05/07/2023
EPF is a government-established savings scheme for employees of the organised sector. The EPF interest rate is declared every year by the EPFO (Employees Provident Fund Organisation) which is a statutory body under the Employeesβ Provident Fund Act, 1956. For the current financial year 2022-23, the interest rate on the EPF account has been fixed at 8.15%. Only employees of companies registered under the EPF Act can invest in the EPF or PF. Both the employer and employee are required to contribute 12% of the employeeβs basic salary and dearness allowance every month to the EPF account.
- In special cases, partial withdrawals can be made from the EPF upon specifying the reason for withdrawal. The withdrawn funds have to be used for that purpose.
- In case of unemployment, self-employment or employment in unorganised sector, EPF balance will continue to earn interest up to 3 years thereafter, which will be taxable.
- Upon attaining the EPF retirement age that is 58, corpus can be withdrawn except the portion which is used for the Employeesβ Pension Scheme (EPS) which will be paid to you as pension and the same will be taxable.
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