EPF Rules on PF Withdrawal & Interest Rate:
The EPF is administered by the government of India under the Ministry of Labor and Ministry of Finance. It does help the salaried employees to save a small part of their salaries every month. To deposit in the EPF account, 12% of the basic salary is deducted every month. EPFO is considered to be a long-term saving and retirement corpus; hence it is best to be aware of the EPF rules on PF withdrawal. Here in this article, we have listed all the EPF rules and regulations which you must be aware of.
All the companies which comprise of more than 20 employees are the members of EPFO. All the information we will be providing you here will be helpful for you all to use the maximum benefits of your PF account. All the employees must be aware of the EPF rules and regulations as well as the interest rates. You can withdraw the PF amount in advance if you are contributing for the same. Also, you can avail advances or loans on your PF account balance.
For better prospects, people keep on changing their jobs and it is necessary to keep yourself updated with the EPF rules and regulations. When you change your job, you can withdraw your PF or transfer to your current job. We have given all the valuable information associated with the EPF rules and regulations. Even without your employer’s signature, you can withdraw your PF amount. Every year the EPF rules and regulations keep on updating and the updates directly affect the long-term retirement savings.
EPF Rules on Interest Rate: PF Interest Rate Revised
The Interest Rate on the amount in the EPF account is the EPF Interest Rate which was fixed 8.7% in the financial year 2015-2016. The rate increased to 8.8% in the year 2016 for the workers. But the trade unions are demanding more to 8.9% as the EPF interest rate. Recently, the Ministry of Finance has finally ended up ratifying the rate of interest at 8.7%. But this decision has not been notified under the EPF rule.
PF Withdrawal Rules
The employees need to submit Form 19 for withdrawing their PIF amount and it is one of the EPF rules for withdrawal. In the year 2016, EPF rules and regulations have seen a number of major changes. Also, you can download the PF withdrawal form from the EPFO portal.
EPF Rules for PF Withdrawal
- For withdrawing the full PF amount, the age must be 58 years and above.
- 90% of your EPF amount can be withdrawn 1 year before the retirement, but age must be 57 years or above.
- After leaving your job, you can withdraw the contribution of the employee. The interest, as well as the employer’s contribution, will remain until your age of 57 years. It means that before 57 years, you cannot withdraw full EPF.
- EPF doesn’t end with leaving a job because you cannot withdraw the amount before 57 years of age. The membership will continue if you leave your job before 57 and continue until you are able to withdraw the full amount.
EPF is considered to be your retirement savings and it will negatively affect your savings if you prefer withdrawing the amount before the retirement age. All the EPF rules and regulations help in saving you from using the EPF accumulated portion.
If you are planning to withdraw the amount before 5 years, then it is important to be aware of the tax on PF withdrawal. There is no tax imposition on the EPF withdrawal at the time of retirement. But before the completion of 5 years, it is taxable from 10% to 30%.
EPF is a powerful retirement savings scheme and it is really important to know about the EPF structure and rules which help in deciding about the withdrawal while leaving or changing the job. Awareness about your EPF is really important because it helps you in using all the benefits which are provided by EPFO. Don’t forget to check our other related posts on UAN status, claim status and much more. Also, if you have any queries, just drop them in our mailbox.