The government (in certain situations), the employer, and the employee all make long-term contributions to the Employees’ Provident Fund (EPF). The Employees’ Provident Fund Organization (EPFO), a statutory agency, oversees the Social Security program, which aims to give people a safety net as they approach retirement. When an employee retires, the amount invested over the years is given to them along with a predetermined amount of interest. The employee may withdraw funds from the Employees’ Provident Fund in any of the following situations: When retiring (either on or after turning 58 years old), if unemployed for two months, passed away before the designated retirement age.
What are some rules for EPF withdrawal?
Following the EPF Act, a member must apply for his final settlement claim after retiring at age 58.
The combined company and employee contributions make up the entire PF balance.
If the member has continued to serve for more than ten years, he also becomes eligible for the EPS amount.
If, at the time of retirement, the member has not served for ten years, he is eligible to take both his EPF and the full amount of EPS.
After retiring, the worker receives pension payments if he has worked for ten years.
After retirement, the corpus accumulated in the EPF account can be withdrawn entirely tax-free.
After retirement, interest accrued on the EPF corpus is subject to taxation.
After registering on the EPF member site, an employee can fill out the form and access his funds online.
The member will be required to pay tax on the interest earned if, after retirement, he withdraws no money for three years.
The following is a step-by-step guide for completing the online EPF Composite Claim Form:
To access the EPF member portal, enter your password and UAN.
Choose “Claim (Form-31, 19, 10C, and 10D)” from the drop-down menu under the Online Services header.
Details about members, KYC, and other services will appear on the screen. Click “Verify” after entering your bank account number (as seeded against UAN).
To sign the undertaking’s certificate, click “Yes,” and then continue.
Click “Proceed for Online Claim” now.
Choose the claim type you need on the claim form—full EPF settlement, for example, in the “I Want to Apply for” section. The choice will not appear in the drop-down menu if you meet the eligibility requirements for any of the services, such as pension or PF withdrawal.
For example, choose “PF Advance (Form 31)” if you want to make a partial online cash withdrawal. Include the employee’s address, the desired amount, and the reason for the advance.
After selecting the certificate, send in your application: For the reason that you have completed the form, you might need to send in scanned copies of your documentation. Upon approval of the withdrawal request by the employer, funds will be sent into your bank account. The money is usually credited to the bank within 15 to 20 days.
Conclusion: Before beginning the withdrawal process, there is one thing you should remember to do: combine all of your prior PF accounts.