EPFO: Why You Received Less Than What You Claimed, Check Corrective Measures
Online EPF claim submission is fast and convenient, but it also needs accuracy.
The Employees’ Provident Fund Organisation (EPFO) operates a long-term savings plan to provide retirement benefits to all salaried employees. Under the EPF scheme, managed by the EPFO, all the subscribers can contribute a portion of the basic pay and dearness allowance (DA) every month and an equal amount is also contributed by the employer.
Currently, an employee contributes 12% of the basic salary and DA. The interest rate on the EPF savings is revised by the government periodically. Being a retirement benefit plan, EPF withdrawals are generally not allowed. However, under certain circumstances, the EPF subscribers can make partial withdrawals to meet specific financial needs. The EPFO allows members to make advance withdrawals from their EPF accounts under specific conditions such as house construction, marriage of children and serious health issues.
At times, the employees receive a lower amount than their original EPF claim. This could happen due to multiple factors. If you have received a lower amount than the EPF advance claim you raised, here are the possible reasons to consider and take corrective measures.
Common Reasons For Receiving A Lower EPF Amount
The EPFO allows members to make advance withdrawals from their EPF accounts under specific circumstances. The approved withdrawal amount may sometimes be less than the maximum permissible limit due to various eligibility criteria and conditions.
Housing Advance Withdrawal
Eligibility:
Purpose: Purchase, construction, or repayment of a home loan.
Maximum Withdrawal: Up to 90% of the EPF balance.
Service Requirement: Minimum of 5 years of service.
Ownership: The property must be registered in the member's name or jointly with the spouse.
Reasons For Lower Approval:
Incomplete Documentation: Missing property documents or loan agreements.
Property Ownership Issues: Property not solely or jointly owned with the spouse.
Service Tenure: Less than the required 5 years of service.
Withdrawal Limits: The amount is capped at 36 months' basic salary plus dearness allowance or 90% of the EPF balance, whichever is lower.
Advance Withdrawal For Marriage
Eligibility:
Purpose: Marriage of self, children, or siblings.
Maximum Withdrawal: Up to 50% of the employee's share with interest.
Service Requirement: Minimum of 7 years of service.
Frequency: Up to three times during the service period
Reasons For Lower Approval:
Insufficient Service Tenure: Less than 7 years of service.
Exceeded Withdrawal Limit: Already availed the maximum number of withdrawals for marriage or education.
Inadequate EPF Balance: Limited funds in the employee's share.
Documentation Issues: Missing or invalid marriage invitation card or declaration.
Retirement Withdrawal
Eligibility:
Purpose: Retirement or within one year before retirement.
Maximum Withdrawal: Up to 90% of the EPF balance.
Age Requirement: At least 54 years old and within one year of retirement/superannuation
Reasons for Lower Approval:
Age Criteria Not Met: Not within one year of retirement.
Service Tenure: Less than the required years of service.
Incomplete Records: Missing or incorrect date of birth or retirement details in EPFO records.
What You Should Do To Avoid A Reduced EPF Claim Amount
Check Your KYC Details: Ensure your KYC details, including Aadhaar, PAN, and bank account information are updated and correct in the EPF system. You can update them through the EPFO member portal.
Verify The Eligibility: Double-check if you are eligible for full withdrawal. In some cases, your EPF balance might be subject to pension rules or other conditions that limit what you can withdraw.
Track Your Claim Status: Log into the EPFO member portal to check the status of your claim and confirm the exact amount processed.
Contact EPFO: If you still can’t find the reason for the shortfall, it’s best to reach out to the EPFO through their helpdesk or grievance portal. They can guide you through the correction process.
