PF Withdrawal Procedure - EPF Withdrawal Form, Rules, Status Online

What is EPF?

Employee Provident Fund or EPF, is a scheme under which both the employee and employer deposit a small amount on monthly basis, for the long term benefit of the employee. The amount deposited is nominal and is generally 12% of the employee’s basic monthly compensation + Dearness Allowance. EPF scheme was developed in 1952 to take care of employee retirement needs.

Employees drawing salary of less than Rs 15,000 a month must register under the scheme, while employees drawing more than Rs 15,000 can also join, but with an approval from EPF commissioner.

Generally, employees deposit 12% of their monthly basic compensation towards EPF and the employers contribute the same amount. An employee can make a higher deposit through (VPF – voluntary provident fund) while the employer’s contribution remains the same, regardless of how much the employee is contributing. EPF scheme enjoys tax benefits and the sum accumulated in PF account, earns interest on an annual basis. EPF interest rate is 8.55% for FY 2017-18.

An employee would receive Universal Account Number (UAN) linked to his/her EPF account. UAN is transferable from one employer to another. EPF is a very secure and protected scheme designed to benefit employees at retirement.

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PF Withdrawal Procedure - EPF Withdrawal Form, Rules, Status Online

EPF WITHDRAWAL

When can EPF be withdrawn?

EPF can be withdrawn at various life events. However, employees would enjoy maximum benefits of EPF, when withdrawn post retirement. Partial or complete withdrawal can be made, as per the employee’s requirements, provided they meet the eligibility criteria. Below mentioned are the life events for complete EPF withdrawal.

• At the time of retirement.
• When unemployed for more than two months, needs certification from a gazetted officer.
• When immigrating to foreign countries on permanent or temporary basis. You need to produce documents like visa and other immigration relevant documents.

Below mentioned is the table containing information related to partial EPF withdrawal:

Reason for withdrawal	% of withdrawal	Eligibility
Marriage of self, siblings and children	Up to 50% of employee’s contribution	Should be in service for at least 7 years
Education for self, siblings and children	Up to 50% of employee’s contribution	Should be in service for at least 7 years
For the purpose of purchasing land	24 times the monthly salary	Should be in service for at least 5 years, the property purchased should be registered in the employee’s name (completely or partially owned). A copy of the legal documents of the property must be produced.
For the purpose of purchasing a residential property	36 times the monthly salary	Should be in service for at least 5 years, the property purchased should be registered in the employee’s name. A copy of the legal documents of the property must be produced.
For the purpose of reconstruction/renovation of a residential property	Up to 12 times monthly salary	Property should be registered in the employee’s name. A copy of the legal documents of the property must be produced.
Home loan repayment	Up to 90% of the accumulated amount	Should be in service for at least 10 years, the property purchased should be registered in the employee’s name (completely or partially owned). A copy of the legal documents of the property should be produced.
A little before the retirement	Up to 90% of the accumulated amount	Employee should be at least 57 years old.

EPF withdrawal procedure

Previously, employer’s approval was needed for an employee to withdraw from his/her EPF account. Employees complained on the difficulty in getting the approval and hence EPFO modified the procedure for withdrawal.

Today, there is no need for the approval from employer for an employee to withdraw from his/her PF account, considering the employee has Aadhaar. An employee can apply for withdrawal offline or online.

SEE ALSO: Government Health Insurance Schemes In India

Offline procedure for EPF withdrawal

• You need to download withdrawal composite form with Aadhaar or without Aadhaar by logging on to https://www.epfindia.gov.in/site_en/index.php
• Applying for withdrawal via composite claim form with Aadhaar, needs no approval from the employer. Fill up the form and submit it at the regional EPFO office with relevant documents.
• Applying for withdrawal via composite form without Aadhaar, requires an approval from employer’s side. Fill the form and submit it at the regional EPFO office by attaching the relevant documents.

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Steps to apply for EPF withdrawal online

You need to have your UAN, KYC (Aadhaar and PAN), bank account details and the phone number linked to your UAN for online application submission, for EPF withdrawal. You need to follow the below mentioned steps for online submission of application:

• Log on to https://unifiedportal-mem.epfindia.gov.in/memberinterface/ , login with your UAN and password
• Click on ‘manage’ tab, it will display your information
• Verify your details (Aadhaar/PAN and bank account details)
• Open online services, choose ‘claim form’ from the drop down menu
• Claim form would display employee details, KYC and bank details, verify and click on ‘proceed’
• After clicking on proceed, you will be asked under what circumstances you are applying, choose the suitable circumstance and submit.

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