PF OR EPF Withdrawal Process, We all know that it is a difficult time for everyone and is forced to stay at home due to lock-down, as the entire world is in the grip of a threatening virus called coronavirus or it’s better to say COVID-19.
And in this time of hardship, the announcement made by the government is like a ray of hope that one can do PF withdrawal from EPF or Employees’ Provident Fund account, in case of facing any financial issue due to the lock-down. PF OR EPF Withdrawal Process
However, the government has notified in the amendment in EPF rules apropos fund withdrawal from the EPF account for any financial exigencies related to the coronavirus.
As per the amended EPF rules, one can withdraw an amount equal to the basic’s three months and DA or dearness allowance or the EPF member can withdraw 75% of the account’s credit balance, whichever is lower or minimum for them. PF OR EPF Withdrawal Process
A Glance at PF:
EPF stands for Employees’ Provident Fund, is a scheme that aims to provide a monetary benefit to the individuals after retirement. PF process or we can say that the PF withdrawal process is monitored by the Employees’ Provident Fund Organization (EPFO).
In this government-managed retirement savings scheme, the employees have to contribute a certain amount of their salary towards the pension fund. Gradually the amount gets accrued, and a lump sum amount can be accessed at the end of the employment or at the time of retirement.
Provident Fund Types
There are three types of PF, which are as follows:
The General Provident Fund (GPF)
This type of PF is defined and maintained by governmental bodies, including local authorities, railways, etc.
The Recognized Provident Fund (RPF)
- It applies to all the privately-owned organizations, having employees’ count more than 20.
- Besides this, for holding the rightful PF claim associated with the organizations, a Universal Account Number (UAN) of 12 digits will be given. In the case of changing occupation, this PF amount will be transferred from one employer to another.
The Public Provident Fund (PPF)
Itis a voluntary type of investment, from the employee’s part. It starts with the minimum amount of INR 50 and can be 1.5 Lacs at max with a pre-determined maturity period of 15 years. After this period, only it is possible to withdraw any amount from the account.
EPF Withdrawal Conditions
- One can easily do the EPF claim under the following circumstances:
- In case of unemployment for 60 days.
EPF Claim Partial
The employee can also do the partial PF withdrawal and withdraw a certain amount along with a certain count of years of services with the current employer.
|Reasons for PF Withdrawal||Maximum Limit||Eligibility|
|Education||Up to 50% of EPF’s employee’s contribution||7 Years|
|Marriage||Up to 50% of EPF’s employee’s contribution||7 Years|
|Land or Property Purchase||In the case of buying land, one can withdraw 24 times. of the monthly Wages +DA. In case of buying a house, up to 36 time of the monthly Wages + DA.||5 Years|
|Repayment of Home Loan||Maximum of 90% Employer & Employees Contribution to the EPF.||10 Years|
|Renovation of House||12 times of the Monthly Wages.||5 Years|
|Just Before Retairment||Up to 90% of accrued balances along with the interest rate.||–|
PF Withdrawal Requirement
One should satisfy the following conditions for the withdrawal:
- Universal Account Number of the EPF member must be activated.
- Aadhaar should be verified and linked with Universal Account Number.
- EPF member Bank Account with IFSC code should be seeded with UAN.
As per the EPFO, no other documents are required to avail of the benefit. However, one has to keep the scanned copy of the cheque, as it is required at the time of online withdrawal of the amount from the account.
The first step to start the process of PF withdrawal is the form submission and this can be done in two ways:
- Online Form Submission
- Form submission in the EPF office.
Procedure for the Online Form Submission:
As the world is going digitalized, more people are using online platforms to perform various functions including EPF withdrawal. You can follow steps for PF withdrawal online:
- Visit E-Sewa Portal of EPF India’s member, and login account by using UAN number and the password.
- Click on the Online Services button and then click on the claim tab.
- You have to choose the type of withdrawal claim, for that, you will see “I Want To Apply For” there you will get the following options:
- Full Withdrawal
- Partial Withdrawal
- Pension Withdrawal
In this section, various types of PF claim form are available such as:
- Form 19: For the complete or full PF Withdrawal.
- Form 31: For partial withdrawal.
- Form 10C: for Pension withdrawal benefit & scheme certificate Form 10D: For monthly pension claim
- Select the relevant claim. If the subscriber is eligible to avail it then only the types of withdrawal will be displayed in the drop-down box. In case if he is not eligible for the same then the option won’t be shown.
- Once you select the relevant claim, you will see a detailed form in which you have to fill all your details. Complete the process of form submission by authenticating using Aadhaar OTP. You can save the PDF format of the claim form copy.
- For approval, the claim will be forwarded to the employer. Once the claim gets the approval from the employer, then the amount will be credited to your account within 10 days of the application form approval.
EPF Offline Form Procedure for the Submission:
You can submit form offline by following two ways:
Aadhaar Based: The employee needs to submit a composite claim form or Aadhaar form at the regional EPFO office with no employer attestation required.
Non-Aadhaar Based: In this, the employee needs to submit a composite claim form or Non- Aadhaar form at the regional EPFO office along with the employer’s attestation.
We understand the importance of PF or EPF as this is your future savings and your best and the intimate friend who is always there for you at the time of your need. And it is well said that a friend in need is a friend indeed. For a person belongs to the middle class, it is difficult to save money due to his liability and responsibility he is having all through his life, thus PF is the best means to secure your future.