Archive · 24 Jul 2025
EPFO: Understanding Contributions and Withdrawals
The Employees' Provident Fund (EPF) is a government program to help salaried employees save for retirement.
Both employees and employers put money into the fund each month.
While the main goal is for the money to stay until retirement, you can take some out early in certain situations.
These include if you lose your job, for medical reasons, to pay for education or a wedding, or to buy a house.
The amount you can withdraw and the conditions depend on the reason.
EPF is a government-backed retirement plan for salaried employees.
Both employees and employers contribute 12% of the employee's salary to EPF monthly.
A portion of the employer's contribution goes to the Employees’ Pension Scheme (EPS).
EPFO allows advance withdrawals under specific conditions.
Withdrawals are permitted for retirement, unemployment, medical needs, education, marriage, and housing.
- Who
- Salaried employees and employers.
- What
- An explanation of EPF contributions and withdrawals.
- When
- Last updated July 24, 2025.
- Where
- Not explicitly stated.
- Why
- To provide retirement benefits and allow for specific early withdrawals under certain conditions.
- Scheme Type
- Government-backed social security
- Contribution
- Employee and Employer contribute 12% of employee's salary monthly
- Employer's Share
- 3.67% goes to EPF account; 8.33% goes to EPS
- Interest Rate
- Fixed at 8.25%
- Withdrawal Conditions
- Retirement, unemployment, medical conditions, education, marriage, housing
- Managed by
- Employees’ Provident Fund Organisation (EPFO)