Introduction
EPF (Employee Provident Fund), is one of the most efficient savings done to save their post-retirement happily. Although it conserves overall expenses, Withdrawal of money or the process involved in withdrawal makes it hard when it is required.
According to the Employees' Provident Fund Organization (EPFO) report for the FY 2022-23, 4.66 million claims were settled out of 7.38 million (overall). Around 2.49 million claims are rejected due to improper selection of forms, documentation, and lack of awareness. In this article, we provide the insights, processes, and techniques to complete your transactions easily.
What are Employees' Provident Funds (EPF)?
Employees’ Provident Fund (EPF), also called PF (Provident Fund), is a retirement savings scheme where the employee contributes a percentage of their salary to the EPF. The Employer also contributes a matching amount to their employee’s PF account.
Highlights:
As per the rules, employees must contribute 12% of their basic pay to the EPF (a/c) monthly.
Deposited amounts earn interest on an annual basis.
Employees can withdraw their tax-free amount when some specified conditions are met.
The entire sum (amount) will be transferred only after their retirement.
The Employees Deposit Linked Insurance Scheme 1976 (EDLI)
The Employees' Deposit Linked Insurance Scheme (EDLI) was introduced in 1976 to provide life insurance to private sector employees. The scheme is supervised by the Employees Provident Fund Organization (EPFO).
The Benefits are provided to the family of a deceased employee
who was actively enrolled in the EPF at the time of death.
To claim the Insurance amount, Nominees are advised to file the Form 51F.
As per the scheme, the amount will be 20 times on wages or deposits in the PF a/c.
In 2014, The EPFO increased its benefits to 3 lakhs, and an additional 20% of the benefits were also paid to the members.
Now the maximum benefit for the registered nominees will be up to Rs. 7 lakhs.
Limits on withdrawal amount
According to the EPFO, Withdrawal of money is limitless. They can avail of their EPF amount entirely or partially
1. Complete Withdrawal:
The following conditions only satisfy the complete withdrawal,
Retirement: You can withdraw your entire savings upon retirement.
Unemployment: If you are unemployed for approximately one month, you can withdraw up to 75% of your Provident Fund amount. For more than 2 months, you can withdraw your full a/c balance.
2. Partial Withdrawal
Partial withdrawals are made only for certain reasons. Individuals must possess the following conditions to withdraw their amount.
S. No | Reasons | Withdrawal limits (Maximum) | No. of years (service) required | Others |
1 | Medical purpose | 1. Up to 6 times of Basic salary (monthly) 2. If the total of the Employee’s contribution and interest is less than six months of basic pay, only that amount can be withdrawn. | No criteria | Medical treatment for parents, self, spouse, or children |
2 | Marriage | Up to 50% of employees share to EPF | 7 years | Marriage of self, son, daughter, brother, and sister |
3 | Education | Up to 50% of employees share to EPF | 7 years | Either for Employee or their children's education (for Post matriculation) |
4 | Purchase of land or Construction/ Purchase of house | 1. For land: Up to 24 times of Basic salary + DA (monthly) 2. For house: Up to 36 times of Basic salary + DA (monthly) 3. Above limits are restricted to the total cost | 5 years | • Asset (i.e. land or house should be named on the employee or jointed with the spouse). • You can avail of this facility once in your entire service. • The construction must begin within 6 months and be completed within 12 months from the date of the last withdrawn installment. |
5 | Home loan repayments | 1. Up to 36 times of Basic salary + DA (monthly) 2. Total amount of employers and employees’ contributions with interest. 3. Total outstanding principal and interest on housing loan | 10 years | • Property should be registered in the name of the employee or spouse or jointly held with the spouse. • Withdrawal is permitted subject to the furnishing of requisite documents as stated by the EPFO relating to the housing loan availed. • The Collections in the PF Holders’ account (or with the spouse), including the interest must be more than Rs 20,000 |
6 | House renovation | 1. Up to 12 times of wages + DA (monthly) or 2. Employees contribution with interest or 3. Total cost | 5 years | • Property should be registered in the name of the employee or spouse or jointly held with the spouse. • The facility can be rewarded twice: a) After 5 years of house completion b) After 10 years of house completion |
7 | Partial withdrawal (before retirement) | Up to 90% of accumulated balance with interest | Employees aged 54 or above can withdraw within one year of their retirement or superannuation date. |
Note: To withdraw your 100% EPF amount, a minimum unemployment period of 2 months is required. The individual has to remain unemployed during the provisional/ transitional period.
How To Withdraw PF Amount?
The Employees can withdraw their PF amount in two modes,
• Physical application
• Online application
1. Physical Application
For physical, the Employee has to download the Composite Claim Form (Aadhaar/non-Aadhaar) from the official portal. The Form consists of two types for both Aadhaar and non-Aadhaar holders.
Aadhaar users:
1. Use the Composite Claim Form (Aadhaar) only if you have linked the Aadhaar and bank details on the UAN portal.
2. Check whether your UAN is activated or not to claim the PF amount.
3. You can avail of the amount only after activating your UAN.
4. Submit the form to the respective jurisdictional EPFO office.
5. No need to get the signature from the Employer
Non-Aadhaar users:
1. If your Aadhaar and Bank details are not linked on the UAN portal, you can use the Composite Claim Form (non-Aadhaar).
2. Submit the form with the employer’s signature to the jurisdictional EPFO office.
Documents Required for PF Withdrawal
Universal Account Number (UAN)
Bank account information of the EPF member
Identity and Address proof
Cancelled cheque with IFSC code and account number
Steps to Apply EPF Withdrawal Online (UAN Portal)
Step 1: Open the UAN Portal.
Step 2: Sign in to your a/c by entering your UAN and password.
Step 3: Click on the “Manage” tab and “KYC” to check whether your KYC details (Aadhaar, PAN, and Bank details) are verified or not.
Step 4: After verification, select the “Online Services” tab and “Claim (Form-31,19,10C & 10D)” from the drop-down menu.
Step 5: Click the “Yes” option to sign the “Certificate of Undertaking”.
Step 6: Now, select “Proceed for Online Claim”.
Step 7: In the claim form, select your respective claim i.e. EPF settlement (fully/partial) or pension withdrawal
Step 8: If a member is ineligible for their requested withdrawal due to service criteria, that option will not be shown in the drop-down menu.
Step 9: Select “PF Advance (Form 31)” to withdraw your fund.
Step 10: Click on the certificate and submit your application. You may ask to submit the scanned documents for your form.
How to Check your PF Withdrawal Status?
To track your PF withdrawal status, follow the steps given below:
Step 1: Log in to the UAN using the UAN and Password.
Step 2: Click the 'Online Services' tab and the 'Track Claim Status' option.
Step 3: Enter the reference number.
Step 4: Status will be displayed on the screen.
EPF Withdrawal Taxability
Withdrawal Taxability is applied to your contribution on EPF a/c (in terms of years). If you contribute it for about five or more consecutive years, your withdrawal is eligible for tax-free withdrawal. If you contribute less than 5 years, the TDS will be deducted. TDS will be applied if you withdraw Rs. 50,000 or more from your employee provident fund before five years of continuous service. If less then no TDS will be deducted.
How does TDS work in EPF withdrawals?
If you have a PAN card then 10% TDS will be deducted from your withdrawal amount of above Rs. 50,000 before completing five years.
If not, 30% TDS will be applied to the withdrawal amount
You can apply for a tax-free withdrawal by submitting the Form 15G or 15H. Form 15G can be received on the same EPFO portal or Bank websites.
EPFO 3.0 ATM Withdrawal
EPFO 3.0 is a great initiative from the government to allow subscribers to withdraw their amounts through ATMs.
This Scheme can be expected by the middle of 2025.
The Main aim is to make it easier and user-friendly by enhancing its features effectively.
How can we assist you?
If you need assistance with PF withdrawals or related issues, PNPC Global is here to help. Our experienced team ensures a seamless process, allowing you to receive your withdrawals ASAP. We positioned 3 branches in major cities (Chennai, Bangalore, and Hyderabad) and 1 International branch in Dubai (UAE) to solve all your problems effectively.
For consulting, visit our website and fill out the contact form. You can reach our team by calling or sending a “Hi” message to the same WhatsApp number. Please follow the phone numbers for your respective location.
• Chennai: +91 98843 82100
• Bangalore: +91 98443 72100
• Hyderabad: +91 98852 82100
Get in touch with our team today! Collaborate with PNPC Global to enhance your business efficiency, growth, and tax regulations efficiently.
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