The EPF (Employee Provident Fund) is a retirement savings plan offered by most employers in India. You can contribute up to 15% of your salary to the fund, which is then invested in various financial instruments such as stocks, bonds, mutual funds, etc. Once you retire, you get back the amount contributed plus interest.
In case you are wondering what the EPF withdrawal facility is, here is a brief description from the EPFO website: “The Employee Provident Fund (EPF) is a social security scheme which provides provident fund benefits to every employee registered under the EPF Act,
About Employers Provident Fund Organisation
EPFO is one of the largest social security organizations in the world in terms of the number of account holders and volume of financial transactions that it carries out. Thus, at present, it maintains 24.77 crore accounts (Annual Report 2019-20) belonging to its members.
The Employees’ Provident Fund came into existence on 15 November 1951 by the promulgation of the Employees’ Provident Fund Ordinance. Thereafter, the Government replaced it with the Employees Provident Fund Act, of 1952.
The Employees’ Provident Fund Bill was introduced in Parliament in the year 1952. It was a Bill to provide a Provident Fund for Employees in Factories and other Establishments.
Further, this Act is now said as the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. Similarly, this Act extends to the whole of India.
The Central Board of Trustees, Employees’ Provident Fund, consisting of representatives of Government (Both Central and State), Employers, and Employees looks into the ACT and scheme framing policies.
Types of EPF Accounts
The EPF account has two types of accounts – one for regular contributions and the other for lump sum contributions. Regular contributions are deducted from your pay every month and are added to your EPF account. Lump sum contributions are paid once at the beginning of the year and are credited to your EPF account immediately.
EPF Withdrawal Process
Withdrawing your money from an EPFO account is easy. All you need is your Aadhaar number and your bank details.
Time needed: 1 hour and 5 minutes
Steps to apply for EPF withdrawal online
- Go to the EPFO website.
- Log into your EPFO account by entering your UAN and password
- Click on ‘Online Claim Form’ under the ‘Online Services tab
You may have to verify the bank account number if you are not able to proceed with the claim process.
- Click on Proceed for Online claim button
- Select I want to apply for Advance
In the claim form, under the ‘I want to apply’ tab, select the claim you require i.e. Full EPF withdrawal, EPF Part Withdrawal (Loan/Advance), or Pension Withdrawal. If the member is not eligible for any service like PF withdrawal or pension withdrawal due to service criteria, that option will not be shown in the drop-down menu.
- Click on the certificate and submit your application
You may be asked to submit scanned documents for the purpose for which you have filled the form. The employer has to approve the withdrawal request and only then you will get the money in your bank account. It usually takes 15-20 days for the money to be credited to the bank account.
Tips for Withdrawal EPF
You should not withdraw your EPF amount unless there is an emergency of funds. This is because EPF is providing more than an 8% yearly rate of interest on the total contribution. This means you are getting a compounded rate of interest every year which multiplies your available fund with EPFO.
For eg., if you have a 5 lakhs amount in your account as of 30th November 2022, then after one year you will get a credit of 40,500/- interest in your account, just for holding this amount. The interest is calculated by considering the 8.1% rate of interest.
Frequently Asked Questions
Yes, you can withdraw your EPF online through your UAN website.
EPFO allows the withdrawal of 75% of the EPF corpus only after 1 month of unemployment. The remaining 25% can be transferred to a new EPF account after gaining new employment. 100% can be withdrawn after 2 months of unemployment.
Yes, you can withdraw with certain limitations.
Yes, this is possible now.
On the EPF you get compounded interest, therefore it is not advisable to withdraw until you get a good rate of interest.
Last updated on 07.12.2022