EPFO: Are you withdrawing your EPF? Don't miss out on these important provident fund rules

There are certain criteria that must be met for EPF withdrawal. If a person is without work for over a month, they can withdraw 75 per cent of their accumulated EPF amount.

The EPF interest rate is 8.1 per cent.

The Employee Provident Fund provides social security to millions of Indians. Backed by the Government of India, the fund has an interest rate of 8.1 per cent. Both employees and employers contribute 12 per cent of the worker’s base salary to the Employee Provident Fund. The scheme provides retirement benefits to all eligible employees. There is also provision for premature withdrawal from EPF.

There are certain criteria that must be met for EPF withdrawal. Here are the conditions regarding EPF withdrawal that members must be aware of.

Unemployment: If a person is without work for over a month, they can withdraw 75 per cent of their accumulated EPF amount. If they are unemployed for over two months, the remaining 25 per cent can also be availed. Apart from this condition, the entire amount can be taken out only after retirement.

Medical emergencies: An EPF member can withdraw their balance for urgent medical treatment of self or immediate family members. The withdrawal is the employee’s share along with interest or six months of basic wage and dearness allowance, whichever is less.

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Home loan payment: To pay off home loan debt, a member can take out up to 90 per cent of the corpus. The facility can only be availed if the employee has completed at least three years of service.

Will TDS be cut on EPF withdrawal?

In case an employee has less than five years of service and the accumulated EPF amount is over Rs 50,000, TDS will be deducted at 34.6 per cent if the PAN has not been submitted, as per the Employees' Provident Fund Organisation.

How to Apply for EPF withdrawal

How to apply offline:

Download the Composite Claim Form (Aadhaar)/Composite Claim Form (non-Aadhaar) from the EPFO website. Fill in the application and get the employer’s attestation before submitting it at the jurisdictional EPFO office.

How to apply online:

– Visit the UAN portal and login.
– Click on the Manage tab and check if your KYC details are verified.
– Go to online services and choose ‘Claim (Form-31, 19, 10C & 10D)’ from the menu.
– Verify your bank account number.
– Click on ‘Proceed’ and select the claim you require.
– Choose PF advance for withdrawal and state your purpose.
– Submit your application and wait for your employer to approve it. The money will be deposited in 15-20 days.

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Personal Finance EPFO