Last Updated:July 24, 2025, 08:15 IST
Both the employee and the employer contribute an equal amount each to the EPF scheme every month.
EPFO allows advance PF withdrawals under certain conditions.
The Employees’ Provident Fund (EPF) scheme is a government-backed social security programme aimed at providing retirement benefits to salaried employees. The scheme, managed by the Employees’ Provident Fund Organisation (EPFO), helps employees in the private sector to build a retirement corpus by contributing a small amount every month. An equal portion is also contributed by the employer.
Being a retirement benefit scheme, pre-mature EPF withdrawals are not encouraged. However, EPFO allows withdrawals under certain conditions.
Let’s take a look at the key details about EPF contributions and withdrawals.
EPF contributions
The EPF scheme is a contributory retirement benefit plan. Both the employee and employer contribute 12% of the employee’s basic salary and dearness allowance every month. Out of the employer’s share 3.67 per cent goes to the EPF account, while the remaining 8.33% goes to the Employees’ Pension Scheme (EPS).
The government reviews and fixes the EPF interest rate for each quarter. Currently, EPF interest rate has been fixed at 8.25%.
EPF withdrawals
The EPF corpus is meant to be withdrawn only on retirement. However, under a few conditions, EPFO allows advance withdrawals. These withdrawals can be made to meet expenses for buying a house, home renovation, wedding, higher education and serious medical conditions.
Here are the conditions under which EPF withdrawals are allowed:
Retirement: Entire corpus without any limit
Unemployment: Up to 75% of the PF balance after first month of unemployment and the remaining 25% after 2 months.
Medical conditions: Basic wages and DA of 6 months or employee share with interest, whichever is lower. This amount can be withdrawn for self or family members.
Education: Up to 50% of the employee’s contribution to the EPF with interest for the education of children after class 10.
Marriage: 50% of the employee’s share with interest for the marriage of self, children, or brother/sister.
Purchase of land/new house construction/home loan payment: Up to 90% of the corpus
Home renovation: 12 times of a member’s basic salary and DA, or the employee’s share with interest, or cost, whichever is the lowest.
For these advance withdrawals, EPF subscribers also need to meet other conditions, like the service period criteria. The withdrawals can be made both online and offline.
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Delhi, India, India
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