Employee Provident Fund Organisation (EPFO) is the national organization which manages this retirement benefits scheme for all salaried employee.Any organization with more than 20 register with EPFO.
An employee can opt out of the scheme provided they do it at the beginning of their career.The amount cannot be withdrawn at will.The rules limit the withdrawl amount and term of years in service.Once registered , both employer and employee have to contribute 12% of the basic salary to the fund.If the employer does not pay his share or deduct the entire 12% from the employee’s salary , he can be taken to PF Appellate Tribunal for redressal.
The amount can be withdrawn subject to a waiting period of maximum two months for emergent needs and necessary expenses.The rules specify the limits of withdrawl and the necessary years of service for each purpose.An employee can withdraw a maximum of 3 times , and if withdrawn before five years the amount becomes taxable.A list of withdrawl rules of EPF is available .
*GRATUITY
The payment of Gratuity Act , 1972 provides a statutory right to an employee in service for more than five years to gratuity .It is one of the retiremement benefits given to the employee.It is a lump sum payment made in a gesture of gratitude towards the employee for their service.The amount of gratuity increases with the increment and number of years of service.
LABOUR LAW 