Employees typically file claims for EPF (employee provident fund) withdrawals after retiring or ceasing to be employed. A PF claim request can be submitted online using the EPF withdrawal form. You are eligible to withdraw 75% of the remaining balance in your EPF account after one month of unemployment, and the remaining 25% are available after two months. It's crucial to remember that you may only submit an online withdrawal claim if your UAN and Aadhaar are connected (universal account number).

This blog will provide in-depth explanations on PF (Provident Fund), EPF withdrawal online, and types of EPF withdrawal.

What is Employee Provident Fund?

When an employee retires from the job after completing his or her service, they are provided with lump-sum payments called the employee provident fund. A pension fund, on the other hand, provides both lump sum and monthly pensions. A percentage of each employee's monthly salary is contributed to the EPF scheme.

It is the best way for employees to save a percentage of their salary that will be provided in handy in the event of an emergency or when they retire. Employers with more than 20 employees need EPFO registration by law for employers. 

2 Types of EPF withdrawal

1. Complete EPF Withdrawal

In any of the following circumstances, EPF may be completely withdrawn:

• When someone chooses to retire
• When someone is jobless for more than two months. To withdraw in this circumstance, people need to have an attestation from a gazetted office.

People who have been in their job for two months or more can't withdraw their entire EPF balance when switching jobs (i.e. the interim period between changing jobs).

2. Partial Withdrawal

Following are the conditions when the partial withdrawal is allowable:

Wedding: Individuals must have at least 7 years of service record in order to withdraw EPF for wedding-related expenses. 

Medical Purpose: the claim process does not ask for a minimum number of service years when an EPF withdrawal is made for medical purposes. The maximum withdrawal is the greater of six times the basic monthly wage or the sum of the employee shares plus interest. 

Purchase of House: To be eligible for EPF withdrawal for the purchase or construction of a home, the applicant must have worked for 5 years. 

The following describes the withdrawal limit at the time of building or purchasing a home or piece of land.  

• The basic monthly salary plus a dearness allowance are available for land Up to 24 times
• The employee can possibly receive up to 36 times the minimum monthly salary plus a housing allowance.

House Renovation: EPF withdrawals for home renovation or reconstruction require you to complete a minimum of five years of service. Up to 12 times the employee’s monthly pay plus a depreciation allowance, or the whole cost, or the employee contribution plus interest, are the PF withdrawal limits for home renovation.

Education Purpose: The maximum amount that can be withdrawn for educational purposes is equal to 50% of the employee’s share of the provident fund’s contributions. 

Procedure for EPF Withdrawal Online 

 The steps listed below can be used to select the EPF withdrawal form and submit a claim online:  

Step 1. Log in to the UAN Member Portal using UAN and Password.

Step 2. Select the ‘Online Services’ tab from the first menu bar and select ‘Claim (Form- 31, 19 & 10C)’ from the drop-down menu.

Step 3. The screen will display member details. In addition, enter the last four digits of the bank account number that is linked with your business, then click “Verify”.

Step 4. After the above step, click on 'Yes' to agree to the terms and conditions included in the certificate of undertaking and proceed further.  

Step 5. Then click on the option ‘proceed for online claim’.

Step 6. In order to claim your provident fund sum, select “PF Advance (Form 31). 

Step 7. You will be able to see a new section of the application where you must enter your residential address, the purpose for why the advance is requested, and the amount you need. It is also necessary to note that all options will be highlighted in red if a person is ineligible to withdraw from PF. 

Step 8. Submit your request by clicking on certification.

Step 9. Depending on the purpose you selected on the form, you are required to produce scanned documents.  

Step 10. Your company must approve your withdrawal request before the amount is taken out of your EPF account and put into the bank account listed on the withdrawal form. 

You will also receive an SMS alert at the mobile number you have registered with EPFO. The sum will be paid to your bank account after the claim has been processed. The EPF withdrawal online procedure takes approximately 15 to 20 working days to complete.

Frequently asked questions

1. What is EPF? 

Ans. EPF stands for Employees’ Provident Fund. It is a government scheme that aims to encourage people to save money while they are employed. The EPF hopes to create a retirement corpus for every employee as compensation for their toil and commitment to their professions.

2. Can I withdraw my EPF amount while working?

Ans. No, you cannot withdraw your EPF balance while working in a company, but in certain cases, you will be eligible for Partial EPF withdrawal. 

3. Do I need an employer’s sanction for withdrawing the EPF balance?

Ans. No, you don’t need permission from the employer to withdraw your EPF.

4. What do I need to file an application for an EPF withdrawal claim online?

Ans. You must have - a) an existing UAN number b) Bank details connected with UAN c) PAN and Aadhar details updated into the EPF database. 

5. Can one withdraw 100% EPF balance while working before retirement?

Ans. No, one cannot withdraw the entire sum of EPF balance before retirement. It is provided 100% only after retirement.

Conclusion 

All the employees can benefit from the EPF scheme by saving for retirement. This process involves deducting a percentage of their monthly salary and depositing it into their EPF account. The funds accumulated in the Employee Provident Fund (EPF) account are given to the employees after retirement. So, get your EPF registration from the experts of Online Legal India with the easy process in a short time and enjoy the benefits of it.