EPF or Employees’ Provident Fund Scheme is the savings done by the employee for their retirement years. It is the saving scheme where the employee contributes a small portion, i.e., 12% of their basic pay every month and on the other hand, the employers also contribute the same amount in the account. Such contributions together become a corpus at the time of retirement, and it can be used during the retirement years of the employees. However, EPF Withdrawal can also be made earlier to their retirement during the course of their employment under certain circumstances. However, it is essential for the employees to know the procedure and rules involved in withdrawing the EPF amount and how to check the withdrawal status online.
The Rules for EPF Withdrawal
Employees may choose to withdraw their EPF (Employees’ Provident Fund) partially or entirely. Complete withdrawal of EPF is only possible under certain circumstances. This includes:
- When the employee is retiring from their employment.
- When the person remains unemployed for more than two months, but it is essential for the individual to submit a written application proving their unemployment status for more than two months and it needs to be certified by a gazetted officer.
Complete EPF Withdrawal while switching to new job from the old position without remaining unemployed for more than two months is against the rules of EPF and hence it is considered illegal.
Partial withdrawal of EPF is possible only under certain circumstances, and it is subject to certain prescribed conditions which are discussed below.
1. Marriage – Only 50% of the PF can be withdrawn from the employee’s contribution, and the employee needs to be employed for more than seven years on one organization. It can be used only for marriages of self, daughter, son, and siblings.
2. Education – Up to 50% of the employee’s contribution can be withdrawn just after seven years of service, and it can be used for the education of employee or their children after class 10.
3. Purchase of Land or Construction Purpose – For purchasing of land 24 times of monthly wages along with dearness allowance can be withdrawn and for construction 36 times of their monthly wages can be withdrawn plus dearness allowance. The employee needs to be in service for five years, and it can be used for purchasing assets or constructing a house.
4. Home Loan Repayment – Up to 90% of both employee and employer’s contribution can be withdrawn, and the employee needs to be in service for more than 10 years. However, the property needs to be registered in the employee’s name or spouse or jointly.
5. Little Before Retirement – Up to 90% of the accumulated balance can be withdrawn along with other allowance and interest. But, this is only possible after the age of 57, and it must be used solely for the employee’s needs.
How to Apply for EPF Withdrawal?
There are two ways to withdraw the EPF Amount either by:
- Submission of online application
- Submission of physical application for withdrawal
Employees are required to submit the new composition claim form to the respective jurisdictional EPFO office along with the attestation of the employer. Depending upon the rules, you need to decide whether you want to apply for complete or partial EPF Withdrawal.
The online submission is much comfortable, and it gives you the comfort to apply it online. The online submission of the withdrawal form can be done directly by visiting the official website of EPFO. You need to follow few simple steps and submit details to proceed for the online claim. However, before applying online, you need to ensure that the following conditions are met.
- Activated UAN number and mobile number used for UAN activation.
- UAN is linked with KYC, i.e., PAN, Aadhar and bank details along with IFSC code
How to Check EPF Withdrawal Status?
- You can simply visit the regional EPFO office to check the EPF Withdrawl status, or you may check it online. To check the online EPF Withdrawal status got to the website of EPF India.
- Enter the EPF Account number; provide the state code, region code, and the organization code and finally the account number. There will be a field extension, leave it blank.
- You will see a page mentioning complete details of your claims and the withdrawal status online.
This is the procedure on how you can check the EPF Withdrawal status online and the details to submit the respective form to claim the amount.