An Employee Provident fund (PF/EPF) is made to provide financial stability and budgetary strength in terms of security to elderly people. An individual starts contributing to this fund when he/she becomes as an employee. The contribution/ endowment, commonly in most of the cases are on a monthly premise. The EPF registration is beneficial for both the employer and employees, here they have to contribute the share of 12% of the basic salary and DA (dearness allowance) (if any) every month to the EPF account.

The EPF is implemented and executed by the Employees Provident Fund Organization (EPFO) of India and the funds of EPF are maintained by the EPFO. Any organization or company has 20 or more workers employed has to register with EPFO which is required by the law, as specified by the government 180+ industries, has registered at the time when this scheme was came into force. The Employees Provident Fund Organization (EPFO) of India is a parliamentary law enacted body of the Union government and made under the ministry of labour and employment.


Employee Provident Fund (EPF) is an important tool for planning future after retirement. EPF is tax free and the after its maturity, it ensures a good growth in invested money. If it is continued for a very longer period, it can help significantly in meeting ones retirement goal. During emergencies EPF can be useful because of specific advantages it gives with which we are unaware.


EPS- Employee Pension Scheme and EPF- Employee Provident Fund are the two components which are introduced in 1995. The 12% of basic wage pay +DA, whole contribution of endorser goes towards EPF however from the employer’s contribution of 12%, the 8.33% goes towards EPS (Rs 541maximum) and remaining of the amount will be credited in an individual’s EPF account. The pension amount on retirement is linked and connected with the number of years in service and the average salary drawn and attached in the year before retirement. According to the law there is also a provision where you can get EPS money with EPF.


According to EDLI (Employee Deposit Linked Insurance) in any association or an organization where the scheme of group insurance isn’t for the employees, 0.5% of basic monthly pay (Maximum Rs 6500), the company has to contribute as premium which covers the life insurance. The insurance amount is higher than 20 times of the average pay of the past 1 year (Rs 6,500 P.M), i.e. Rs 1,30,000, for some this might be peanuts yet individuals who work in small enterprises for them this amount is adequate to help their family survival.

There are extraordinary events in your family or some crisis or .emergency arises. In that case if an individual is short of funds or cash, EPF comes helpful as it offers choice to pull back from the corpus however within some limits and by meeting some predetermined conditions.

  1. Goals/Objectives Marriage or Education

In the event that you need to orchestrate funds or assets for any of the above need then from your EPF account you can withdraw up to half of your contributed amount. Not just this, you can take this advantage multiple times throughout your life. In any case, you have to remember that for availing this you should be in services or in administration for at least 7 years. You should give substantial records like marriage card or confirmation of expense (Educational Fee) paid to an association or institute.

  1. Funds for House

You can get funds from your EPF account for house development or construction, fix or upkeep or for lodging advance reimbursement. For these advantages, there are conditions determined by the respective association. In a case if you have a housing loan and want to repay that, then you can take up to 3 years of basic wage amount from EPF balance provision is that, you have accomplished 10 years of your service. Likewise, you can also get amount up to 1 year basic wage pay (only once) in the event that you wish to do some change or fixing or repairing in your existing house. For this you ought to have finished 5 years of service and 10 years of service is required for repairing. If wish to buy/develop another plot/house, the services is required for reimbursement is reduces to five years. For the advantage in terms of wife the condition was prescribed by the association that the house should be of spouse in papers or of both in joint ownership.

  1. Funds for Medical Emergency

EPF provide benefits for operations, surgeries in a hospital which is under panel or by those who are suffering from leprosy, TB, cancer, paralysis, heart ailment or mental derangement. You can withdraw amount for 6 times of your basic wage pay or from the entire contribution you made till date of billing. The utilization of funds can be for the treatment of family or self, here family includes dependent parents, children or spouse

There are different advantages accessible in EPF like using assets for hardware buy by physically handicapped, in instances of harm because of regular disasters and so forth which one can benefit in need. You additionally have an office of naming relatives to get assets after your destruction and ought to know that withdrawing of EPF after job change is legitimate just when you are jobless for no less than two months. In any case, with every one of these advantages do recollect that it’s a retirement apparatus and ought to be used just when it is the last alternative accessible.