How To Withdraw Pension Contribution In EPF?

Investments have become the core of an effective financial plan as they help multiply the invested amount at a quicker pace than a savings account. Investors can choose from a range of investment instruments, such as equities, which are market-linked, while some are fixed-income instruments, such as bonds. However, one investment instrument called the Employees Provident Fund (EPF) helps salaried employees save an adequate amount over time, where a part of the contribution is made by the employer. If you are a salaried employee, you are eligible to withdraw the amount from your EPF account after retirement or prematurely. However, it is important to know how to withdraw EPF contribution to withdraw the amount without any hassle.

This guide will help you understand how to withdraw pension contribution from EPF so that you can utilise the amount when you want the funds urgently.

• The Employees' Provident Fund (EPF) is a government-managed retirement savings scheme where both employees and employers contribute to building a retirement corpus for the employee.
• Employees are allowed to withdraw the EPF contribution after maturity or prematurely if certain conditions are met.
• Since the percentage of eligible withdrawal amount is based on the reason for which the amount is being withdrawn, it is important to know them in detail.

The Employee Pension Scheme (EPS) is a pension scheme provided by the Indian government under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. It came into effect in 1995 and operates under the Employees’ Provident Fund Organisation (EPFO). The scheme's main aim is to ensure that salaried employees save an ideal amount for retirement when they don’t have a primary source of income. EPS is available to employees who are part of the Employees' Provident Fund (EPF).

Under the EPS scheme, both the employer and the employee contribute towards the employee’s EPS account. Out of the employer's total contribution to the EPF (12% of the employee’s basic salary and DA), 8.33% goes toward the EPS (subject to a maximum limit of Rs. 15,000 per month). The remaining amount from the contribution goes towards the EPF account. Contributions to the EPF account are mandatory for salaried employees with a monthly salary of Rs. 15,000 and below.

Here is the process of how to withdraw pension contribution in EPF online:

• Visit Unified Member Sewa Portal's official website and log into your account using your UAN and password.
• Select the ‘Claim (Form-31, 19 10C & 10D)’ present under the ‘Online Services’ option.
• Your details, such as KYC, will be displayed on the screen. Enter your correct bank account number and click on ‘Verify.’
• Select ‘Withdraw Pension Only’ as the claim type and click on ‘Only Pension Withdrawal (Form 10C) in the ‘I want to apply for’ option.
• In Form 10C, enter your permanent address and tick the disclaimer section.
• Click on the ‘Get Aadhaar OTP’, enter the OTP received, and click ‘Validate OTP.’
• Click on the ‘Submit Claim Form’ and you will receive an SMS and the pension amount will get transferred to your savings account.

Here is the process of how to withdraw pension contribution from EPF offline:

• Visit the official EPFO website and download the composite claim form with or without your Aadhaar number.
• If you are submitting your application using your Aadhaar number, you must submit your bank details and link your Aadhaar card with your bank account.
• If you are submitting your EPF withdrawal application without your Aadhaar card, you need not link your Aadhaar card with your bank account.
• Duly fill out the downloaded form and submit it to the jurisdictional EPF office to complete your application.

The Indian government has put some restrictions on people who withdraw their EPF amount before retirement. However, if you fulfil the below conditions, you are eligible to withdraw your EPF amount:

Read also: How to Register Mobile Number in EPF

Now that you know the process of EPF pension contribution withdrawal, the next step is to understand the time frame for withdrawing your EPF contributions. Here are the criteria that will make you eligible to withdraw your pension amount:

• If you have reached 50 years of age and have worked for 10 years, you can prematurely withdraw your EPF amount. However, you will receive a reduced pension amount and it will decrease by 4% every year until you reach the age of 58.
• If you leave your job before completing 10 years of service but after six months, you can withdraw the EPS corpus (pension contributions) by filling out Form 10C. However, you can only withdraw the amount after being unemployed for approximately 2 months.
• Employees who have reached the age of retirement of 58 years but have not worked for 10 years are not eligible for a pension. Hence, such individuals can withdraw the entire pension amount from their EPF account in a lump sum.

Listed below are the documents required to withdraw pension contribution in EPF:

• Address proof as a proof of residence.
• Composite claim form (if the application is offline).
• Bank account statements in the name of the EPF account holder.
• Identity proof.
• A copy of a cancelled cheque or bank passbook for verifying bank account information.
• Personal information, such as date of birth, father’s name, etc., should match the provided identity proof.
• Your UAN should be activated, and KYC details (Aadhaar, PAN, bank account) should be linked and verified.

Eligibility Criteria to Withdraw Pension from EPF

To withdraw the pension portion of your EPF account, you must meet one of the following conditions:

• You have completed at least 10 years of eligible service and are 50 years or older, allowing early pension withdrawal with reduced benefits.

• You have worked for more than 6 months but less than 10 years and have been unemployed for 2 months or more.

• You have reached 58 years of age but have not completed 10 years of service, making you eligible to withdraw the full Employees’ Pension Scheme (EPS) amount.

The Employees' Provident Fund (EPF) is a government-managed retirement savings scheme for salaried employees, where both employer and employee contribute a portion of the salary. The scheme allows employees to receive a monthly pension after their retirement, or they can prematurely withdraw the amount in certain situations. EPF helps employees build a retirement corpus and have funds in the absence of a primary source of income. Now that you know how to withdraw EPF pension contribution, you can ensure a hassle-free EPF withdrawal process.

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