Employees Provident Fund Organization in Pakistan: Benefits, Drawbacks, and Procedures

Employees Provident Fund Organization in Pakistan

The Employees Provident Fund Organization (EPFO) in Pakistan plays an important role to ensure the financial well-being of employees. In this post, we will explore what is EPFO and it’s advantages & disadvantages. You can easily know how to claim your provident fund, check your balance, and the laws governing this system in Pakistan.

What is the Employees Provident Fund Organization?

The Employees Provident Fund Organization, or EPFO, is a government-run institution in Pakistan. Its primary purpose is to help employees save for their retirement. It operates under the Employees’ Old-Age Benefits Institution (EOBI) Act, 1976. The EPFO requires both employers and employees to contribute a portion of the employee’s salary to the provident fund.

Advantages of the EPFO:

Retirement Security: One of the biggest advantages of the EPFO is that it provides financial security during retirement. Employees can access their accumulated funds when they retire, ensuring a source of income even after they stop working.

Tax Benefits: Contributions made to the EPFO are eligible for tax deductions under the Income Tax Ordinance, 2001. This encourages individuals to save for their future while reducing their tax liability.

Employer Contributions: Employers are also required to contribute to their employees’ provident fund accounts. This additional contribution can significantly boost the savings of employees.

Disadvantages of the EPFO:

Lock-in Period: One drawback of the EPFO is that there’s a lock-in period for withdrawals. Employees cannot access their provident fund until they reach a certain age, retire, or meet specific conditions.

Limited Investment Options: EPFO funds are generally invested in low-risk securities. While this minimizes the risk, it may also result in lower returns compared to other investment avenues.

How to Claim Your Provident Fund:

To claim your provident fund: Fill the Required Forms: Start by filling out the necessary forms available on the EPFO website or from your employer.

Submit the Forms: Submit the completed PF forms along with any required documents to your employer.

Verification: Your employer will verify and forward your claim to the EPFO.

Processing: The EPFO will process your claim, and once approved, the funds will be transferred to your provided bank account.

How to Check Your Provident Fund Balance:

You can check your provident fund balance online through the EPFO’s official portal. Simply follow these steps:

  • Visit the EPFO Website: Go to the official EPFO website.
  • Click on ‘Our Services‘: Look for the ‘Our Services’ tab and click on it.
  • Select ‘For Employees’: Under ‘Our Services,’ choose the ‘For Employees’ option.
  • Click on ‘Member Passbook’: Find and select ‘Member Passbook.’
  • Enter Details: Enter your Universal Account Number (UAN) and registered mobile number. Click on ‘Get Authorized Pin.’
  • Receive OTP: You will receive an OTP on your registered mobile number. Enter it on the website.
  • Access Passbook: Once verified, you can access your EPF passbook and check your balance.

When Can You Withdraw Your Provident Fund?

You can withdraw your provident fund under the following circumstances:

Retirement: At the age of 60 or upon retirement, you can withdraw the entire provident fund balance.

Resignation: If you resign from your job and remain unemployed for two months, you can withdraw a portion of your provident fund.

Medical Reasons: In case of a medical emergency, you can withdraw from your EPF account.

Employees Provident Fund Laws in Pakistan

The EPFO in Pakistan operates under the EOBI Act, 1976, and is subject to various rules and regulations. These laws govern contributions, withdrawals, and other aspects of the provident fund. It’s essential to be aware of these laws to ensure you receive the full benefits of the EPFO.


The Employees Provident Fund Organization in Pakistan serves as a valuable savings avenue for employees, offering retirement security and tax benefits. While it has some drawbacks, understanding the rules and procedures for claiming and checking your provident fund can help you make the most of this financial resource.

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