Employees’ Provident Fund (EPF) is one of the oldest schemes offered by the Centre to ensure a safe and secure retirement of employees. Under this scheme, employees contribute 12% of their basic salary every month during their time under service and an equivalent proportion is contributed by the employer; together forming a corpus to the provident fund. According to the EPF Act, the employee can withdraw an approximate amount after attaining his 58 or during their course of employment under certain conditions.
There’s a whole lot of benefits under EPF and according to the latest update, the Interest rate on PF deposits has been increased for the fiscal year 2018-19 from 8.55% to 8.65%.
It is well known that every employee covered under the PF Scheme is allocated with a unique Universal Account Number (UAN). This 12-digit UAN is assigned to both the employee and the employer by the Employees’ Provident Fund Organisation (EPFO), by virtue of which both of them could make a contribution to EPF. The UAN stays the same of life and thus the employee need not request for another number whenever he switches a job.
In this blog we will assist you in understanding the complex process of withdrawing EPF and how you can avail its benefits both Online & Offline.
Understanding the process of EPF withdrawal
Employees can withdraw their EPF amount in either of the two ways-
- By submitting an application to the respective jurisdictional EPFO office
- By submitting an online application through EPF Portal
1. Offline submission of the application to avail EPF withdrawal
Step 1: Visit EFPO India Portal, and download the updated composite claim (Aadhar/ Non-Aadhar).
Case 1: If the employee downloads- new composite claim form (Aadhar), he/ she is supposed to submit the filled form to the respective jurisdictional EPFO office. It is not mandatory to get the form attested by the employer.
Case 2: If the employee downloads- new composite claim form (Non-Aadhaar), he/ she must get the form attested from the employer after filing all the required fields and then submit it to the jurisdictional EPFO office.
Note: In case the employee wishes to withdraw a partial amount of EPF, he/ she can opt for a self-certification.
2. Online submission of an application to avail EPF
The massive campaign named ‘Digital India’, launched on 1st July 2015 introduced a large number of electronic government services to make the governmental processes easy for all the citizens. Just like others, one such online facility is recently given by EPFO. The entire online process of withdrawing EPF is simple to understand, execute and comparatively time-saving.
To apply for EPF withdrawal online, make sure that the following necessary conditions are met-
- Check the status of UAN (Universal Account Number). It must be activated and the mobile number registered with it must be in working condition
- The Universal Account Number must be linked with the KYC i.e. Aadhaar, PAN and bank details.
Note: In case of absence of any of these conditions, approval from the employee’s previous employer is required.
Step 1: Visit the MEMBER e-SEWA portal to initiate the process.
Step 2: Enter your UAN, password and case-sensitive captcha code. Then click Sign In.
Step 3: A new screen will appear. Click on the ‘Manage’ tab and select KYC to check the correctness and verification of details mentioned like Aadhaar, PAN and Banks information.
Step 4: After complete verification of KYC details, click on the ‘Online Services’ tab and select ‘Claim (Form-31, 19 & 10C)’ from the drop-down list.
Step 5: After clicking the Claim (Form-31, 19 & 10C), a screen will appear, displaying all the KYC details and member details. To verify, enter the last 4 digits of your bank account number and click on the ‘verify’ button. Then click on “Proceed for Online claim”.
Step 6: A warning pop up will appear, click on “Yes” to agree to the terms and conditions and to sign the undertaking certificate and click on “Proceed for Online claim” button.
Step 7: Open the claim form and select the type of claim you require under the ‘I Want To Apply For’ tab. The options available with you are:
- Full EPF Settlement
- Part EPF withdrawal (loan/advance)
- Pension withdrawal
Note: There are certain situations in which these options don’t appear if the member is not eligible for any services like PF withdrawal or pension withdrawal.
Step 8: If the required option is available, select “PF Advance (Form 31)” for fund withdrawal. Enter the amount you want to withdraw, give a relevant reason for your withdrawal in advance and enter your verified address.
Step 9: Submit your online application by clicking on the certificate.
Note: In certain situations, employees are asked to attach relevant proof of documents along with the application and get the approval from the employer before making a withdrawal. You will receive the money only after approval. This whole process take 15-20 business days and the amount will be credited directly in your bank account after approval.