Employee Provident Fund (EPF) is a benefit provided by an organization to the employees. The contribution is done by both the employee and the employer.
Any organization who is having more than or equal to 20 employees, must provide EPF benefits to the employees whose monthly salary is less than 15000 p.m.
Some facts about EPF withdrawal:
- The eligible employee can withdraw the EPF for its child education.
- If the employee is laid-off for the period of two months, he/she can withdraw the EPF amount from EPF
- The EPF amount can be withdrawn if the eligible employee or the person covered is suffering from diseases like T.B, cancer etc: provided the person hospitalized for more than 1 month, needs have a surgical operation.
During the employment period, a person undergoes its life events like marriage: the marriage of children or self. According to the previous amendments if an employee is unemployed or is laid off without compensation or the company is shut down etc, the employee can only withdraw the EPF amount after 2 months.
The waiting period becomes too long.
But according to the latest amendment, a person can withdraw 75% rather than 50% of his/ her EPF amount online and that to within 1 month of unemployment.
If an employee current basic monthly salary is less than 15000p.m, but after increment, his salary raised to 18000p.m, still he/she is eligible for EPF. The organization cannot deny of not giving the EPF.