New Delhi, May 19 -- The Employees' Provident Fund (EPF) is a popular retirement savings scheme in which both employers and workers contribute every month. Typically, an employee contributes 12% of basic salary and dearness allowance (DA), while the employer makes a matching contribution. But, the employer's share is split between the EPF account and the Employees' Pension Scheme (EPS). EPF deposits current earn and annual interest rate of 8.25% per annum.

Although EPF is primarily meant for retirement, employees can make partial or full withdrawals under certain circumstances such as unemployment, medical emergencies or other major expenses. However, withdrawing EPF before completing five continuous years of service can lead to tax liab...