Every month, 12% of your salary goes into your Employees' Provident Fund (EPF) account, and your employer contributes an equal amount. Over time, this adds up, thanks to yearly interest. This fund serves as a cushion for your retirement. When you retire, you can access your entire EPF balance. This financial lifeline ensures a smooth transition to your post-work life.
While you get your lump sum EPF amount when you retire, when other emergencies or urgent needs arise, you can withdraw money as a loan if you need them for emergencies such as:
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Unemployment
If you've been out of a job for over a month, you can withdraw up to 75% of your EPF savings. If unemployment stretches to two months, the remaining 25% becomes accessible.
Education and Marriage
After seven years of contributing, you can withdraw up to 50% for higher education or significant life events like weddings.
Medical Emergencies
EPF lets you withdraw six months of basic wage and allowances or the employee share (with interest), whichever is less.
Special Needs
Specially-abled individuals can tap into their EPF for six months of basic wage or employee share with interest, easing the burden of purchasing necessary equipment.
Home Loan Help
After 10 years of contribution, EPF helps with home loans. You can withdraw 36 months of basic wage and allowances or the combined employee and employer share (with interest).
Property Plans
If you want to buy or renovate a property, EPF allows early withdrawals.
So, EPF is more than retirement savings. It's a helping hand in life's twists and turns. From education and medical needs to weddings and property dreams, EPF is there. Remember, use these options wisely while safeguarding your retirement plans.
