Can I Withdraw My PF Amount Online

How to Access Your PF Amount: A Simple Withdrawal Guide

As we get older, there is an inevitable shift in our physical and mental capabilities. But life doesn't stop there. To keep living comfortably, we need to make proper decisions, and sometimes, these decisions are more financial. These financial decisions often make us decide what type of retirement policy we must opt for to secure our old age, and this is where PF comes in. The provident fund is a crucial financial decision to have a well-thought-out saving plan. The provident fund is like a special savings account where the employer and the employee contribute towards a fund throughout the employment period of an individual. Simple, just as savings. Right!

What is PF? 

A provident fund is a saving plan that the government manages, and it is a mandatory retirement saving scheme prevalent in many developing countries like India, Singapore, etc. IT share some features with employer-provided pension funds. Under this scheme, the employee sets aside a part of their salary for this fund, and the employer also regularly adds to it. The most advantageous part is that the government take care of and manages these points, which are substantially disbursed to retirees or their surviving dependents. Moreover, in some particular circumstances, The provident fund also provides financial assistance to those individuals who cannot engage in employment or can't work due to any disability.

Key Highlights

  1. A provident fund is a mandatory investment fund that helps individuals achieve their financial goals.
  2. It is a government-managed compulsory retirement saving scheme where the employee and employer contribute a portion of the employee's salary to this fund every month.
  3. These contributions accumulate over time and are accessible as lump sums after retirement or termination of employment.

How can I withdraw my PF amount online? 

The employee provident fund is a compulsory saving plan for employees, like a retirement fund. Employees put in 12% of their basic monthly pay, and the employer adds an equal amount to the employee provident fund account. Over time, the money earns interest, and you want to take out the entire EPF amount when you retire. However, if you need it earlier, there are a few conditions for partial withdrawals, such as medical reasons, marriage, education, housing, or other circumstances. The government has made it easier to withdraw online, but you have to meet specific requirements like having an activity universal account number and linked KYC details.

The employee's provident fund organisation, or prefer to call it EPFO, has made it very easy to withdraw money online. But before doing so, you must be sure of a few things.

  1. Your universal account number, or UAN, is activated, and the mobile number works.
  2. Your UAN is linked with your KYC details, such as Aadhar Pan Bank information and IFSC code. 

All these conditions make it easy for you to get the attestation of your previous employer in the withdrawal application.

If you are looking for how to withdraw PF funds online, adhere to the following steps.

  • Go to the UAN portal.
  • Log in using your UAN and password, input the captcha and click 'sign in'.
  • Navigate to manage and opt for KYC to verify the status of Aadhar PAN and bank details.
  • After your KYC verification, proceed to online services and choose 'claim (Form-31 10, 10C and 10D).'
  • Enter your bank account number and click 'verify.'
  • Confirm the undertaking by clicking 'yes' and proceed.
  • Click on 'Proceed' for an online claim.
  • Choose the type of claim you need: full EPF settlement, EPF part withdrawal (loan/advance), or pension withdrawal.
  • Select 'PF advance form-31' if eligible, and provide the purpose amount and address.
  • Click the certificate and submit your application. You might also need to upload and scan the documents based on your application purpose.

What do you need to withdraw your PF amount Online? 

You need the following documents to withdraw money from your employee's provident fund.

  1. Universal account number
  2. Bank account details of the EPF subscriber
  3. Proof of identity and address
  4. Cancelled cheque with IFSC code and account number

How many days are required for PF withdrawal? 

In an emergency, employees can submit provident fund claims using Form-19 and withdraw their EPF entirely or partially. 
Per the guidelines issued by employees' provident fund organisations, it usually takes 20 days to process and release the PF amount if the claim is submitted to the relevant EPFO office.

Can I withdraw my 100% PF amount? 

Here are some rules you must consider if you want to withdraw 100% of your PF amount. 

Unlike your bank account, the funds in the Employee's Provident Fund account cannot be taken out while you are employed. Employee provident fund is specially meant for long-term retirement saving, and withdrawal is only allowed after retirement. However, partial withdrawal is possible in emergencies like medical needs, buying a house, or education, but that is within certain limits.

If you seek early retirement, then EPFO mandates only after 55 years. You can withdraw 90% of EPF corpus a year before retirement, given that the person is at least 54.

If an individual faces unemployment before retirement due to lockdown or retrenchment, EPF withdrawal is allowed. The new rule allows 75% withdrawal after one month of unemployment, with the remaining 25% transferred to a new EPF account after new employment. 

(In the old rule, you were permitted to withdraw 100% of your EPF after two months of unemployment.)

What are the rules for PF withdrawal? 

There are certain rules to consider while withdrawing money from your employee's provident fund. You can withdraw money in different situations, and in each situation has specific conditions for eligibility.

  1. Retirement: Any individual who is 55 years old and considering retirement from employment is eligible for EPF withdrawal.
  2. Unemployment: Individuals who have been unemployed for two consecutive months can withdraw 75% of the total EPF amount.
  3. Medical purpose: EPF withdrawal for medical purposes doesn't mandate a minimum service year.
  4. Wedding: To withdraw EPF for wedding expenses, a minimum service life of 7 years is required.
  5. Repayment for a home loan: Individuals withdrawing from EPF to repay a home loan must have completed three years of service.
  6. Purchase or construction of a house: Any individual seeking to purchase or construct a new house and wanting to withdraw EPF for this purpose must have a minimum 5-year service tenure.
  7. Renovation or reconstruction of the house: An individual can withdraw 12 months of basic wage plus clearance allowance, or the employees can share with interest, which is smaller for home renovation improvement or expansion. This can be done twice, once after five years of completing the residential property and again after ten years.

Can I reduce the text burden on EPF withdrawal?

According to the updated rules in 2023, if you have contributed to your employee's provident fund for at least five years, you can withdraw your money without facing any text deducted at source or TDS. This crucial change helps reduce the text burden when you withdraw your PDF amount. The EPF scheme already serves numerous advantages, such as transferring an account with a universal account number and earning interest on the balance point for up to 3 years without making a new contribution. With this, new withdrawal rules have offered more benefits, especially to those employees working in the organised sector who may need emergency funds.

Final words

The employee's provident fund is essential to financial planning, especially for long-term retirement savings. The provident fund ensures a comfortable life afterwards. It is a mandatory saving plan where both employees and employers contribute throughout the employment period, increasing the employee's savings. Although EPF is specially designed for post-retirement needs, it also allows partial withdrawal in emergencies like medical situations or education. Therefore, it is important to understand PF withdrawal rules, where you must fulfil the eligibility criteria based on circumstances like retirement, unemployment, medical needs, etc.

Also Read:

How to Check PF Account Balance

05 Feb, 2024

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