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EPF withdrawal rules: If you work in a private company, then every month money is deducted from your salary to the Employees Provident Fund (EPF). Your employer also contributes equally to your account. Although this money is received on retirement, but people have a question in their mind that if they leave the job and go to some other company, then what happens to that money. If this thing comes to your mind then we have come to tell you about it-

According to EPFO ​​rules, when an employee retires at the age of 58 or 60 years, he gets the entire money deposited in EPF in lump sum. If you remain unemployed for two months even after leaving the job before retirement, you can withdraw your entire balance. If you change jobs, you can transfer your old PF balance to the new employer. For this, it is necessary for your UAN (Universal Account Number) to be active.

How much money can be withdrawn after leaving the job

If an employee leaves his job and settles abroad or changes his job, he can withdraw his EPF money.

One month after leaving the job, you can withdraw about 75% of the money from your EPF account.
You can keep the remaining 25% money in your account.
If you remain unemployed for two months, you can withdraw the entire money.

The purpose of this rule is to provide immediate financial help to the employees who leave the job.

Is there tax on EPF withdrawal or not?

Tax on withdrawal of money from EPF depends on how many years you have worked continuously.

If you have worked continuously for less than 5 years and have withdrawn money, you may have to pay tax.
If the amount withdrawn exceeds a limit, TDS (Tax Deduction at Source) may also be applicable.
But if you have worked continuously for more than 5 years and transfer the PF to a new employer, then there is no tax.

Its purpose is that people do not withdraw their PF early and accumulate funds for retirement.

EPS (Employees Pension Scheme) money

The rules for withdrawing money deposited in EPS are different from EPF:

If you have contributed to EPS for at least 10 years, you cannot withdraw it in lump sum before retirement.
You get pension on retirement at the age of 58 or 60 years.
If the contribution is less than 10 years and you leave the job, you can withdraw the money deposited in EPS.

Both EPF and EPS are important for your future and retirement. You can withdraw some money immediately after leaving or changing jobs, but it is beneficial to keep the entire fund till retirement.

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