EPF Withdrawal: Due to the epidemic corona, many people have also spent their accumulated capital over the years. Especially it had the biggest impact on the employed.
EPF Withdrawal: Provident Fund gives maximum support in old age of the salaried person. This is a retirement benefit. According to EPFO, people withdrew the maximum funds during the Corona period. In the year 2021, more than 71 lakh people closed their EPF account. But, how accurate is the withdrawal from the EPF account? EPF is Retirement saving fund. Its premature withdrawal can cause huge losses. Let’s understand how.
How much damage is done with one time withdrawal?
EPFO’s retired assistant commissioner A.K. According to Shukla, suppose you have 30 years left in your retirement and you have made a withdrawal of Rs 1 lakh from the EPF account, then with this one-time withdrawal your retirement fund will be reduced by Rs 11.55 lakh.
| EPF Withdrawal | how much loss after 20 years | how much loss after 30 years |
| 50 thousand rupees | 2 lakh 5 thousand rupees | 5 lakh 27 thousand rupees |
| 1 lakh rupees | 5 lakh 11 thousand rupees | 11 lakh 55 thousand rupees |
| 2 lakh rupees | 10 lakh 22 thousand rupees | 23 lakh 11 thousand rupees |
| 3 lakh rupees | 15 lakh 33 thousand rupees | 34 lakh 67 thousand rupees |
Note: The interest in the table has been calculated on a yearly basis (8.5% interest rate).
If there is no emergency then do not withdraw
According to the rules of EPFO, when you retire at the age of 58, then this money will come in handy. If there is no emergency with you, then you should not withdraw money from the Provident Fund. For the last financial year, an interest of 8.1 percent is being given on EPF. This is the highest interest rate among all small savings schemes. Therefore, the more money you have in your account, the more interest you will get. If there is a withdrawal from the EPF account, then the retirement fund will have the same effect.
Provident Fund deducts 12%?
According to the EPFO, 12 percent of the salary and dearness allowance (Basic Salary + DA) is deposited in the PF account from the basic salary of the employee every month. There is also contribution from the employer side. There are two types of benefits in PF account. First part of EPF and second part of pension (EPS). 8.33 per cent of the employer’s contribution is deposited in the pension. At the same time, 3.67 percent is deposited in the Provident Fund. Interest is earned on the basis of compounding on the whole money, that is, interest is also available on interest every year.
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
