Potential reason for PF withdrawals are:
For Medical Purpose
If employees have medical expenses,they can withdraw either their PF contribution with interest or up to six times their monthly salary, whichever is less. This option is for medical treatments for themselves, their spouse, children and parents. Importantly, there is no waiting period or minimum work duration required.
For Repaying Home Loan
Members with outstanding home loans can withdraw up to 90% of their provident fund corpus if the house is registered in their name or held jointly. However, a minimum of 3 years of complete service is a pre-requisite for this withdrawal.
For Wedding
Eligibility for wedding-related withdrawals requires a minimum of 7 years of service. Contributors can withdraw 50% of their contribution with interest for their own, siblings' or child's marriage by providing financial aid for significant life events.
For Renovating and Reconstructing a House
Employees planning renovations or reconstruction can withdraw funds from their EPF amount, provided the house is held in their name or jointly with their spouse. A minimum of 5 years of total service is required, and members can withdraw up to 12 times their monthly salary from the provident fund account.
For Purchasing or Contructing a New House
Members aiming to purchase or construct a new house can withdraw a partial amount from their EPF, subject to the property being regsitered in their name or jointly with their spouse. This option is available after completing a minimum of 5 years of total service, with withdrawal limits defined by salary multiples or the cost of the property. Importantly, this withdrawal can only be made once during the entire service tenure.
For Retirement
Upon reaching 58 years of age, individuals can withdraw their entire provident fund corpus with the flexibility to withdraw up to 90% of the balance, offerinf financial security in the retirement phase.
For Unemployment
In the phase of unemployment, individuals can withdraw 75% of their provident fund after one month of unemployment. For unemployment exceeding two months, the remaining 25% of the corpus can also be withdrawn, providing a financial cushion during extended periods of joblessness.
For Education
Individuals with PF account can withdraw 50% of their total employee contribution to EPF. This can be utilised for higher education expenses or to cover the educational costs of their children after completing class 10.
All employers to whom this law applies are required to pay to its employees at least the prescribed minimum wages, maintain registers containing details of the employees and the wages paid and have to display notices in their factory or establishment.
This law is applicable to all employers who hire employees in respect of any prescribed employments. Further, the law applies to all employees who are employed to do any work, whether skilled or unskilled, manual or clerical for hire or reward.
This law applies to every Industry and its various industrial establishment carrying on any business, trade, manufacture or distribution of goods and services irrespective of the number of
workmen employed. This law is applicable in respect of workers, who are employed to do any manual, skilled or unskilled, technical, operational, clerical or supervisory work for reward, excluding workers who are employed in the supervisory or managerial capacity and who draws more than INR 10,000 per month.
Under this law, the occupier is required to obtain a license to establish and operate a factory. The application for license has to be made at least 15 days prior to the occupation or use of a premise as a factory. The occupier or the manager needs to maintain a register of workers employed in the factory.
Further, the occupier also needs to display a notice in English and vernacular language on a convenient place in the factory premise containing an abstract of this law.
This law is applicable to all factories in which: (i) 10 or more workers are employed in the preceding 12 months, where manufacturing process is carried out with the aid of power; and (ii) 20 or more workers are employed in the preceding 12 months, where manufacturing process is carried out without the aid of power. Further, this law is applicable in respect of workers who are emloyed in a factory, whether for remuneration or not, in any manufacturing process and any activity incidental to the manufacturing process.
As per the Employee Provident Fund Organisation Act, Employee has to contribute 12% and Employer has to cotribute 13% in PF of each employee with a UAN No.
Employers' part of PF contribution of 13% is divided in 12% as employer contribution for PF redemption amount of employee 1% as PF Admin Charges & 1% as EDLI charges.
EDLI is Employees' Deposit-Linked Insurance Scheme. The purpose of this scheme is to provide life insurance benefits to the employees of any estabishment to which the act applies.
Employees' Pension Scheme is the scheme the purpose of which is to provide superannuation pension, retiring pension, permanent total disablement pension, widow or widower's pension, children pension or orphan pension.
8.33% of basic wages, dearness allowance and retaining allowance (if any) is held for Employees' Pension Scheme under the Employees Provident Funds & Miscellaneous Provisions Act, 1952.
PF is applicable in all the states except for Jammu & Kashmir as per the Employees' Provident Funds & Miscellaneous Provisions Act, 1952.
PF is applicable on every establishment which is a factory or any other establishment employing 20 or more persons.
A charitable or religious trust of old temples is not covered under the definition of applicability of Employees Provident Funds Act.
As per the Employees' Provident Funds Act, salary includes the basic wages including leave encashment but does not include food concession, dearness allowance, HRA, Overtime allowance, bonus or any other similar allowance.
An employer of the establishment is responsible for the compliance under the PF Act. The employer may be he owner or occupier of the factory or other establishment which may include the agent of such owner or occupier, his legal representative (if the owner is deceased) or the manager, managing director or person whi holds the ultimate control over the affairs of the establishment.