Employee Provident Fund or EPF, also known as PF, is a Central government backed scheme under which a salaried employee compulsorily deposits a small portion of his / her income each month, with the employer matching the contribution of the employee. Employees deposit 12% of their basic pay + dearness allowance, to the EPF account. EPF is an excellent investment for retirement.
EPF account earns annual interest which is much higher than the interest offered on a savings bank account, FD or even PPF. You get a Universal Account Number or UAN which is linked to the EPF account. UAN is transferable across employers.
The Employees' Provident Fund Organization, EPFO, is responsible for assisting the Central Board of Trustees, a statutory organization framed by the Employees' Provident Fund and Miscellaneous Provisions Act, 1952. EPFO is administered by the Ministry of Labor and Employment, Government of India. EPFO is headquartered at New Delhi, the capital city of India. The EPFO has many regional offices spread across the length and breadth of India.
To earn the maximum benefits of EPFO, you must refrain from premature withdrawal. Withdraw EPF at maturity. However, you can withdraw EPF on some grounds as per EPFO withdrawal guidelines.
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To withdraw EPF, you must meet certain eligibility criteria. You can withdraw EPF on the following grounds:
As mentioned above, you can withdraw from EPF to fund various life events. The table below summarizes various eligibility criteria for EPF withdrawal:
Linking of Aadhaar number with UAN has eliminated the need of employer’s approval for EPF withdrawal. EPFO has issued UAN for all employees who have enrolled under EPF post 2014. EPF claim Form 19 is necessary for those employees who don’t have UAN. Those employees who don’t have UAN can contact regional EPFO offices for issue of UAN.
Once you have submitted an application for EPF withdrawal, you can track the claim status on the official website of EPFO. To track claim status, you must follow the below mentioned steps:
Below mentioned are the benefits of EPF withdrawal online:
If you are a salaried employee, then you must be familiar with the Employee Provident Fund, popular called EPF. Out of your basic salary, 12% is compulsorily deducted and added to your EPF account. Your employer makes an equal contribution towards your EPF. The money in the EPF is managed by the EPFO.
Any Company with more than 20 employees has to register with the EPFO as per laws. EPFO has more than 6 Crore subscribers. Currently, EPF interest rates are at a 5 year low of 8.55%. You will soon see ETF (Exchange Traded Fund) units in your PF account. EPFO had started investing money in ETFs way back in August 2015. EPFO will raise the equity investment limit to 25%, especially for subscribers who earn a high salary.
Your money invested in the stock markets via ETF is managed by SBI Mutual Fund, UTI Mutual Fund and CPSE (Central Public Sector Enterprise).
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For EPF withdrawals above Rs 10 Lakhs, online filing of claims is compulsory. EPFO has also made it mandatory to file online claims for withdrawals of above Rs 5 lakh under the Employees Pension Scheme 1995. Let's understand the EPF Online withdrawal Process in a simple manner.
Before you move to the EPF Online withdrawal Process, make sure that:
SEE ALSO: EPF Interest Rates Slashed?
STEP 1 : You must first log on to the UAN Portal.
STEP 2: You go to the "Manage Tab" and verify if KYC details like Aadhaar, PAN and bank details are correct.
STEP 3: After you verify KYC, you select the claim option from the Online Services Tab. On the screen you will see, Member, KYC and other Service details.
STEP 4: You hit the Proceed For Online Claim tab and submit your claim form.
STEP 5: You select the appropriate criteria under, "I Want To Apply For" field. Only eligible options will be shown in the drop-down box.
STEP 6: After you select the relevant claim, a detailed form will be shown to you. You must fill the form online, and authenticate using the Aadhaar OTP to submit your claim.
STEP 7: EPFO will obtain KYC (Aadhaar) details from UIDAI, and process your online PF claim. Your bank account gets credited with the claim amount.
STEP 8: You can track the claim status through, "Track Claim Status", under the 'Online Services' menu.
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EPF is an excellent investment which enjoys the EEE benefit. Your contribution to the EPF is tax deductible up to Rs 1.5 Lakhs a year, under Section 80C. The interest you earn and the amount at withdrawal are tax-free.
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