EPF or PF Withdrawal Rules 2024: Both the employee and the company contribute to the PF account. 12% of the employee’s salary goes into the PF account and the company also contributes 12% to the employee’s PF account.
PF Withdrawal Rules: All employed people in India have PF accounts (Provident Fund) which are operated by the Employees Provident Fund Organization (EPFO). The employee’s PF account works as a saving scheme. Every month 12% of the employee’s salary is deposited in this account. And the same amount i.e. the same amount is deposited by the company in the PF account of the employees.
A part of the amount deposited in the employee’s PF account is also reserved for his pension. According to the rules of EPFO, if an employee continues to contribute to PF for more than 10 years, then he becomes entitled to get pension. You can also withdraw the amount deposited in the PF account in some situations. But if you withdraw the entire amount from the PF account, then you will not get pension. Let us understand the rules of EPFO in detail regarding pension.
Pension is not available if you withdraw the entire amount from the account
As we told you, both the employee and the company contribute to the PF account. 12% of the employee’s salary goes to the PF account and the company also contributes 12% to the employee’s PF account. Out of the company’s 12% contribution, 8.33% goes directly to the EPS Fund (Employee Pension Scheme Fund). And the remaining 3.67% goes to the PF account.
Necessary conditions to get pension
If any PF account holder contributes to the PF account for 10 years, then he becomes entitled to pension. That is, if the employee has contributed to his PF account for 10 years, then he is entitled to get pension, even if he has left the job or changed the job after that. To claim pension, it is necessary for the employee to fulfill some conditions. Such as
EPS fund must remain active
If an employee contributed to the PF account for 10 years and later left the job, then to get the benefit of pension, the employee will have to keep his EPS fund active. If the employee withdraws the entire money present in his PF account when needed but his EPS fund is intact, then he will get pension. But even if he withdraws the entire money of his EPS fund, then he will not get pension. Therefore, it is very important to understand that if you want the benefit of pension, then EPS fund should not be withdrawn.
At what age can one claim pension?
According to the rules set by EPFO, an employee who contributes continuously to his PF account for 10 years can claim pension after the age of 50 years. Provided that he has not withdrawn his EPS fund.
