EPF Withdrawal: How To Withdraw PF Money Online?
Withdraw money from your EPF account in a few simple steps. Read the complete BQ Prime guide to know more!
What Is EPF (Employee Provident Fund)?
What Is EPF (Employee Provident Fund)?
Employee Provident Fund or EPF is an important retirement benefit instrument for every salaried person. The employee provident fund is the main scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. The scheme is managed under Employee Provident Fund Organisation (EPFO). With the help of this system, a worker can contribute to his employee's provident fund account or EPF Contribution under two schemes; namely, the Employees' Provident Fund Scheme (EPF) and the Employee Pension Scheme (EPS).
The main objective behind launching this scheme was to create a pool of funds for people who are working but do not have any financial security during their lifetime. In addition to that, it also provides pension benefits at old age or retirement.
When Can You Withdraw EPF Money?
It is essential to understand the process of withdrawing money from your EPF account to augment your savings. An employee can withdraw money from his/her provident fund account in case of the following circumstances:
Marriage: You can withdraw money from your EPF account on the account of your marriage, your child’s marriage or your sibling’s marriage. However, you can only withdraw the amount if you have already completed seven years of service. You can use up to 50 per cent of the EPF account, and the advantage can be used for a maximum of three times only.
Medical Treatment: You can withdraw money from your EPF account when you need to fulfil the financial requirements of medical treatment. However, the medical treatment should be any major surgery in a particular hospital, hospitalisation for more than a month, or if you’re suffering from TB, cancer, Paralysis, heart disease, leprosy etc and are on leave granted by the employer.
Also, you can withdraw money for medical treatment anytime, however, the maximum amount that you can avail yourself of is your six months’ salary.
Purchase of a property or construction of a house: If you’re planning to buy a new home for you or construct your current one, the EPF amount is there to support you. Also, the maximum amount that you can withdraw is 24 times your monthly salary. To be noted, in order to avail of this, you need complete 5 years of your service.
Repayment of loan: If you have taken a loan and wish to pay it in advance, you can withdraw your EPF amount, however, you should have completed ten years of service to do that. You can withdraw an amount equivalent to 36 times your monthly salary. Also, This withdrawal advantage can be availed only one time in your entire lifetime. To be noted: You can either avail of money for a loan payment or purchase a new property. You cannot withdraw for both reasons.
Education: You can withdraw your EPF amount for your post-matriculation educational financial requirement. In order to avail of this benefit, you need to complete seven years of service.
Home Repair: If you need to repair your home, you can withdraw money from your EPF account. However, you should have completed ten years of your service, and you can only withdraw a maximum of 12 times your monthly salary. Also, your home should have completed a tenure of five years before you withdraw money for a repair.
Common Withdrawal Reasons:
You can withdraw your money:
If you have reached retirement age.
If you have been unemployed for over two months.
If you’re moving abroad permanently.
If you’re a female and resigning from your job because of marriage, pregnancy or childbirth etc.
How To Withdraw Money From Your EPF Account Online And Offline?
The Offline method:
Download the composite claim form, anything Aadhaar or non-Aadhaar.
If you’re applying through the composite claim form (Aadhaar), you need to link the Aadhaar number with the primary bank account number and provide the bank account details. If you’re applying through a composite claim form (non- Aadhaar), you don’t need to do Aadhaar seeding.
Once you fill out the data, you need to submit the form to the respective jurisdictional EPFO office.
The Online Method:
1. Open the EPFO portal and visit the Member e-Sewa portal.
2. Sign in using your credentials.
3. From the ‘online services’ tab, select claim (Form 19, 31, 10C or 10D)
4. Provide a bank account linked with UAN and now click on verify.
5. Confirm the terms and conditions.
6. Select the option ‘Proceed for Online Claim’ and select the reason.
7. Provide the required details.
8. Now, click on terms and conditions and select ‘Get Aadhaar OTP’.
9. Now, submit the OTP and you’re done.
In conclusion, you can withdraw your EPFO amount for some important and unavoidable circumstances.