The Employees’ Provident Fund (EPF), also known as PF (Provident Fund), is a mandatory scheme for all the employees of an eligible organisations.
According to EPF rules, employees must contribute 12% of their basic pay monthly to this fund. The employer also has to contribute the equal amount to the employee’s PF account. The amount deposited in EPF accounts earns interest annually.
Upon retirement, employees have the option to withdraw the entire accumulated sum in their EPF. However, this article explains how one can make premature withdrawals from the EPF account, and in what conditions they can withdraw.
What Is Required for PF Withdrawal Online?
You may need quick access to these funds in situations such as hospitalisation, wedding or education of your child, home renovation, and repairs. Instead of taking a loan, you can withdraw funds from your PF in whole or in part. Remember that you will have to keep UAN handy to initiate the PF withdrawal process.
To withdraw your PF amount using the EPFO portal, you will need to ensure the following:
- Aadhaar number must be linked and verified with UAN
- The bank account where you want to receive the amount must be the same as the bank account registered with your Aadhaar
- In case of any changes or modifications, you can complete the eKYC process and update your details before you submit a claim
How To Withdraw PF Amount
A. Physical Application
Download Composite Claim Form (Aadhaar/ Non-Aadhaar) to withdraw your EPF balance
1. Composite Claim Form (Aadhaar)
- If your Aadhaar and bank details are linked on the UAN portal and your UAN is active, use the Composite Claim Form (Aadhaar).
- You can fill and submit the form directly to the EPFO office without requiring attestation from your employer.
2. Composite Claim Form (Non-Aadhaar)
- If your Aadhaar and bank details are not linked on the UAN portal, opt for the Composite Claim Form (Non-Aadhaar).
- Complete the form and submit it, along with your employer's attestation, to the EPFO office
B. Online Application
The EPFO introduced an online withdrawal option, simplifying the entire process and saves time.
- Activate the Universal Account Number (UAN), and confirm the mobile number used for UAN activation is operational.
- Your UAN is linked with your KYC (Aadhaar, PAN, etc.)
How to Withdraw PF Amount with UAN?
You can easily withdraw your PF online through your UAN by visiting the EPFO e-SEWA portal. Here are the steps you need to follow:
- Log in to the portal – Visit the EPFO e-SEWA portal, log in using your UAN and password, and enter the captcha code. In case you have forgotten your password, you can reset it via an OTP sent to your registered mobile number.
- Visit the online claims section – When you’ve logged in, you can look for ‘claim (Form-31, 19, 10C & 10D)’ in the ‘online services’ section.
- Enter bank account details – Once this section opens, you will be required to enter the correct bank account number (seeded with UAN) as a verification process.
- Confirm terms & conditions – Once you have verified your details, you need to confirm the Terms and Conditions stated by EPFO. You can then click on ‘proceed for online claim.’
- Select reason for withdrawal – You will find a dropdown menu, from which you would need to choose the reason for withdrawing from your PF account. You will only be shown the options for which you are eligible.
- Enter details and upload documents – When you select the reason for withdrawal, you would need to enter your complete address, and you may need to upload your cheque/passbook details if you’ve chosen the option for ‘Advance Claim.’ You’ll need to accept further ‘Terms and Conditions' before requesting a one-time password (OTP) for verification.
- Get Aadhaar OTP – Once you have confirmed your details and accepted the terms and conditions, you would need to request an OTP, which will be sent to the mobile number registered with your Aadhaar. Upon entering the OTP, your claim application will be submitted.
Once you have submitted your claim, you can track your claims status by logging into your member e-SEWA portal account under track claim status. The EPFO officials will match your data in their records with the data submitted in your online claim form. On completing their verification, they will process your claim application, and the amount will be credited to the bank account linked with your UAN.
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How to EPF Withdrawal without UAN?
To withdraw your Employees' Provident Fund (EPF) money without a Universal Account Number (UAN), you can follow these steps:
- Download the Appropriate Form: If you do not have a UAN, you will need to fill out a PF withdrawal form. You can choose between an Aadhaar-based Composite Claim Form or a Non-Aadhaar Composite Claim Form, which can be downloaded from the internet.
- Fill Out the Form: Complete the chosen form with all the required details. Ensure accuracy in providing your personal and employment-related information.
- Submit to Regional PF Office: Once the form is filled, submit it at your Regional Provident Fund Office. You can determine the jurisdiction of your PF office using your alpha-numeric Provident Fund Account Number, which is often mentioned on your salary slip.
- Identity Attestation: As per the old withdrawal process, you may need to get your identity attested by a bank manager, magistrate, or gazette officer. This attestation serves as a verification of your identity.
- Wait for Processing: After submitting your withdrawal form, it will be processed by the Regional Provident Fund Office, and the withdrawn amount will be credited to your registered bank account.
Steps to Apply for EPF Withdrawal Online on UAN Portal
Step 1: Go to the UAN portal.
Step 2: Log in using your UAN and password. Enter the captcha and click on the ‘Sign In’ button.
Step 3: Select the ‘Manage’ tab and select ‘KYC’ to verify your KYC details are verified or not.
Step 4: After KYC details are verified, select ‘Online Services’ tab and choose ‘Claim (Form-31, 19 10C & 10D)’ from the drop-down menu.
Step 5: After that, enter your bank account number and click on ‘Verify’.
Step 6: Click on ‘Yes’ to sign the undertaking certificate.
Step 7: Now, click on ‘Proceed for Online Claim’.
Step 8: In the claim form, select the desired claim, such as full EPF settlement, EPF part withdrawal (loan/advance), or pension withdrawal, under the tab ‘I Want To Apply For’. If the member is ineligible for any service, it won't appear in the drop-down menu.
Step 9: Next, choose ‘PF Advance (Form 31)’ to withdraw your fund. Provide the purpose of the withdrawal, the required amount, and the employee’s address.
Step 10: Click on the "certificate," submit your application.
New EPF Withdrawal Rules 2024
Here are ten essential guidelines regarding EPF withdrawal:
- Unlike a bank account, you cannot withdraw funds from your EPF account while employed. EPF is designed for long-term retirement savings, and withdrawals are only allowed after retirement.
- In the case of emergencies such as medical expenses, home purchase or construction, and higher education, partial withdrawals from EPF accounts are permitted. The withdrawal limits depend on the specific reason, and account holders can apply for partial withdrawals online.
- Early retirement is not recognised until the individual reaches the age of 55. However, the EPFO allows a person who is at least 54 years old to withdraw 90% of their EPF savings one year before retirement.
- If an individual faces unemployment due to reasons like lockdown or retrenchment before retirement, they can withdraw their EPF corpus.
- To withdraw the EPF amount, the person must declare their unemployment.
- According to the new rule, the EPFO permits the withdrawal of 75% of the EPF savings after one month of unemployment. The remaining 25% can be transferred to a new EPF account once new employment is secured.
- Under the old rule, 100% EPF withdrawal is allowed after two months of unemployment.
- EPF corpus withdrawal is tax-exempt under specific conditions. Tax exemption is applicable if an employee has consistently contributed to the EPF account for five years. If there is a gap in contributions for five continuous years, the entire EPF amount becomes taxable income for that financial year.
- Tax is deducted at the source when withdrawing the EPF corpus prematurely. However, if the total amount is less than Rs. 50,000, no TDS is applied. It's important to note that if an employee provides their PAN with the application, the applicable TDS rate is 10%; otherwise, it is 30% plus tax. Form 15H/15G is a declaration form stating that a person's total income is not taxable, allowing them to avoid TDS.
- Employees no longer need to wait for approval from their employer for EPF withdrawal. They can apply directly through the EPFO, provided their UAN and Aadhaar are linked, and the employer has given their approval. The status of EPF withdrawal can be checked online.
When Can You Withdraw EPF?
Partial or complete withdrawal of EPF is possible. Complete withdrawal is permitted upon retirement or if the individual is unemployed for over two months. Meanwhile, partial EPF withdrawal is sanctioned for specific purposes like medical expenses, marriage, or home loan repayment, among others.
EPF can be withdrawn under these circumstances:
- When an employee retires.
- If an individual is unemployed for more than a month, then he/she can withdraw 75% of fund.
- If an individual is unemployed for more than 2 months, then he/she can withdraw 100% of fund.
1. Medical Purposes
- Limit: Lower of six times monthly basic salary or total employee’s share plus interest.
- No specific service criteria.
- Medical treatment applicable for self, spouse, children, or parents.
- Limit: Up to 50% of employee’s EPF contribution.
- Service Required: 7 years.
- Applicable for self, son/daughter, brother/sister's marriage.
- Limit: Up to 50% of employee’s EPF contribution.
- Service Required: 7 years.
- Applicable for account holder’s or child’s education (post-matriculation).
4. Purchase of Land or House
- For Land – Up to 24 times monthly basic salary plus dearness allowance.
- For House – Up to 36 times monthly basic salary plus dearness allowance (restricted to total cost).
- Service Required: 5 years.
- Property (land/house) should be in employee’s or joint name with spouse. Withdrawal allowed once during service. Construction within 12 months from the last instalments.
5. Home Loan Repayment
- Limit: Least of:
- Up to 36 times monthly basic salary plus dearness allowance.
- Total corpus of employer and employee’s contribution with interest.
- Total outstanding principal and interest on housing loan.
- Service Required: 10 years.
- Property should be registered in employee's or spouse's name. Withdrawal subject to EPFO documents, and accumulation should be > Rs. 20,000.
6. House Renovation
- Limit: Least of
- Up to 12 times monthly wages and dearness allowance.
- Employee’s contribution with interest.
- Service Required: 5 years.
Property should be registered in employee's or spouse's name. Withdrawal allowed twice: a. After 5 years of house completion, b. After 10 years of house completion.
7. Partial Withdrawal Before Retirement
- Limit: Up to 90% of accumulated balance with interest.
- Service Required: At 58 years, withdrawal before one year of retirement or superannuation.
- No specific additional conditions.
EPF Withdrawal Taxability
When an employee has made contributions to their EPF account for five years in a row, their withdrawal is tax-free. In the event that a five-year contribution gap occurs, the EPF withdrawal amount is subject to taxation for that particular fiscal year. If an employee withdraws more than Rs. 50,000 from their EPF account before the five-year period, TDS is withheld.
When an employee withdraws more than Rs. 50,000 from their EPF account before the end of the five-year period and presents their PAN card, 10% TDS will be withheld. In the event that these workers do not show their PAN cards, 20% of the withdrawal amount will be withheld as TDS. However, if the employee provides Form 15G/15H, no TDS will be withheld.
When an employee withdraws their EPF balance after five years of service, no TDS is deducted.
Documents Required for EPF Withdrawal
The following documents are necessary to withdraw your PF:
- Universal Account Number (UAN)
- Bank account information of the EPF subscriber
- Identity and address proof
- Cancelled cheque with IFSC code and account number
Process to Enter Exit Date for PF Withdrawal
The mention of the exit date is a crucial step for PF withdrawal. The Employees' Provident Fund Organisation (EPFO) has introduced a new feature that allows employees to input their exit date from their previous employer through the Unified Member Portal. In the past, only employers had the capability to input this exit date, but now employees can also perform this action.
Here is the procedure for entering the exit date:
- Access the UAN portal by using your Unified Account Number (UAN) and password.
- Navigate to the 'Manage' tab and select the 'Mark Exit' option.
- Choose the employer from the provided drop-down menu.
- On the subsequent page, provide your date of birth, joining date, and exit date. Ensure that the exit date matches the one mentioned in your resignation or company departure letter.
To confirm the exit date, you can go to the 'Service History' section under the 'View' tab after logging into the UAN portal.
PF Customer Care Numbers
Here are the contact details for PF-related inquiries:
- Toll-free PF number: Dial 14470 for assistance.
- To receive EPF details via a missed call, use the number 9966044425.
- Check your PF balance by sending an SMS with the message "EPFOHO UAN" to 7738299899.
- For PF-related emails, you can reach out to firstname.lastname@example.org.
Which are the forms used for EPF withdrawal?
1. EPF Form 31
Form 31 is a form used for making withdrawals from the Employee Provident Fund (EPF) account for specific purpose. EPF Form 31 is commonly known as the ‘Advance Form’ and is used by employees to request advances or withdrawals from their EPF accounts.
2. EPF Form 19
It is used to claim the final settlement of your PF account or withdraw pension benefits. You can submit Form 19 without a UAN, just mentioning your PF account number.
3. Form 10C
Form 10C is used to withdrawal your pension amount. An individual can withdraw their pension amount when he/she switch jobs after a minimum of 6 months of continuous service, but before completing 10 years of service.