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An individual is not permitted to withdraw PF funds, partially or fully, until the time he/she is employed. One can withdraw up to 75% of the funds if he/she is unemployed for at least 1 month and the balance amount if they are unemployed for 2 months or more.
Heres a general overview of how provident fund contributions are calculated in Pakistan: Employees Contribution: The employee usually contributes a certain percentage of their basic salary towards the provident fund. The common contribution rate is 8% of the basic salary.
Money from the EPF account cannot be withdrawn during employment, unlike a bank account. EPF is a long-term retirement savings scheme. The money can be withdrawn only after retirement.
The law in Pakistan allows employers to offer provident funds as a substitute for gratuity. However, the provident fund is run as an investment fund in which both the employee and the employer make contributions which are then invested on behalf of the employee.
For EPF calculation on salary, begin by adding your basic salary and dearness allowance. Next, calculate your contribution, 12% of the above total. Then, determine your employers contribution, typically 3.67% of your total salary. Finally, add both contributions together to obtain the total PF amount for your salary.
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Sources of fund: Employees contribution: The amount deducted from the employees salary at a rate of 2% 15%. Employers contribution: Besides the usual salary payment made to the employer, an employer will also pay 2% - 15% of employees salary into the fund. It is also considered a part of employment welfare.
EPF Withdrawal Guidelines for 2023 Withdrawal Limits: ing to the updated regulations, PF account holders can withdraw an amount equivalent to three months of their basic salary plus dearness allowance or 75% of the net balance in their EPF account, opting for the lower of the two.
What is the rule for PF contribution? A monthly salary contribution of 12% is made to the Employee Provident Fund (EPF) by both the employee and the employer. Employees are not obligated to match employer contributions of up to 12% of their income, although they are able to do so voluntarily.

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