Legal AdviceProvident Fund

Can I Withdraw My 100% PF Amount?

Whatever doubts you have regarding PF’s will easily get cleared here. You can read this blog to know more about PF’s

The Provident fund or pf amount is generally a contribution best-saving scheme where the employer and employee must contribute equally to the Monetary Fund to meet the post-retirement necessities. If you want to withdraw or access the corpus, you must follow some rules regarding the Provident fund withdrawal. Employees Provident fund organization manages the employee Provident fund in India. It is ideally a statutory body that offers financial backup for the Indian citizens employed in the organized sector.

What do you need to know about Provident fund withdrawal?

The Provident fund is here to be withdrawn after retirement, but some rules allow you to withdraw your funds for emergency work or purposes. There are 3 different types of withdrawal available: the Provident fund final settlement, Provident fund withdrawal partial, and the pension withdrawal benefit.

In some situations, you can withdraw the PF amount entirely or partially from your Provident fund before maturity.

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Some of the Provident fund rules to be followed in 2022 are as follows

  1. Unemployment case: If you are an account holder of the Provident fund, then you can withdraw around 75% of the total amount accumulated if you’ve been unemployed for a long time. It is more than even 30 days after your last employment. If you do not find a job in the next 2 months, you can withdraw the remaining 25%.
  2. Education purpose:If you are a PF account holder, you can pay around 50% of the total contribution to the Employee Provident fund to pay for your education, or you can also fund the education expense for your children after the 10th standard. The funds would be transferable provided you contribute at least 7 years to the EPF account.
  3. Marriage payment:As per the latest withdrawal rules regarding the Provident fund, you can withdraw around 50% of your share to pay the essential expenses for the marriage. The marriage should be of the individual account holder or their son, daughter, or sister brother. The provision can only be used provided you contributed to the PF for 7 years at least.
  4. For specially abled applicants: Under the new PF withdrawal rules, the specially-abled account holder can withdraw at least 6 months of that basic wage besides the dearness allowance or employee share with interest, whichever is minimum, to pay for the equipment cost. The decision was ideally made to help ease the financial stress for individuals who might go through to buy the expensive equipment.
  5. Medical emergencies:Suppose you are a Provident fund account holder. In that case, you can withdraw the PF account balance for instant medical treatment for some diseases host of the facilities provided for self-usage or to pay for the treatment of an immediate family member. You can withdraw at least 6 months of your basic wage and dearness allowance or your employee share besides the interest, whichever is minimum.
  6. Pay for your current debts:You can withdraw at least 36 months of your basic salary and dearness allowance, or the complete employee and employer share with interest to pay your loan EMI. But the facility is available for you if you have contributed at least 10 years towards the epf account.
  7. Home renovation:The new Provident fund rules also offer a provision to withdraw at least 12 months of the basic salary and dearness allowance besides the employee share with interest, whichever is minimum for home renovation expansion or alteration. The residential property should be owned by the PF holder, their spouse, or even jointly. You can avail this facility at least 2 times once after completing 5 years of your residential property and after 10 years of your PF amount for the first time. You can also withdraw 90% of the accumulated fund after you reach 54 years of your age as per the new epf withdrawal rules or a year before your superannuation or retirement. The nominee or the beneficiary can apply for your settlement or get a monthly pension if you die suddenly.

The best part is that the withdrawal rules provide maximum flexibility to allow the PF account holder to meet different emergency requirements while using the savings. You can also choose to invest in other high-return investment avenues, including mutual funds, if you have some surplus funds after using the withdrawn amount.

On Vakilsearch, you can calculate the amount of money you’ll have in your EPF Calculator India account when you retire.

Steps to exit enter or withdraw the PF

If your Provident fund withdrawal takes a lot of time, the exit date is not specified yet. To avoid this scenario, the employee’s Provident fund organization has developed a feature on the unified portal where the employee can easily input the date of departure from the last employer on their own. Gone are the days when only an employer could enter the exit date because now employees can also do that. 

To exit the PF, you need to follow the following steps

  1. Firstly you need to enter your unified account number and password to access the UN website.
  2. Choose the option to manage and then click on the exit option at the top of the panel.
  3. Choose the employer given in the menu.
  4. You would be taken to a new page where you have to input the birthdate, joining date, and exit date. You must refer to the resignation letter date if the departure date is before the 15th of the current month.
  5. As per the new EPF withdrawal terms 2022, the withdrawal funds after at least 5 years of service are not likely to attract any TDs. The employee Provident fund was indeed an attractive option with the facility to transfer your EPF account with the UAN number and with the provision to earn better interest on the balance fund for at least 3 years without any contribution. The new rules have made the system quite beneficial for the EPF holders, especially the ones working in the organized sector. They can now avail all the funds for emergencies easily.

    Conclusion

    Don’t forget to check all the withdrawal rules before withdrawing your PF. For any support needed on PF, you can connect with the experts at Vakilsearch right away. 

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