Investments in Employee Provident Fund (EPF) and Employee Pension Scheme (EPS) can hold you in good stead in the long run, especially after retirement. The rules state that full EPF amount consisting of employer's contribution, employee's contribution, and the interest amount can be withdrawn only after attaining the retirement age of 58 years. The money can be withdrawn before the retirement age under certain circumstances. Your EPF membership will continue, as the employer's portion is paid only after age 58. You can however withdraw 90% of your entire EPF amount after the age of 57.
As per the norm, the employee contributes 12% of the basic pay plus Dearness Allowance, to the PF account. The employer contributes up to Rs. 541 per month to EPS. The balance of 12% (basic pay + DA) and the EPS contribution are added to the EPF account. The interest is calculated on the whole EPF amount.
EPF Withdrawal Process
As per the latest EPF withdrawal rules, you do not need attestation of your employer for partial or full withdrawal of your PF corpus. You can request for online PF withdrawal using EPFO member portal or the UAN portal using Composite Claims Form.
Before you apply for an online withdrawal, make sure your UAN is active and the mobile number linked to your UAN is working. You also need to ensure that your UAN is linked with your Aadhaar.
EPF Withdrawal Form
Earlier, Form 31, Form 19, and Form 10C were used for online PF withdrawal. Recently, these three forms have been replaced by a Single Page Composite Claim Form. You can self-attest this form for processing.
Things to know about withdrawing your EPF post-retirement
- For a smoother withdrawal process, make sure that all your PF accounts are merged into one so that all EPF balances get added for calculation. The Employees' Provident Fund Organisation (EPFO) has launched a 'composite form' that can be used for withdrawal, transfers, advances, and others. You can merge these online.
- Transfer from the previous employer to the present one should be processed without fail, to make the withdrawals easy. Also, once you change your job, you have to submit Composite Declaration Form (F-11) to the new employer along with the basic details, Universal Account Number (UAN) and previous PF number.
- The present employer enters the information in the employer’s portal. If UAN is linked to Aadhaar and the bank details, the auto-transfer takes place once the previous employer verifies. The actual transfer is processed once the first contribution by the present employer takes place. For the offline transfer process, Form 13 will be required.
- The interest earned on EPF balance after retirement is taxable.
EPF Withdrawal Rules
If you’re looking to withdraw your EPF, here are certain rules you need to remember:
Withdraw EPF balance and full pension after 58 years of age
After the age of 58, you can withdraw the full EPF amount as well as the pension. You need to fill and submit Form 10D to claim your full pension.
Withdrawal of pension between ages 50-58, with at least 10 years of service
Even if you have completed 10 years of service, the EPS amount cannot be withdrawn before the age of 58. However, you can claim a reduced pension if you are between the ages 50-58. For this, you need Form 10D and the Composite Claim Form.
Withdrawal of EPF And EPS if the service tenure is less than 10 years
Both the EPF balance and the EPS amount will be paid to you if your service period is less than 10 years. To avail of this, you need to check the option for ‘pension withdrawal’ in the Composite Claim Form. Whether it is full or partial EPF and EPS withdrawal, you can easily do it online through the UAN portal.
You can withdraw without an Aadhaar card by filling out the ‘Composite Claim’ form if you have a UAN. You need to submit your PAN details along with two copies of Form15GH/H if the total period of service has been less than 5 years. You can mention only the PF number in the absence of a UAN.
How much amount can I withdraw before one year of retirement?
Given that the early retirement age is set at 55 years, individuals are eligible to withdraw up to 90% of their Provident Fund (PF) balance, along with accrued interest, once they reach the age of 54, which is one year prior to their retirement.
What is the retirement age to withdraw the entire EPF amount?
55 years is the retirement age to withdraw the entire EPF amount.
What are the requirements for PF withdrawal?
- Your Universal Account Number (UAN) is active, and the mobile number used to activate the UAN remains operational.
- Your UAN is successfully linked with your KYC details, including Aadhaar, PAN, bank account information, and the corresponding IFSC code.
When these prerequisites are met, there is no requirement for your former employer to endorse your withdrawal request.
Invest in a fixed deposit for senior citizens for assured returns on your EPF
Withdraw your EPF and invest in a Fixed Deposit to get higher returns and stability on your savings. Many lenders offer special interest rates on fixed deposits for senior citizens. You can, for instance, invest an amount as low as Rs. 15,000 in a Bajaj Finance FD for senior citizens and get interest rates of up to 8.85% p.a., you can also make the most of multiple payout options and flexible tenures.