Indian Government has passed a law, well known as the Employee provident Fund scheme, according to which both the employee and the employer contributes at 12% of their wages, DA and retaining allowance to the fund, every month. This fund gets added to the employee’s EPF account (Employee Provident Fund) and the whole amount is given to him during various occasions such as retirement, medical expenditures, housing costs, family obligations, education of children or own, paying insurance policies etc.
The employee ends up paying to his EPF every month while the interest rate on his investment is calculated in the months of March/April every year. The applied interest rate gets fixed by the ruling Government of India in consultation with Central board of trustees and other concerned members. The EPF fund amount increases every year with the interest sum and deposited amount.
Checking EPF Fund Status
The concerned department passes a statement of EPF account to the contributing employees. The statement contains all the necessary informations such as the opening balance, amount contributed in the current financial year, total interest amount earned in the current year, withdrawn amount from the fund (if applicable) etc.
Withdrawing EPF Funds
EPF fund has been designed to help employees with some financial benefits upon his retirement. One contributing employee can withdraw his deposited amount completely, once he retires from his service at the age of 55 years.
However, there are few options and ways where the employee can withdraw EPF funds before retirement. One can withdraw any amount of up to 90% of the accrued amount if she is or more than 54 years old. On the other hand, one member is entitled to withdraw the full amount if (i) he leaves India and settles abroad or (ii) member retires from his job before reaching the 55 years age limit or (iii) if a person retires because of mental infirmity or in case of individual or mass retrenchment.