The Employee Provident Fund (EPF) is a government-backed scheme that aims to provide social security to salaried individuals after retirement. When changing jobs, you can transfer your EPF from your existing employer to your new one. But, if you want to withdraw your EPF after leaving a job, you must wait for two months to apply for a withdrawal.
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According to the rules, EPF subscribers can withdraw 75% of their PF balance if they have been unemployed for over a month. If the unemployment period extends beyond two months, subscribers can withdraw the remaining 25% balance as well.
Adhil Shetty, CEO of BankBazaar.com, said, “EPF withdrawals may be subject to taxation based on your employment duration and other factors. If you withdraw funds from your PF account before it completes five years, the withdrawn amount may be taxed. However, you can avoid this by transferring your EPF account from an old employer to a new employer by submitting Form 31.”
To withdraw the PF amount, your first step should be to check your eligibility. Next, you must ensure that your personal information is updated and your UAN (Universal Account Number) is activated. After that, you can complete the EPF claim form for partial or complete withdrawal. As mentioned above, complete withdrawal is permitted only when an individual retires or remains unemployed for more than 2 months.
Partial withdrawal, though permitted for medical purposes, home loan repayment, marriage, etc. should be utilised only in case of dire need. You can make the withdrawal claim online by filling up the online EPF withdrawal form or the EPF Composite Claim Form. In order to make the EPF withdrawal claim online, your UAN must be activated and should be linked to your KYC (Aadhaar, PAN and bank account details).
Once this is done, you can follow the steps given below to withdraw your EPF online:
Step 1: Sign in to the UAN Member Portal using your UAN and password
Step 2: Click on the ‘Online Services’ tab and choose ‘Claim (Form-31, 19,10C & 10D)’ from the drop-down menu to select the relevant EPF advance withdrawal form
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Step 3: Member Details will be displayed on the screen. Fill in the last 4 digits of your bank account and click on ‘Verify.’
Step 4: Click on ‘Yes’ to sign the certificate of undertaking and proceed further
Step 5: Click on the ‘Proceed for Online Claim’ option
Step 6: Select ‘PF Advance (Form 31)’ for instance, that is, in case you wish to partially withdraw your funds online
Step 7: A fresh section of the form will open, wherein you have to choose the ‘Purpose for which advance is required’, the amount required and the employee’s address (in case of partial withdrawals). It is worth noting that all options for which the employee is not eligible for withdrawal will be mentioned in red.
Step 8: Tick on the certification and submit your application
Step 9: You may be required to submit scanned documents based on the purpose for which you have filled the EPF claim form
Step 10: Once your withdrawal request is approved, the money will be withdrawn from your EPF account and deposited in the bank account that you mentioned at the time of filling out the withdrawal form
You will receive an SMS notification on your mobile number registered with EPFO. Also, once the claim is processed, the amount will be transferred to your bank account. Although the EPFO has provided no formal time limit, the money usually gets credited into your bank account in 15-30 days.
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“This entire withdrawal process typically takes approximately 20-30 days. Once your claim is approved and processed, the EPF amount will be credited directly to the bank account you have mentioned in your UAN details,” said Shetty.
