The Employees Pension Scheme (EPS) was started by EPFO ​​on 16 November 1995. It has replaced the Employees Family Pension Scheme 1971. However, there are some conditions for this. Let’s know its complete process…

Pension will be available after 10 years of service

EPS is a pension scheme, which is managed by EPFO . Existing and new EPF members are included under this scheme. There is only one condition to avail the benefits of this scheme, which the employee has to fulfill. According to the rules of EPFO, any employee becomes entitled to get pension after working for 10 years. However, this pension is available after completing the age of 58 years.

How is money deposited in PF account?

If you work in the private sector, 12% of your salary goes into your PF account. Your company also contributes the same amount, but 8.33% of it goes into the pension fund and the remaining 3.67% goes into the PF.

Will you get pension if there is a job gap

If you work for 10 years, you will be entitled to pension. Now the question arises that if a person loses his job in between and then gets a job again. Due to which there is a gap, will he get pension in such a situation? The rule in this regard says that pension is given after completing a period of 10 years. If the employee has not changed the UAN number, then he will be entitled to pension. There should be 10 years of job with the same UAN number. With this, the money deposited in the PM account will be visible in the same UAN.

Make sure to get a pension certificate

There is another option if you left the job 10 years ago. If you wish to work again in the future, do not forget to take the pension scheme certificate. In such a situation, whenever you join a new job, you can link your previous pension account to the new job through this certificate.

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Let us tell you that the main objective of the EPF scheme is to financially secure the post-retirement life of workers working in the organized sector through assured retirement fund and pension. However, employees can withdraw money partially or fully from their EPF account even before the scheme matures. However, recently EPFO ​​has changed the withdrawal rule. After this the tax burden has increased. Let us know what is the new rule of EPFO?

New EPF Withdrawal Rules 2024

nder normal circumstances, if you continue to do a regular job without any break or gap, you cannot withdraw provident fund before retirement. However, partial withdrawal of funds is allowed under certain circumstances, such as medical emergencies, higher education and buying or constructing a house. If an employee loses his job, he can withdraw 75% of the EPF after one month of unemployment and the entire 100% after two months. But for this, the employee has to declare unemployment.

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When will we have to pay 30% tax on withdrawal

For partial or full tax-free withdrawal of PF funds, it is mandatory that the PF subscriber has completed 5 years of contribution under the EPFO ​​scheme. However, if the withdrawal amount is less than Rs 50,000, no tax is payable. If the EPF withdrawal amount exceeds Rs 50,000 within five years of opening the account, the EPF subscriber will have to pay TDS of 10%, provided he has a PAN card. Without a PAN, this tax liability becomes 30%.

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The post EPFO Rule: EPFO has changed the withdrawal rules, 30% tax may have to be paid, know the new rule first appeared on Rightsofemployees.com.

For example, if there is a marriage of a son or daughter in the house, then you can easily withdraw money from PF but not more than 3 times. We all know that while in job, Advance PF can be withdrawn . But do we know when and how many times we can withdraw. Provident Fund ( PF ) is our future deposits, which by law should be kept in reserve for retirement only.

But what to do when a difficult situation comes on the forehead. For the same time, the rule of advance withdrawal or advance withdrawal of PF has been made. Employees Provident Fund Organization ( EPFO ) helps you in this. All you have to do is to tell the reason for withdrawing money. Only then does the withdrawal process begin. If the job is lost and there is no money in hand, then this can also be a reason for PF withdrawal.

Apart from this, you can withdraw money in advance for marriage, higher education, building a house to live in, purchase of land to build a house, etc. Now it comes to how much money you can withdraw and how many times you can withdraw money.

If you open your PF account on the website of EPFO, then both the company’s money and your deposited money are visible there. That is, the company and your share appear together in the passbook.

EPFO rules

The rules of EPFO ​​clearly state that the reason you choose for withdrawal decides how much money you will get. If for the reason you have chosen unemployment and did not get salary for two consecutive months, then whatever money you have deposited in PF, you can withdraw it. The second reason is natural disaster.

In this, you will get 75% plus interest of the total amount deposited in PF. OR 3 months salary plus DA. Whichever is less of these two, you will get. Exactly the same rule is for advance withdrawal of PF at the time of Kovid-19. PF advance can be withdrawn only once in the name of Covid-19. The question is that you can apply to withdraw money from PF account many times before retirement and how many times you can get money.

EPFO rules say that money can be withdrawn from PF account many times before retirement, but reason has to be given for that. For example, if there is a marriage of a son or daughter in the house, then you can easily withdraw money from PF but not more than 3 times.

When can you withdraw money

If you want, you can withdraw money 3 times for the education of son or daughter after 10th. If you are buying or building a house or land for it, then you can withdraw money just once.

Any number of times you can withdraw money from EPF account for medical emergency before retirement. There is no prohibition in withdrawing money, but you should also take care of its tax rules. If you withdraw PF money before 5 consecutive years of service, then TDS will be deducted at the rate of 10%. This rate is the same as when giving PAN while withdrawing money.

If PAN number is not given then TDS will be deducted at the rate of 30%. If you withdraw PF money after 5 years of continuous service, then no tax will be levied on it. If an employee transfers his EPF money to the National Pension Scheme or NSC, then he will not have to pay any kind of tax.

The post PF Withdrawal New Rules: How many times PF can be withdrawal before retirement, check EPFO rule first appeared on Rightsofemployees.com.