge of running it. The plan requires equal contributions from both the employee and the employer.
At retirement, the employee receives a lump sum that includes both their contributions and interest. The rate of contribution is 12% of the employee’s base salary. The EPFO requires the registration of any registered business with more than 20 employees.
It is important to note that a company with 20 or more employees earning up to Rs 15,000 per month is required to deduct PF contributions.
The EPF plan is a great way to save for retirement, but the money can also be taken out if something goes wrong. If the employee’s Aadhaar is linked to their UAN, they can withdraw money online. In the past, withdrawals required employer approval, but this is no longer required.
In certain circumstances, such as in the event of a medical emergency or increased costs for children’s higher education, partial withdrawal is permitted up to 75%. Withdrawals are likely to conditions, and workers should guarantee that their solicitations meet these circumstances prior to applying.
Employees must verify that their Universal Account Number (UAN) is active and that their Aadhaar and bank account are linked before they can withdraw funds from the EPF.
They must use their UAN and password to access the EPFO’s e-sewa portal and complete the online form titled “Claim (Form-31, 19, 10C & 10D)” in the online services menu. They must accept the “Certificate of Undertaking” or the terms and conditions of the transaction after entering their bank account number.
If the withdrawal is premature, the next step is to answer a few questions and submit scanned documents to support it. Employees will receive an OTP on their Aadhaar-registered mobile number after entering the required amount, which they must verify in order to submit their request.
They can check the status of their claim on the portal; typically, it takes between two and three weeks for the request to be approved and the money to be deposited into their bank account.
Employees are required to meet a number of conditions in order to receive a partial refund for premature withdrawals under the EPF. EPF can be counted on to provide a safety net in the event of a financial emergency.