Employers are required to provide their eligible workers with a retirement savings plan known as the Employees’ Provident Fund (EPF), often known as the Provident Fund (PF). Employees will be able to access the fund’s principal when they retire.
According to the rules of the EPF, workers must put 12% of their basic pay into the fund every month. The company matches the employee’s contribution to their PF account. Funds kept in an EPF account earn interest every year. The withdrawal of an employee’s EPF balance is possible upon retirement. Conversely, this article will teach you to access your EPF Partial Withdrawal.
What is EPF?
A contribution-based savings plan, the Provident Fund (PF), allows employers and employees to combine their assets to cover retirement expenses. Although there are certain limitations surrounding withdrawals from the Provident Fund, the employee does have access to or may withdraw the corpus.
The Employees’ Provident Fund Organisation is a statutory body that manages the Employee Provident Fund in India, providing a safety net for workers in India’s organised sector.
How to do EPF Partial Withdrawal?
There are typically two options for withdrawing EPF:
- Physical application
- Online application
Physical Application
You have the option to download the Composite Claim Form (non-Aadhaar) or the Composite Claim Form (Aadhaar) in order to access your EPF money.
Composite Claim Form (Aadhaar)
You need to seed your Aadhaar and bank details on the UAN portal before you can activate your UAN and utilize the Composite Claim Form (Aadhaar).
Without obtaining your employer’s permission stamp, fill out the form and submit it to the EPFO office in your area.
Composite Claim Form (Non-Aadhaar)
Use the Composite Claim Form (Non-Aadhaar) if the UAN system does not already have your Aadhaar and bank details seeded. Together with an employer’s attestation, submit the filled-out form to the relevant EPFO office in your province.
Online Application
With the new partial withdrawal of EPF amount, the EPFO has made things easier and faster for its members.
Criteria Needed
To make a withdrawal request using the EPF site, you need to meet these conditions:
- Verify that the mobile phone that activated the Universal Account Number (UAN) and the UAN itself are both fully operational.
- Your Know Your Customer (KYC) document, which is linked to your UAN, includes your Aadhaar, PAN, bank details, and IFSC number.
After you’ve met the conditions indicated above, your previous employer doesn’t have to sign off on your EPF partial withdrawal online request.
Steps to Apply For EPF Withdrawal Online on UAN Portal
- Head over to the UAN homepage first.
- Inputting your UAN and password is the next step. After you’ve entered the captcha, click the button to sign in.
- Choose “KYC” from the “Manage” option. Your Aadhaar, PAN, and bank details’ validation status may be seen there.
- After confirming the Know Your Customer details, going to the ‘Online Services’ page and selecting ‘Claim (Form-31, 19 10C & 10D)’ from the drop-down menu is the next step.
- The next screen will show details about the member’s data and the Know Your Customer (KYC) and other services. Choose “Verify” after you’ve entered your bank details.
- The next step involves signing the undertaking certificate by selecting “Yes” to proceed.
- Choose “Proceed for Online Claim” thereafter.
- A full EPF settlement, an EPF component withdrawal (loan/advance), or a pension withdrawal are the three types of claims that may be selected under the ‘I Want To Apply For’ tab of the claim form. If the member does not fulfil the service criteria, they cannot access the option to withdraw money from their PF or pension using the drop-down menu.
- Decide on “PF Advance (Form 31)” as the method of the EPFO member portal for advance partial withdrawal. The employee’s address, the required amount, and the rationale for the advance should also be included.
- Click the certificate to apply. Once you finish filling out the form, you could be asked to provide scanned documents to back up your claim.
EPF Withdrawal Rules 2024
The EPF is a joint fund that receives contributions from both the company and its workers. You need a valid cause to withdraw money from an EPF account. When withdrawing funds from an EPF, it is essential to follow these EPF partial withdrawal rules:
- With the EPF, you can’t take money out when you’re working; that’s the only time you can do so, unlike a bank account. It is possible to apply for EPF part withdrawal
online in cases of extreme need, such as when paying for medical care, college, a house, or building a structure.
- One year before to retirement, individuals who are 54 years old or older are allowed by EPFO to withdraw 90% of their EPF corpus.
- If you become unemployed before retirement due to lockdown or layoffs, you may be able to access your EPF money.
- You may withdraw 75% of your EPFO corpus after one month of unemployment and transfer the remaining 25% to your new EPF account when you find a job.
- If an employee has contributed to their EPF for five consecutive years, all withdrawals made from their account will not be taxed.
- EPFO member portal for advance partial withdrawal made before the specified date will be subject to tax withholding; however, no withholding will be made on amounts below Rs.50,000.
- If a PAN is provided, the TDS deduction for an early withdrawal is 10%; however, if it is not, the deduction is 30% plus tax.
- After receiving clearance from your employer, you may easily check your EPF status online or instantly via EPFO, as long as your UAN and Aadhar are linked.
Documents Required for EPF Partial Withdrawal
The following documentation is required in order to access the funds from the PF:
- Every person has their own unique UAN.
- A member’s EPF payment information
- Documentation of residency and identification
- Cancelled checks that include account numbers and the IFSC code.
Eligibility Criteria for PF Partial Withdrawal
a. When an employee is still under service
- To access their PF funds, individuals need to submit the composite claim form, which may be either Aadhaar or non-Aadhaar.
- To use the PF account to pay for LIC insurance, the person must submit Form 14.
- When he or she reaches the age of 58 and opts to start collecting the pension.
- You may apply for a monthly pension after ten years of qualified service by filling out Form 10D.
- You must submit the composite claim form (Aadhaar/Non-Aadhaar) if you have not yet completed 10 years of qualifying service.
b. When an employee switches jobs
- They need to complete Form 13 in order to transfer their EPF monies.
- The period of time between when an employee leaves one employer and when they begin working for another
- For both PF and pension claims, the person may utilise the composite form (Aadhar/Non-Aadhar).
- Anyone beyond the age of 58 with 10 years of qualifying service may apply for a pension using Form 10D, and for PF, they can use the composite claim form (Aadhaar/Non-Aadhaar).
c. When an employee’s disability is the reason for their resignation
- Aadhaar and non-Aadhaar PF claims may be merged by him or her.
- To apply for a pension, they need to fill out Form 10D.
- Anyone above the age of 58 who does not yet have 10 years of qualifying service may apply for PF and pension benefits using the composite claim form (Aadhaar/Non-Aadhaar).
- When an employee experiences a fatality while doing their professional duties
- The nominee, heir, or beneficiary may apply for the PF settlement, monthly pension, and EDLI amount using Forms 20, 10D, and 5IF while they are still working and under the age of 58.
d. When an employee is deceased
- To access PF funds, use Form 20, and to access pension funds, use Form 10D before you turn 58 years old.
- Upon reaching the age of 58 and having completed 10 years of qualifying service, the nominee, heir, or beneficiary may claim the PF amount using Form 20, and the pension amount can be claimed using Form 10D.
- After reaching 58 years of age, nominees, heirs, or beneficiaries may use Form 20 to apply for a final PF settlement. For the pension fund, they can use the composite claim form (Aadhaar/Non-Aadhaar), but only if they have not finished 10 years of qualifying service by that age.
Tax Implications on EPF Partial Withdrawal
Withdrawals from an EPF account are not subject to taxes if an employee has made contributions for five consecutive years. In the year that the contribution term ends after five years, taxes are due on the amount that is withdrawn from an EPF. Withdrawals from an employee’s EPF exceeding Rs 50,000 prior to the conclusion of the five-year term are subject to tax withholding.
Withdrawals from an EPF account over Rs 50,000 made by an employee prior to five years of membership and the availability of their PAN card are subject to a 10% withholding tax. Upon presentation of their PAN cards, these employees will have a 30% TDS deducted from their withdrawal amount. If the employee does not want TDS withheld, they must complete Form 15G/15H.
After five years of service, employees can receive tax-free withdrawals from their EPF account.
FAQ’s
Recent regulatory changes to the EPF have made it possible for you to access your money regardless of your employer’s involvement.
If you meet the conditions, you may withdraw early by submitting the necessary paperwork..
When you quit your job or switch employers, the EPF will stop making monthly contributions to your account. That being said, the account will remain active even after you log out.
Your new employer is liable for creating a new EPF account if you move to a different company that utilises the same UAN. Once that is done, you may request EPFO to merge the two EPF accounts.