How to withdraw PF amount?

Employees cannot withdraw the EPF amount until they have retired. However, in special cases this rule does not apply and the amount can be withdrawn. Let’s see how and when EPF withdrawal can be done, including the importance of the Universal Account Number (UAN).

When you received your first salary slip, you must have seen a deduction bracketed for PF. That deduction is your contribution to the Employee Provident Fund or EPF.

EPF is a compulsory scheme instituted in all companies, wherein employees must give a portion of their salary to their retirement fund. The employer also contributes the same amount to the fund, allowing the employees to lead an independent life once they stop working. The amount accrued in the EPF earns an annual interest and serves as a corpus during retirement.

As it is a mandatory scheme, employees cannot withdraw the EPF amount until they have retired. However, as we all come across milestone events that compel us to rely on our savings, there are some cases when this rule to EPF withdrawal is not applicable.

Today, we will discuss when and how EPF withdrawal can be done to meet any urgent needs. but before that, we must understand the Universal Account Number or UAN.

According to the Provident Fund Act, an employee in their lifetime will have only one PF account maintained by the Employees’ Provident Fund Organisation (EPFO), which will be operational even as they switch jobs. This account is called the UAN. It is connected to the employee’s PF account within an organisation, giving them the freedom to change companies without having to do an EPF transfer between them.

When can you initiate EPF withdrawal?

When you are not drawing a salary, it makes no sense to maintain an EPF fund. Hence, you are entitled to the full EPF amount when:

  1. You have retired from the workforce
  2. You are not employed for 2 months or more

There are, however, other scenarios too in which you can make a partial EPF withdrawal from your hard-earned savings. These include:

  1. Marriage – If you have been in service for 7 years, you can withdraw up to half of the employee’s quota of EPF fund for yours or your children’s or your sibling’s marriage.
  2. Education – If you have been in service for 7 years, you can withdraw up to half of the employee’s quota of EPF fund for your education.
  3. Land purchase – If you have been in service for 5 years, you can withdraw up to 2 years of your monthly pay along with the Dearness Allowance to purchase land in your or your spouse’s name or jointly.
  4. House purchase or construction – If you have been in service for 5 years, you are free to withdraw up to 3 years of your monthly pay along with the Dearness Allowance for the purchasing or constructing of a house in your or your spouse’s name or jointly.
  5. Home loan – If you have been in service for 10 years, you can withdraw up to 90% of the entire EPF balance (employer and employee contributions included) for a home loan, provided there is, at least, Rs. 20,000 in the fund inclusive of interest. Further, the property must be in your or your spouse’s name or jointly in both your names and you should be able to produce any documents that the EPFO requests.
  6. House renovation – If you have been in service for 5 years, you can withdraw up to 1 year of your monthly pay for renovating your house, provided it’s in your or your spouse’s name or jointly owned by both.
  7. Early Retirement – Once you reach 57 years of age, you can opt for early retirement and withdraw up to 90% of the balance including the interest.

Documents required for PF withdrawal

The documents required to withdraw money from your PF account are listed below:

  • Form 19
  • Form 10C and Form 10D
  • Form 31
  • Bank account statement
  • Identity proof
  • Address proof
  • A blank and cancelled cheque with IFSC code and account number. Also, you should ensure that the cheque provided by you is a single account holder cheque.
  • Two revenue stamps

What is EPF withdrawal form/composite claim form

The Composite Claim Form (CCF) can be of use if you want to withdraw your PF money partially or completely. It can also be used to withdraw money from your EPS account. There are two types of CCF based on whether you have an Aadhaar number or not. They are — Composite Claim Form ( Aadhaar) and Composite Claim Form (Non- Aadhaar).

If you have submitted Form-11 to your employer, you can elect to fill in the Composite Claim Form (Aadhaar) form. By submitting the Form 11, your bank details and Aadhaar number are already linked with your UAN and its activated. 

The form along with a cancelled cheque can be submitted at the EPFO office. Attestation of the claim form from the employer is not required for the submission. The payment will be credited to your UAN linked bank account.

What is the process for EPF withdrawal?

To able to draw money from your EPF fund, you can do one of the following:

  1. Submit a physical application for EPF withdrawal
  2. Follow the EPF withdrawal online procedure

EPF withdrawal with a physical application

You can get the form from the EPF portal and print out and fill the physical application.

pf withdrawal

The composite claim form with your Aadhar details does not need your employer’s attestation, but the Non-Aadhar form will need it. Once you have filled the form, you need to find your jurisdictional EPFO office and submit it there.

EPF withdrawal online

Step 1) To initiate EPF withdrawal online, you first need to activate your UAN at the UAN member portal.

epf withdrawal online

Step 2) Then, input your UAN, your password and the Captcha to sign in.

pf withdrawal process

Step 3) Once you have logged in, check if your KYC details are updated in the Manage tab.

epf withdrawal online

Step 4) Fill all the relevant details, then save, and make sure they are verified.

pf withdrawal

Step 5) On the navigation menu, from the ‘Online Services’ dropdown, select the ‘Claim’ option.

how to withdraw pf online

Step 6) On the Claim form, you will be asked to verify the last four numerals of your bank account number.

employee provident fund withdrawal

Step 7) Once you have verified the account details, you will get the following confirmation message:

How to withdraw EPF Online

Step 8) Select Yes, and hit the ‘Proceed for Online Claim’ button.

Step 9) In the form, only those options that are applicable to you will show. From the “I want to apply” tab, select the claim you need – full EPF settlement/pension withdrawal/EPF part withdrawal, etc.

Step 10) Select PF Advance (Form 31) and provide the details of the amount you need, the reason to withdraw, etc.

Step 11) Click on the certificate to submit your application.

Once you have submitted the application, the EPFO may reach out to you for further documents or scanned copies. Then, the employer must authorise the request for the EPF amount to be credited in your account. The entire process, including verification and approvals, can take up to 20 days.

Online services failure causes

Here are some important reasons why online EPF withdrawal services fail.

  1. If the bank account you wish the pf amount to be credited is different from the bank account registered with the EPFO, you will need to link your present bank account through your employer before attempting the EPF withdrawal procedure online.
  2. Your UAN portal and registered Aadhar mobile number should be the same and in service as you will receive the authentication number on that number only. If the number is no longer in service, change your mobile number on the Aadhar database first.
  3. Ensure your EPFO database or the UAN member portal contains the exact same details as the Aadhar database. If not you will have to do the EPF process of withdrawal in the offline mode.

Benefits of EPF withdrawal online

Withdrawing EPF via an offline process can be a tiresome and time-consuming task. Long queues and employer visitations can make the process even worse. Withdrawing EPF via an online process is more beneficial than the offline process. Here are some of the major advantages of withdrawing EPF online:

  • Seamless processing
  • Saves time visiting the EPFO office
  • Minimal processing time
  • No need for previous employer verification

Taxation on EPF withdrawal

The money withdrawn from EPF accounts can be exempt from tax under certain conditions. They are:

  • Contribution period must be over 5 years
  • There should be no break in the 5 years. 
  • Tax deducted at source (TDS) is deducted on the premature withdrawal only if the amount exceeds Rs. 50,000. 
  • TDS deduction will be 30% plus tax if the employee hasn’t updated his/her PAN card. It is 10% otherwise. 
  •  If their total income is not taxable, the employee should submit the Form 15H/15G as a declaration
  • If the PF fund is transferred to NPS, he /she won’t be liable to pay tax on withdrawal 
  • The liable tax depends on the employee’s salary in the withdrawal year.
  • Employees who have claimed tax exemptions on EPF for Section 80C are not eligible for tax exemptions. They should pay tax on employee’s contribution, employer’s contribution and interest on each deposit.

EPF withdrawal – FAQs

  1. Whether the employee is required to be registered on Member Portal to file the Online Transfer Claim online? 
    Yes, employees should register on the Member Portal to file the Transfer Claim online.
  2. What are the prerequisite conditions to file the Transfer Claim online?
    (a) Member IDs (Both previous and present)
    (b) The employer should have registered the digital signature certificate of his authorized signatories.
  3. Can I withdraw PF amount without PAN?
    Yes, but in such cases the amount is subject to TDS deduction of 30% .
  4. Is there any enquiry number for EPF withdrawal?
    Reach out to EPFO experts on their Toll Free Customer Care Number- 1800 118 005.
  5. Can I withdraw money from EPF for the same reason more than once?
    You can withdraw EPF amount for a similar reason for maximum 3 times.

Latest news related EPF withdrawal

EPF Contributions To Be Deducted at 24% from August 1, 2020

August 01, 2020: Monthly EPF contribution brought down to 20% for May, June and July 2020 will now go back to its erstwhile figure of 24% starting August 1, 2020. The contribution — split equally at the rate of 10% between the employer and employee — was introduced to ease the financial burden caused by the pandemic on both the employers and employees. According to the labour ministry, the move — meant to increase employees’ take-home pay and help employers save money — was to benefit 4.3 crore employees/EPF members employed 6.5 lakh establishments. The ministry’s FAQ also stated that the employer will also have to pay 4% as a part of the employees salary if EPF contribution is as part of the CTC. For those who have opted for VPF, unless it is stopped, the VPF deduction and higher EPF will be deducted from the salary starting August 2020.


June 15, 2020: Employees Provident Fund Organisation (EPFO) has replaced the existing system of geographical jurisdiction of claim processing with multi-location claim settlement facility. The labour ministry in its statement said that EPFO offices can now settle claims from any of the regional offices irrespective of the location. This move allows offices with lesser workload to share the burden of other offices which have recorded a high number of pending claims and settlements brought on by the Covid-19 advance. This initiative processes online claims such as PF, pension, transfers, and partial withdrawals.


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One of the prime contributors for this blog. I have 5 years of experience in SEO, Digital Marketing, Content Marketing, and have knowledge in topics like Tax, HR, Recruitment & Staffing. A free-spirit with a passion for travelling & music.

Comments

  1. comment-author
    Keenan

    I am really inspired along with your writing skills and also with the format to your blog. Is this a paid subject or did you modify it your self? Anyway stay up the excellent high quality writing, it is rare to see a nice blog like this one nowadays.

  2. comment-author
    Prayag

    Hi Subin, nice job,thanks!
    Pl help me with the following.
    My situation:
    My UAN seems yet to be ACTIVATED. This I learnt while trying to reset my password on the member sewa portal of EPFO.
    I don’t remember the mobile number I’d linked my EPFO account with.
    I’m currently out of work for more than 2 months now.
    I do remember having given my previous employer my Adhaar dtls.
    Bank details being the same as for my salary credits.
    Is there a way to withdraw my PF amount online or I’ll have to go through the rigmarole of taking a trip to my previous employer’s office located in a different city and then perhaps having to submit my application at an EPFO office?

    1. comment-author
      Rishabh Ranjan

      Hi Prayag,

      You need to activate your UAN in order to claim your PF dues online. As for the mobile number, please follow the instructions below:

      To change your mobile number, you can visit this page, enter the UAN, Captcha, and click on Forgot Password and follow the instructions. Here’s a detailed blog on how you can change your mobile number.

  3. comment-author
    Deepti Kanchan

    any way of withdrawing PF amount without Adhar OTP. I have lost my phone number and cannot get the OPT. Residing in US so cannot update the phone number.

    1. comment-author
      Rishabh Ranjan

      Hi Deepti,

      The option to change the mobile number is available and enabled for employees on the UAN portal. However, Aadhaar OTP is must if you wish to claim PF online. You can try through your family members residing in India or can directly submit the physical claim form at the PF office with a cover letter stating that there is an issue with Aadhaar OTP and that you’re unable to fix it as you reside outside the country.

  4. comment-author
    Dr.C.Narasimham

    Good morning Subin,
    I have a query about my previous pf account which is unfortunately not linked up to the existing pf account number. That means i have nearly 2 pf accounts maintained in my career. There was a transit time of almost 8 years. Now when I look back I got to know whether the erstwhile employee service of 3+ years can be counted to meet the criteria of 10 years minimum service for the eligibility of pension. I do have the ref of previous employee ID and pf details too. Where as a portion of epf was credited to my bank of then itself when i was relieved in 2011 August. Plz suggest.
    Than you
    Dr.C.Narasimham

    1. comment-author
      Rishabh Ranjan

      Hello Dr. C. Narasimham,

      You will be eligible for pension by transferring the old pension contributions to your current employer’s PF account.

      But keep in mind that for this to work, you mustn’t have withdrawn pension from the previous employer. Moreover, the total years of service rendered in the current establishment must exceed 7 years.

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