How to Withdraw Money from EPF (Employees’ Provident Fund)

EPFO elaborated as the Employees Provident Fund Organization manages EPF service. EPF is a brief term for Employees Provident Fund. It is an insurance program for Indian workers, initiated in 1952. It provides retirement benefits, including pensions. A fixed percentage of the deposit is deducted from base pay and dearness allowance to the EPF account of the holder. Currently, the employer contributes 12% of base pay and DA, from which 3.67% goes to the employee pension scheme and 8.33% to the employee provident fund. Employees can visit the EPFO website for an EPFO balance check. For specific reasons, EPFO allows EPF withdrawl of a limited amount, a maximum of INR 7 lakhs.

EPF Account Money Wihdrawl Procedure

Withdrawn money from the EPF account is limited to a certain amount, depending on the reason for EPF withdrawl. Before applying for withdrawal, employees must consult with EPF consultants or get updated via EPFO websites. The employee needs to follow the steps to withdraw the money after the EPFO balance check:

  • Check Eligibility Criteria

Employees must check the withdrawal eligibility criteria. EPFO allows withdrawal in certain situations. It includes medical emergencies, retirement, and resignation.

  • Download Withdrawl Form

EPFO provides relevant forms based on the reasons for withdrawal. The employee needs to download the form and fill in the details. The details include personal information, EPF account details, EPFO balance check, UAN number, and the reason for EPF withdrawl.

  • Attest the Form

If the employee is working, the employer must attest to the form. In case of unemployment, the form must have the signature of a gazetted officer.

  • Form Submission

Form submission requires the submission of certain documents. Required documents include bank details and identity proofs submitted to the closest EPFO office.

  • Tracking of Application

Through the EPFO website, the employee can track the application’s status.

  • Amount retrieval

If the EPF withdrawl request is processed and not rejected, EPFO will transfer the money to the employee’s bank account.

Advantages of the EPF Scheme

Here’s why the EPF scheme is advantageous for employees. 

  • Retirement Benefits

EPF scheme collects money over time to build up retirement benefits. After a predetermined number of years of working or retirement, an employee can withdraw their amount.

  • Loan Facilities

The employee can apply for a loan facility on their EPF account balance. It includes personal loans, house loans, and educational finance.

  • Insurance Benefits

Life insurance facilities are offered to the employees. Employees can sanction loans up to two times their base pay with a maximum reach of up to 7 lakhs.

  • Tax Benefits

As per the income tax law, EPF accounts transactions are tax deductible. It is applicable for up to INR 1.5 lakh annually. Furthermore, no interest is applied to the EPF account.

Changes in EPF Schemes

While you get familiar with the process of withdrawing money from EPF, you must also learn about the recent changes. 

  • Online Service

EPFO introduced numerous online services to ease the procedure of account accessibility. Employees can take advantage of digitally filing claims, online registration, and EPFO balance check.

  • Auto-Transfer of EPF Account

EPFO introduced an auto-transfer facility for the employee’s convenience for a smooth transition from one job to another. It ensures EPF balance would not be lost in switching jobs.

  • Universal Account Holder

A unique number, called UAN, is assigned to each EPF account holder. UAN is helpful for quickly accessing the account, monitoring the details, and EPFO balance check. It is needed for EPF withdrawl.

Conclusion

EPF service is a potential security program to benefit the employees. It provides several benefits, including retirement, tax, and loan benefits. EPFO made recent changes to provide ease and convenience for EPF account accessibility. Employees can receive updated information from the EPFO website, including the EPFO balance check. Depending on the reasons, limit-based EPF withdrawl can take place. Getting updates on EPF rules and regulations or consulting a specialist before applying for money withdrawal is advisable.