EPF, an Employees’ Provident Fund or Provident Fund (PF), is a savings or retirement scheme for employees working under EPFO registered organization. In this scheme, an equal contribution of the amount is made by the employer and employee on a monthly basis. By the time of retirement or during service, the employee can claim and withdraw the payment with a fixed interest rate.
Also, the EPFO balance check is used to view the available balance in the EPF account. In this article, let us explore the EPF claim process and conditions to withdraw the amount.
EPF Claim and Conditions
EPF is an equal contribution of employee and employer for employee’s welfare. 12 per cent of an employee’s basic salary plus dearness allowance (DA) is contributed towards their EPF account. The Interest rate is 8.15% p.a. for the financial year 2023-24. EPFO balance check allows the employee to check the available balance through EPFO Employee Login.
An employee can choose to withdraw their EPF amount entirely or partially. Entire EPF claim withdrawal is applicable only under the following two circumstances:
- When an employee retires
- When the employee of the organization is unemployed for more than a month, 75 percent of the EPF amount can be withdrawn, and the rest of 25 percent if the unemployment period exceeds more than two months
An individual cannot withdraw the EPF balance entirely while switching employers unless the interim period between changing jobs is for two or more months. Employees can use EPFO balance check to plan their PF claim and withdrawal.
EPF balance can be withdrawn partially under some emergency circumstances listed below:
- In a Medical emergency for the employee or his family, the total employee’s share and interest or six times of basic salary can be claimed. There is no maximum service period required.
- Marriage or education of the employee or their family members, up to 50% of the employee’s contribution to EPF can be claimed. They must have completed 7 years of service to avail of this claim.
- For land purchase or construction of a house in the employee’s name or jointly with the spouse, up to 24 times for land and up to 36 times for house of monthly basic salary plus dearness allowance. They must have completed 5 years of service to avail of this claim.
- For home loan repayment, the property registered in the name of the employee or spouse or jointly with the spouse can get up to 36 times of basic salary plus dearness allowance or the total outstanding principal and interest on the housing loan. They must have completed 10 years of service to avail of this claim.
- Partial withdrawal of up to 90% of accumulated balance with interest can be withdrawn before retirement once the employee’s age is 58 years, and withdrawal must be before one year of retirement.
How To Withdraw EPF Balance
EPF balance can be claimed by submitting a physical or online application.
For physical application, a composite claim form ( Aadhaar/ non- Aadhaar) has to be downloaded to withdraw the EPF balance. You have to fill and submit the form without the attestation of the employer to the respective jurisdictional EPFO office.
EPFO balance check helps claim EPF based on the available balance. The online EPF claim process is less time-consuming and more comfortable. Apply withdrawal of EPF by EPFO Employee Login in the portal. Ensure the Universal Account Number (UAN) and the registered mobile number are active. UAN must be linked with your KYC, i.e., PAN, Aadhaar, and the IFSC code. Follow the steps below:
Step 1: Visit the UAN portal.
Step 2: EPFO Employee Login with your UAN and password. Type the given captcha and sign in to your account.
Step 3: Choose the ‘Manage’ tab and check whether KYC details are verified correctly.
Step 4: After verifying the KYC details, select the ‘Online Services’ tab and choose the ‘Claim Form (31, 19 10C & 10D)’ from the menu.
Step 5: Your personal and KYC details are displayed. Type the bank account number and enter ‘verify’
Step 6: A message will appear to sign the certificate of the undertaking; click ‘Yes’ and then click on ‘Proceed for Online Claim’
Step 7: Select the claim you require (Full EPF settlement or partial). And then, select the ‘PF Advance (Form 31)’ for EPF withdrawal. Also, provide a reason for withdrawal, the amount required, and other details.
Step 8: Now submit the application and other scanned documents. Once the employer approves the withdrawal request, the PF money will be credited to your bank account in 15 to 20 days.
Conclusion
EPF balance amount can be withdrawn entirely or partially during your service period or by your retirement under the mentioned conditions. An employee can apply to the EPFO office or by EPFO Employee Login and EPFO balance check through the portal.