As per the mandate from the EPFO, every employee must have a UAN now. EPFO has allotted unique UANs to each and every individual who is making a contribution to the PF scheme. This UAN will remain the same throughout the career of the member and no matter how many jobs are being changed in the tenure of his job. With the same UAN, the member has the ease of transferring or withdrawing the EPF.
12% of basic pay of an employee’s salary is contributed towards the PF every month. The same amount is also contributed by the company. This contribution is called the PF or the provident fund amount. It gives a long term benefit to the people and usually they use it after their retirement. But in case the need for the lump sum arise it can be withdrawn earlier as well if the conditions put forward by the EPFO are fulfilled. Such conditions are explained further.
When one can withdraw the EPF?
The members can make a partial or a full withdrawal of their EPF. If they choose to make a full withdrawal, it can be entertained in the below mentioned conditions:
- The member has retired from his/her employment
- The member is not in any employment for a span of 60 days or more. And this gap of two months in the employment must be vetted by the officer of a gazetted rank in Indian Government.
It is, however, noteworthy, that if the members wish to make a full withdrawal of their PF during the change of jobs without any gap of 60 days or more during the transition from one job to another and while being constantly employed, it will be considered illegal and it is against the rules and regulations of the EPFO.
PF can be withdrawn partially under some certain conditions and circumstances. Upon fulfillment of these conditions the partial withdrawal can be initiated. These conditions include the reason for which the withdrawal is initiated, the limit of the withdrawal is also fixed as per the reasons and there is a criteria of the number of years of employment. The details on the same are mentioned as under:
- In Case of Marriage of self or children or siblings – In case the member has completed a minimum of 7 years in service, he/she can withdraw up to 50% of his contribution share of EPF.
- In case of Education of self or children after matriculation – In case the member has completed a minimum of 7 years in service, he/she can withdraw up to 50% of his contribution share of EPF.
- In case of Purchase/construction of house or purchase of land – If the member has completed a minimum 5 years of in service, he/she can withdraw the money as per the following conditions
- In Case of purchase of land – He/she can withdraw up to 24 times of monthly salary including the dearness allowance.
- In Case of purchase/construction of house – He/she can withdraw up to 36 times of monthly salary including Dearness allowance
- The condition on the same is that the asset must be in the employee’s name or his/her spouse name or both of them combined.
- In case of repayment of home loan – If the member has completed a minimum 10 years of in service, he/she can withdraw up to 90% of the PF contributed from the employee and the employer in the PF. But the following conditions are there:
- The asset must be in the employee’s name or his/her spouse or both of them combined.
- The withdrawal is permitted in case the documents required for the House loan by the PF office are being provided.
- The accrued amount in the PF account of the member must be more than INR 20000. It could be inclusive of his/her spouse’s money as well.
- In case of house repair and restoration – – In case the member has completed a minimum of 5 years in service, he/she can withdraw up to 12 times of his/her monthly salary. The only condition being that the house/property must be in the name of the member or his/her spouse or both of them combined.
- In case the member needs money some time before his/her retirement – Once the member completes 57 years, he/she can withdraw up to 90% of the amassed amount with interest. The age limit is as per the recent modification by the EPFO.
What is the process to withdraw the EPF?
EPF can be withdrawn through either of the two modes mentioned below:
- Submitting an application through offline medium for withdrawal
- Submitting an online application
Both of these are explained as under:
1. Submitting an application through offline medium for withdrawal:
Submitting the physical application is very easy. For that the member needs to fill in the claim form. One can either download the claim forms or can get the same from the nearest PF office. To download the form, visit the official website of EPFO – http://epfindia.gov.in/site_en/Downloads.php?id=sm8_index
While on this link, click on Claim Form and the forms will open on the screen. These forms are to be filled and then submitted to the EPFO which your company is aligned to. In case the Aadhaar card has been linked, the verification of the employer is not required before making the submission and in case the Aadhaar is not linked, the verification from the employer is required and then submitted to the EPFO of the respective jurisdiction.
Also it is noteworthy, that in case an employee wants to make the partial withdrawal of his PF amount as per the circumstances mentioned above in the table, he/she no longer needs to submit the certificates that were required by the EPFO. The new option introduced by the EPFO for the members include self-verification or self-certification.
2. Submitting an online application
The process of making the online withdrawals has made the life easier for people. The entire process is very convenient and doesn’t even take much of time. The EPFO has made changes in the process for the online withdrawals. Therefore, in case a member applies for EPF withdrawal through the online medium or EPF Portal, the below mentioned conditions are to be met:
- The 12 digit Universal Account Number (UAN) is activated and the contact number which was used to activate the UAN is still operating.
- The Universal Account Number is KYC seeded and linked with the PAN, Aadhaar and Bank account details (inclusive if IFSC code and other branch details.)
In case the mentioned conditions are fulfilled, the verification from the past employer is not required for the withdrawal of PF money.
Steps to apply for EPF withdrawal online:
The online PF withdrawal is a very simple process. If all the conditions are met, it only takes 8 steps to initiate the PF withdrawal. Mentioned below are the detailed steps:
Step 1: Visit the unified UAN portal or click the https://unifiedportalmem.epfindia.gov.in/memberinterface/ and login using your credentials – Log in ID and Password and also fill in the Captcha Code.
Step 2: Click on Manage and choose KYC. This is done to make sure whether the KYC information is accurate and verified. The KYC information entered must be re-verified once to ensure that it is entered correct. KYC includes the Aadhaar card, PAN Card and the bank details of the member.
Step 3: If the KYC is verified and authenticated, click the Online Services link and choose “Claim” from the menu. In case the KYC is not verified, contact the HR department of your organization immediately.
Step 4: Enter your last 4 digit of your bank account and click on verify button.
Step 5: Accept the T&C
Step 6: Once the member clicks on Claim, the details of the member will be displayed. These details include KYC and other employment details. Further, click on “Proceed for Online Claim” and you will now submit your claim.
Step 7: The last step includes selecting the claim that the member requires for example, complete PF settlement, or Partial withdrawal or withdrawal of pension. All these options would be available under the label – “I Want to apply for”. In case the member is not eligible for PF or pension withdrawal or pension withdrawal, as per the criteria of his service tenure, there will no option be shown in the dropdown menu.
Step 8: Enter your address then click on check after click on check box you have to click on Get Aadhaar OTP button.