About EPF & EPFO
EPF &EPFO was established in the year of 1952 by the Government of India, this EPFO has begun to help the private and public sector employees at the time of their retirement or in future needs.
EPF or PF is also called the Employee Provident Fund. It is one where the employees can save a small portion of their salary i.e. 12% of their basic pay every month. At the same, a matching amount is contributed by the employer. Such a contribution, together, form a corpus. This is can be helpful for the employee to use this in their future needs. EPF withdrawal by employees can happen, however, be done earlier itself i.e. during their employment.
Ministry of Labour and Employment, Government of India is handling the EPF (Employees’ Provident Fund) , the EPFO launched its own portal to make easier all EPF processes such as –
checking the status of their PF account,
can do the transfer from one PF account to another,
making withdrawals through online or manually (partial or complete),
taking a loan against their PF, etc.
The Employees’ Provident Fund has launched the UAN (Universal Account Number)
Latest PF Withdrawal Rules 2017-2018
EPFO has listed PF withdrawal rules. They are as follows.
- EPF Withdrawal is not Permitted During the Service
- If the person wants to withdraw before completion of 5 years of continuous service are subject to tax. That said, the amount will be taxable in the current financial year and that to 30% of the principal amount and the interest accrued
- After completion of 5 years of continuous service in the EPF is tax-free.
- Before completion of 5 years if the employee submitted his/her PAN details to the EPFO then 10% TDS (tax deducted from source) will be applicable.
- If in case the employee was terminated or is unemployed because of ill-health and so on, withdrawals will not attract tax.
- Funds transferred from one’s PF account towards the National Pension Scheme (NPS) will not under tax when one makes a withdrawal.
- When the employee shifts jobs and in the process has a different PF account, it will be considered as continuous service only there is no gap in contributions.
- Composite Claims Form used by the Employees to make a partial withdrawal or a final settlement claim.
Models of PF Withdrawals
There are three different models of PF withdrawals on the EPFO member portal. They are:
- PF final settlement
- PF partial withdrawal
- Pension withdrawal benefit
People can make the above-listed withdrawals on the EPFO member portal with the attestation of their employer if they have linked their Aadhaar card details with their UAN.
Procedure for EPF withdrawal
Withdrawal of EPF can be done either by:
-Manual withdrawal (Physical submission of application) OR
-Online withdraw process
With the changes made by the Employees’ Provident Fund Organization now, members need not attest of their employer to make a partial or complete withdrawal. All that the member must ensure is that his/her UAN is linked with their Aadhaar card details. The EPFO has also released the Composite Claims Form, which can be used to request for a partial or complete withdrawal. Members can easily do them withdraw by the process of making a withdrawal online either on the EPFO member portal or on the UAN portal.
Manual withdraw Process (Physical submission of application)
For this, one can download the new composite claim (Aadhar)/ composite claim form (Non-Aadhar) from here :
Without attestation of employer, the new composite claim form (Aadhar) can be filled and submitted to the respective EPFO office
with the attestation of the employer, the new composite claim form (Non-Aadhaar) shall be filled and submitted to the respective EPFO office.
Online Withdraw Process
To apply for withdrawal of EPF online through EPF Portal, make sure that the following conditions are met:
- UAN (Universal Account Number) is activated and Register mobile number which was linked with UAN and should be in working conditions it will receive the OTP at the time withdraw
- UAN is linked with KYC i.e. Aadhaar, PAN and bank details along with the IFSC code. The KYC details should be updated.
- The PF member should also link his/her Aadhaar card details with their PF account.
- The member’s bank account details and the bank’s IFSC code must be integrated as well.
Apply EPF Balance Withdrawal Online (EPFO Portal)
EPFO member portal is facilitating for employees to claim their PF withdraw through online below are the steps:
- Visit the EPFO member portal.
- Log in using your UAN and password
After login into UAN portal to the View tab under that choose the Passbook option then it will show like this
Passbook available at www.epfindia.gov.in >> Our Services >> For Employees >> Member Passbook
- Choose the “for employees” tab. here you must select the member id there you can see passbook
- Now go to the UAN portal then click on the “manage” tab and check your KYC details to ensure they are correct.
- Click on the “Online service” tab to proceed with the withdrawal if all the KYC details KYC details such as Aadhaar, PAN and bank details are correct and verified or not.
- Once the KYC details are verified then go to the tab Online Services’ in the drop-down menu select an option ‘Claim’ from’.
- The ‘Claim’ screen will display the member details, KYC details such as Aadhar, Bank details should verify the account details which you have entered, Pan card and other service details. Click on the tab ‘Proceed for Online Claim’ tab on the claim screen that includes one’s KYC and PF details.
- On the “I want to apply for” option, choose the type of withdrawal you want to make -final settlement, partial withdrawal, pension withdrawal, etc.
- Once you select the type of claim you want to make, fill in the composite claims form and authenticate using your Aadhaar card details.
- Enter the OTP sent to your registered mobile number.
- you can check your claim status by clicking on the “track claim” tab Once your claim for a withdrawal or final settlement has been made.
When an employee switches the job
- Employee changed his job and wants to transfer the account, form 13 should be applied.
- If an employee leaves an organization and doesn’t join another, He/she can make a PF and pension fund claim using the composite claim form (Aadhar/Non-Aadhar).
- If the employee above the age of 58, and has completed 10 years of eligible service, he/she can make a PF claim using the composite claim form (Aadhar/Non-Aadhar) and a pension claim using Form 10D.
When an employee leaves an organization due to some physical disability
- He/she can make PF Claim using composite claim form (Aadhar/Non-Aadhar).
- By using Form 10D then can make pension.
- If the employee above the age of 58, and has completed 10 years of eligible service, he/she can make a PF claim using the composite claim form (Aadhar/Non-Aadhar)
When an employee is deceased
- If the employee deceased before the age of 58 while still in service, then the nominee/heir/beneficiary can apply for the
-submit Form20 for PF settlement,
-Submit Form10D for a monthly pension,
-and EDLI amount with Form 5IF.
- Employee deceased after the age of 58 and still had completed 10 years of eligible service, the nominee/heir/beneficiary can claim
-submit Form20 for PF settlement,
-the pension using Form 10D,
-and the EDLI (Employees’ Deposit Linked Insurance) amount using Form 5IF.
- And other situation like after the age of 58 and had not completed their 10 years of eligible service, the nominee/heir/beneficiary can make
-the PF settlement using Form 20,
-By using the composite claim form (Aadhar/Non-Aadhar) can withdraw the pension,
-and claim the EDLI amount using Form 5IF.
Reasons for PF withdrawal:
When the employee wants to withdraw their amount there would be proper reasons to show then they can make a complete or partial withdrawal.
These are criteria’s where an employee can do withdraw his PF:
- A little before retirement.
- If he/she needs to fund their house construction or pay their home loan.
- Medical Treatment.
- At the time marriage occasion
- To cover education expenses.
- If they have been unemployed for a time span of more than 60 days or two months.
- If they wish to move permanently abroad.
- If a female employee is resigning their employment due to the reasons such as pregnancy, childbirth, getting married, etc.
Below are the guidelines with PF withdraw Limit
|Particulars of the reason for withdrawal||PF Withdrawal Limit||No of years of service criteria||Relations|
|Purchase of land/purchase or construction of a house||90% of PF balance||3 years||The asset i.e. land/ the house should be in the name of the employee/ spouse or Jointly.|
|Home Loan Repayment||90% of PF balance||3 years||The PF account holder and spouse or joint|
|House renovation or alteration||Up to 12 times of the monthly wages||5 years from completion of the house||The PF account holder and spouse or joint|
|Marriage||Up to 50% of employee’s share of contribution to EPF||7 years||For the marriage of self, son/daughter, brother/sister|
|Medical treatment||6 times of his or her monthly salary or total corpus (whichever is lower)||Not required||The PF account holder, parents, spouse or children.|
|Education||Up to 50% of employee’s share of contribution to EPF||7 years||For the education of either himself or his children after class 10|
|Early Before retirement||Up to 90% of accrue balance with interest||Once he/she reaches 57 years (as per recent amendment)||For himself/herself|