Employee Provident Fund is a secured mode of investment for salaried employees in India. Employers or organizations with more than 20 full-time employees must register with the governing body – EPFO.
It is well-known for its safety and security of funds due to it being management by the government of India. It is a long-term saving scheme wherein the employer contributes a share of his salary to the fund every month and the equal share is in turn contributed by the employer to the individual’s account as well.
This is governed under the rules of Employee Provident Fund Organization. To help with your retirement, you need to know what is EPF, all its features and understand its advantages.
Employees Provident Fund helps in long-term savings, primarily for your retirement years. It also offers tax benefit, by being exempt on all stages – the investment, the interest earned, and on withdrawal. You can easily monitor the state of your investment by logging on to the official website.
Even in case of change in organization, the fund continues to remain active, with the new employer pooling in to your existing account. You can make partial withdrawals, subject to certain conditions, although it is not advised, since the fund’s primary aim is to help with liquidity in your post-earning years.
With the help of your unique Universal Account Number (UAN), you can easily keep track of your PF account. This number remains the same even if you change your place of employment. The EPF funds can be transferred to the new employer and the contribution can continue from the new organization.