The Employee Provident Fund, popularly known as PF is the retirement saving scheme available to all the salaried employees, is backed by the government on which fixed interest is paid.
The employee provident fund is administered by the Employees Provident Fund Organization (EPFO), a statutory body developed by the government of India under the Ministry of Labor and Employment. It is formed to administer the mandatory contribution towards the PF scheme by both the employees and employers.
An employee cannot withdraw a full EPF balance before attaining the age of retirement. In the case of a cessation of the employment, the maximum withdrawal cannot exceed the aggregate contribution of the employee and the interest accrued thereon. An employee can withdraw an employer’s portion only after attaining the retirement age.
An employee can withdraw only his contribution and the interest accrued thereon on resigning from the job. The portion of the employer’s contribution is available only when he attains the retirement age. So, the employee continues to be a member of the EPF scheme until he attains the age of retirement.
The retirement age has been increased from 55 years to 58 years.
An employee can withdraw up to 90% of the EPF balance on attaining the age of 57 years.
According to EPFO, an employee cannot contribute to EPF account if they stop working. Any contribution by the member must be matched with the employer's share of contribution.
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