EPF (Employees’ Provident Fund), also known as PF (Provident Fund), is a mandatory savings and retirement plan for qualifying employees of a company. This fund is meant to be a savings account that workers will tap into when they retire. Employees are required to contribute 12% of their basic salary to the EPF on a monthly basis. The employer contributes a matching number as well. Annual interest is paid on the money deposited in EPF accounts. When an employee retires, they can withdraw their entire EPF balance. Premature withdrawals are possible if certain requirements are met, as detailed in this article.
It is important to note that the Employees’ Provident Fund Organization has assigned UAN, or Universal Account Number, to all employees covered by the PF Act. The employee’s EPF account will be connected to the UAN. The UAN is transferable during an employee’s career, and there is no need to apply for EPF transfer when changing jobs.
Online EPF Withdrawal Procedure
1. When PF balance can be withdrawn
It is possible to withdraw EPF in full or in part. In any of the following conditions, the EPF can be fully withdrawn:
a. When a person decides to retire.
b. When a person has been out of work for more than two months. Individuals must obtain an attestation from a gazetted office in order to make a withdrawal.
The total withdrawal of EPF balance when changing employers without being unemployed for two months or more (i.e. during the transition period between jobs) is prohibited by PF rules and regulations. Partially withdrawing EPF funds is possible under certain circumstances and subject to certain conditions, which are briefly discussed below:
|Sl. No.||Particulars of reasons for withdrawal||Limit for withdrawal||No. of years of service required||Other conditions|
|1||Medical purposes||Six times the monthly basic salary or the total employee’s share plus interest, whichever is lower||No criteria||Medical treatment of self, spouse, children, or parents|
|2||Marriage||Up to 50% of employee’s share of contribution to EPF||7 years||For the marriage of self, son/daughter, and brother/sister|
|3||Education||Up to 50% of employee’s share of contribution to EPF||7 years||Either for account holder’s education or child’s education (post matriculation)|
|4||Purchase of land or purchase/construction of a house||For land – Up to 24 times of monthly basic salary plus dearness allowanceFor house – Up to 36 times of monthly basic salary plus dearness allowance,Above limits are restricted to the total cost||5 years||i. The asset, i.e. land or the house should be in the name of the employee or jointly with the spouse.ii. It can be withdrawn just once for this purpose during the entire service.iii. The construction should begin within 6 months and must be completed within 12 months from the last withdrawn instalment.|
|5||Home loan repayment||Least of below: Up to 36 times of monthly basic salary plus dearness allowanceTotal corpus consisting of employer and employee’s contribution with interest.Total outstanding principal and interest on housing loan||10 years>||i. The property should be registered in the name of the employee or spouse or jointly with the spouse.ii. Withdrawal permitted subject to furnishing of requisite documents as stated by the EPFO relating to the housing loan availed.iii. The accumulation in the member’s PF account (or together with the spouse), including the interest, has to be more than Rs 20,000.|
|6||House renovation||Least of the below:Up to 12 times the monthly wages and dearness allowance, orEmployees contribution with interest, or Total cost||5 years||i. The property should be registered in the name of the employee or spouse or jointly held with the spouse.ii. The facility can be availed twice:a. After 5 years of the completion of the houseb. After the 10 years of the completion of the house|
|7||Partial withdrawal before retirement||Up to 90% of accumulated balance with interest||Once the employee reaches 54 years and withdrawal should be within one year of retirement/superannuation|
2. Steps to withdraw PF online
In general, EPF can be withdrawn in one of two ways:
- Submission of a physical application to withdraw PF balance
- Withdraw PF online
1. Submission of PF application
The new composite claim (Aadhaar)/composite claim form (Non-Aadhaar) can be downloaded here:
Composite claim form(Non-Aadhar) can be downloaded here.
The new composite claim form (Aadhaar) may be filled out and submitted to the jurisdictional EPFO office without the employer’s attestation, while the new composite claim form (Non-Aadhaar) must be filled out and submitted to the jurisdictional EPFO office with the employer’s attestation.
2. PF Withdrawal using an online application form
Surprisingly, the EPFO has only recently introduced an online withdrawal facility, which has made the entire process more comfortable and less time-consuming.
The following requirements must be met:
To apply for an EPF withdrawal online via the EPF portal, ensure that the following conditions are met:
- The UAN (Universal Account Number) has been activated, and the mobile number used to activate the UAN is operational.
- The UAN is linked to your KYC, which includes Aadhaar, PAN, and bank details, as well as the IFSC code.
If the above conditions are met, the previous employer’s attestation is not required to complete the withdrawal process.
Watch this video and follow the process to withdraw PF online.
3. 10 Easy Steps to withdrawal PF online:
Step 1: Go to the UAN portal by clicking here.
Step 2: Log in with your UAN and password and enter the captcha.
Step 3: Then, click on the tab ‘Manage’ and select KYC to check whether your KYC details such as Aadhaar, PAN and the bank details are correct and verified or not. If not please do this first before proceeding.
Step 4: After the KYC details are verified, go to the tab ‘Online Services’ and select the option ‘Claim (Form-31, 19 & 10C)’ from the drop-down menu.
Step 5: The ‘Claim’ screen will display the member’s information, KYC information, and other service information. Enter the last four digits of your bank account and press the ‘Verify’ button.
Step 6: Click ‘Yes’ to sign the undertaking certificate and then proceed.
Step 7: Now, click on ‘Proceed for Online claim’.
Step 8: In the claim form, under the tab ‘I Want To Apply For,’ select the claim you require, i.e. full EPF settlement, EPF part withdrawal (loan/advance), or pension withdrawal. If the member is ineligible for any of the services, such as PF withdrawal or pension withdrawal, due to service criteria, that option will not be displayed in the drop-down menu.
Step 9: Then, to withdraw your funds, select ‘PF Advance (Form 31).’ Include the purpose of the advance, the amount required, and the employee’s address.
Step 10: Submit your application by clicking on the certificate. You may be required to submit scanned documents for the purpose for which you filled out the form. Only you will receive money in your bank account if your employer approves the withdrawal request. It typically takes 15-20 days for the funds to be credited to the bank account.
3. How Do I Apply for a Home Loan Using My EPF Accumulation?
To apply for a home loan based on your EPF account balance, follow the steps outlined below:
Step 1: Submit an application to the EPF Commissioner in the format specified in Annexure 1 for a home loan through a housing society.
Step 2: The Commissioner will issue you a certificate detailing your monthly contributions to your EPF account over the previous three months. You can also bring a printed copy of your EPF passbook to show the last three months’ contribution.
Step 3: You can choose between a lump sum payment and instalments.
Step 4: The EPFO pays the housing society directly.
4. Frequently Asked Questions
1. What are the Claim Forms that can be filed from the UAN-Member Interface directly by the employee?
Member can apply for
a. PF Final Settlement (Form19),
b. Pension Withdrawal Benefit (Form10-C) and
c. PF Part Withdrawal (Form31) from the Member Interface directly
2. What are the requirements from the member to be for filing Online Claims?
Member should fulfil following conditions:
a. The member should have activated his/her Universal Account Number and the mobile number used for activating UAN should be in the working condition.
b. Member’s AADHAAR details should be seeded in EPFO database and he should avail OTP based facility for verifying eKYC from UIDAI while submitting the claim.
c. Member’s Bank Account along with IFSC code should be seeded in EPFO database.
d. Permanent Account Number (PAN) should be seeded in EPFO database for PF Final Settlement Claims in case his/her service is less than 5 years.
3. What are the service requirements for online filing of PF Final Settlement Claims (Form-19)?
Member should fulfil following service conditions:
a. Date of Joining and Date of Exit of Member should be available in the EPFO Database.
b. Member should not be working presently under any establishment coverable under PF Act.
c. The Claim should be submitted not before two months after leaving Establishment.
4. What are the additional service requirements for online filing of Pension Withdrawal Benefit Claim (Form-10C)?
Member’s Total Service should be more than 6 months and less than 9.5 years in addition to the conditions mentioned under 3) above for filing Pension Withdrawal Benefit Claim.
5. What are the service requirements for online filing of PF Part Withdrawal Claim (Form-31) (popularly known as Advance cases)?
Member’s Date of Joining should be available in the EPFO database.
6. Is member required to give any document for preferring PF Part Withdrawal claim (Form-31)?
Member is not required to give any supporting document while preferring online PF Part Withdrawal case. Member’s act of preferring the advance claim online will be taken as his self- declaration for having applied for the same.
7. Can member divert the payment to some other Bank Account of his other than one registered with EPFO for preferring online claims?
No. Member can get the payment only into the Bank Account registered with EPFO and being shown to him under his UAN member interface. If the shown Bank Account is closed or if the member wants to use some other Bank Account, member should not prefer the online claim and first get the Bank Account changed through his current employer.
8. Can member apply online for advances where sanctioned amount has to be credited to Agency’s Bank Account directly?
9. Is member required to submit the claim PDF generated on portal to employer /EPFO office?
10. How is the member required to authenticate online claim submission?
Members applying online are required to authenticate their claim submission using OTP sent to their UIDAI registered Mobile number giving consent to UIDAI to share their e-KYC (Aadhaar) credentials to EPFO.
11. What is the process for online claim submission?
Steps in Brief would be as follows:
a. Login to the member interface using UAN credentials.
b. Satisfy oneself that KYC and service eligibility conditions as mentioned against his UAN are correct and complete.
c. Select the relevant claim.
d. Authenticate using OTP received against the mobile registered with UIDAI to complete the online claim submission.
12. Are EPF contributions eligible for tax deductions?
Yes, EPF contributions are tax-deductible under Section 80C of the Income Tax Act, 1961.
13. Can I increase my EPF contributions?
Yes, you can increase your EPF contributions and contribute up to 100% of your basic pay. This is called VPF.
14. Will employer also contribute higher when I do?
No, the employer’s contribution will still remain the bare minimum regardless of you opting for VPF.
15. Do I need employer’s permission to withdraw EPF from EPF?
The new amendments have meant that the employer’s permission is not needed to make the EPF withdrawals.
16. Can I make premature withdrawals?
Yes, on meeting certain conditions, you are allowed to make premature withdrawals, and you need to produce documentary evidence for the same.
17. What are the different types of Advances and service eligibilities against each?
The service eligibility against different types of advances for which member can apply are as under:
|S.No||Type of Advance||Service Eligibility|
|1.||Housing Loan / Purchase of Site / House / Flat or for construction / addition (Para 68B (b)/(c))||60|
|2.||Lockout or closure of factory (Para 68H)||0|
|3.||Illness of member / family (Para 68J)||0|
|4.||Marriage of self/son/daughter /brother/sister (Para 68K)||84|
|5.||Post matriculation education of children (Para68K)||84|
|6.||Natural Calamity (Para 68L)||0|
|7.||Cut in electricity in establishment (Para 68M)||0|
|8.||Purchasing equipment by physically handicapped (Para 68N)||0|
|9.||One year before retirement (Para 68NN)||Age above 54 years|
|10.||Investment in Varistha Pension Bima Yojana (Para 68NNN)||Age above 55 years|