Salaried people benefit from the Employment Provident Fund (EPF) scheme which is designed for retirement. Under this scheme, both the employer and employee contribute equally and upon retirement, the employee gets the accumulated sum along with the interest.
This scheme is managed by the Employees Provident Fund Organisation (EPFO). But did you know that in case of emergencies, when you need immediate funds but there are no alternative solutions, you can encash money from your EPF account?
Generally, before retirement, there is financial pressure to save up for children’s higher education, marriage or house and liquid cash to live life comfortably. In such a situation, a person will first use money from their fixed deposit. One can also use an EPF account to withdraw some amount for purchasing land, a house, or property, children’s higher education and even their marriage. However, there are a few rules for withdrawing money from EPF.
If you need funds for your children’s higher education, then you can withdraw money from your EPF account only after 7 years of service. This means that the money should have been deposited in your EPF account for 7 consecutive years. Only after 7 years, you will be allowed to withdraw 50 per cent of the total money deposited in your account.
The rules are different when you need the money to buy a property or get the house renovated. You can withdraw money from your EPF account after 5 years of service. If you and your company have deposited money in the EPF account for 5 consecutive years, then you can withdraw money within a certain limit for buying a house or land or renovation. Generally, to pay off a home loan, you can withdraw money from your EPF account after 3 years of service.
There are various ways to find out how much money has been deposited in your EPF account or to check your balance. You can find out the amount deposited by sending a message, giving a missed call or through the Umang app. For a message, send an SMS “EPFOHO UAN” to 7738299899 from your registered number. After EPFOHO write down your Universal Account Number (UAN). After you send the SMS, you will receive a message about the total balance deposited in your account.
You can also give a missed call to give a missed call to 9966044425 from your registered phone number. If the UAN of the member is seeded with any one of the Bank account numbers, AADHAAR and PAN, then the member will get details of the last contribution and PF Balance. After giving a missed call, you will get the balance message shortly. You can also check your balance from the Umang app.
Comments
0 comment