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The Employee Provident Fund (EPF) is a saving scheme established by the Employees’ Provident Fund Organization (EPFO). It is a retirement fund wherein the employees contribute a small portion of their remuneration i.e 12% of their basic pay every month. A matching amount is contributed by the employer as well. This amount is to be used by the employee at the time of his/her retirement. However, in case of unfortunate circumstances, EPF withdrawal by employees can be done earlier as well i.e. during the course of their employment.
When can an employee withdraw EPF balance?
As per the rules of the EPF Act, the final or partial PF withdrawal is allowed under the following situations:
- Retirement: When an individual retires from employment after attaining the age of 55, he can withdraw the entire amount of EPF. Employees can withdraw 90% of the EPF corpus 1 year before retirement, provided the person is not less than 54 years old.
- Unemployment: A person can withdraw 75% of his/her provident fund if he/she is unemployed for more than a month. For unemployment of more than two months, the remaining 25% of the funds can be withdrawn.
- Wedding: At least 7 years of service is required to be eligible for PF withdrawal. 50% of the PF contribution can be withdrawn for marriage purposes.
- Medical purposes: An employee is allowed to withdraw total corpus or six times the monthly salary (whichever is lower) from the provident fund for the medical treatment purpose. There is no minimum service or lock-in period for withdrawal in case of medical emergencies.
- Repayment of home loan: The employee is allowed to withdraw up to 90% of the corpus if the house is registered in his or her name or held jointly. However, at least 3 years of service completion is required to withdraw the amount.
- Renovation and reconstruction of the house : The employee can withdraw funds from his EPF account for renovation and reconstruction of the house. He/she must complete at least 5 years of total service and the house should be held in his/her name or held jointly with the spouse. The employee can withdraw 12 times his monthly salary from his EPF account.
- Purchase or construction of the house : An employee can withdraw from his EPF account for the purpose of purchasing a plot and constructing it. The property should be held jointly with a spouse or should be registered in his/her name. The amount can be withdrawn only after completing 5 years of service. 24 times of the monthly salary can be withdrawn to purchase a plot.
How to fill PF withdrawal form?
Withdrawal claims can be filed online as well as through the submission of a physical form.
- Submitting a form online: Employees can file a withdrawal claim using his or her UAN on the EPFO portal. It’s important that the UAN has been activated and the bank details and KYC has been updated on the portal.
Here are the steps to file an online claim for PF withdrawal:
- Login to the EPFO portal using the UAN and password.
- Visit the ‘Our Services’ tab and click on the option ‘Claim’ from the drop-down list.
- Click on ‘I Want to Apply For’. The subscriber will then be required to choose the type of withdrawal claim they wish to file – partial withdrawal, full withdrawal or pension withdrawal.
- If the subscriber is eligible to avail it then only the drop-down box with the types of withdrawal will be displayed.
- The claim is then sent to the employer for approval. Once approved, the PF amount will be credited to the subscriber’s account within a few days.
- Submitting a physical form: This involves downloading a Composite Claim Form (Aadhaar) from the EPFO portal, filling it out correctly and then submitting it to the respective EPFO office for approval. On the other hand, if a subscriber chooses the Non-Aadhaar Composite Claim Form, the information provided will have to be attested by the employer before it is submitted to the EPF office for further documentation process.
How to check your PF balance?
MyLoanCare.in offers a unique facility wherein you can also check your PF balance and statement in just seconds by submitting your mobile number registered with UAN and verifying the OTP received against it. You check your current EPF balance, employee and employer contribution to the fund every month, interest credited to the account and withdrawals.