Do you know there are many disadvantages to withdraw money from PF account? Know what is the rule of EPFO

Provident Fund is the amount that is usually received after retirement. Interest rate of 8.5% is available on the amount deposited in your provident fund. However, Employees’ Provident Fund Organization (EPFO) allows to withdraw some part of the provident fund for marriage, medical emergency, education etc. before retirement.

Huge loss at the time of retirement

If you withdraw money from provident fund, then you will have to face long loss at the time of retirement. So try to make sure that you do not have to withdraw money from PF during the job. However, for some important expenses, you can withdraw some part from this fund even before retirement. But there is a loss by withdrawing money. Similarly, some people withdraw PF money on changing jobs. But by doing this, you have to face heavy losses at the time of your retirement. After retirement, there is a shortfall in the fund, which also affects the pension. If you do not withdraw funds even after retirement, then you get interest in it for 3 years.

Interest on EPF fixed for FY 2019-20

In the recent EPFO ​​meeting, the decision on interest rates for the financial year 2019-20 was decided. 8.5% interest has been fixed on the Employees Provident Fund (EPF) for the year 2019-20. But only 8.15% interest will be given from EPFO. The remaining 0.35 percent interest will be paid in December.

The Central Board of Trustees of EPFO, in its meeting on March 5, recommended the rate of interest on EPF for 2019-20 to be 8.50 percent, which is already 0.15 percent less. The trustee board is headed by Labor Minister Santosh Gangwar. This proposed rate of EPF is the minimum rate of 7 years.