An EPF is an employee retirement plan. It is a statutory benefit available to retired or departing employees. Benefits are paid to dependents of deceased employees. Employers and employees are both required to contribute to the EPF Scheme.
If certain conditions are met, the interest is credited to the member’s Provident Fund Account (PF account). It is available upon retirement or termination of employment.
Employees’ Provident Fund (EPF) is an Indian employee social security and savings scheme. Employers with more than 20 employees must get PF registration and adhere to PF contribution regulations.
Withdrawal of PF – Application and Documents Required
Employees who have made PF contributions may withdraw money from their accounts for a variety of reasons by submitting an application through the Unified Portal – https://unifiedportal-mem.epfindia.gov.in/. This article examines the application and what are the documents required for pf withdrawal online.
Reasons for PF Withdrawal
Employees can seek an advance or withdrawal of the amount in their PF account. Possible grounds for requesting a PF advance or withdrawal include:
- Settlement of PF
- Benefits from Pension Withdrawal (only if the service is less than 10 years)
- Withdrawal of PF Part
Settlement of PF
An employee may file a PF settlement application for any of the following reasons:
- Member’s illness Contraction/Discontinuation of employer’s company
- Other factors beyond the member’s control
- Marriage (for female members)
- Permanent Relocation Abroad.
Withdrawal of the Entire PF
The funds in an EPF account are available for withdrawal in whole or in part. The following situations allow for full EPF withdrawal:
- At the time of retirement, an employee’s EPF balance can be totally withdrawn or
- When an individual is unemployed for more than two months, the EPF amount can be taken fully. To claim the full amount of EPF due to unemployment, the fact of unemployment must be certified by a gazetted authority.
Use Vakilsearch`s EPF calculator to determine out how a whole lot cash might be accumulated on your EPF account while you retire.
PF Withdrawal in Part
Partial withdrawal of EPF funds is permitted only in certain circumstances and once certain conditions are met. The following are the circumstances and conditions:
If an individual marries, has a son or daughter, or has siblings, withdrawal of 50 percent of the employee’s EPF contribution is permitted only after seven years of employment.
Individuals may withdraw 50% of their EPF contributions for their own education or the education of their children. Furthermore, withdrawal is permitted only if the individual has served for at least 7 years, and withdrawal is permitted only for post-matriculation educational expenditures.
Purchase of Land or House Construction
The following conditions/restrictions apply to EPF withdrawals for the acquisition of land or the purchase/construction of a house:
- Five years of service should be completed
- The house/land requested to be purchased/built must be in the employee’s name, the employee’s husband’s name, or in the names of the employee and spouse
- In the case of land acquisition, the maximum authorised sum is 24 times monthly income, while the maximum allowable amount for home purchase/construction is 36 times monthly wages
- The property should be free of any disputes and legally registered, with documentation of such registration supplied
- Existing Home Loan Repayment is Restricted EPF withdrawal is permitted if it is required for repayment of an existing house loan and the following conditions are met
- The employee has completed ten years of service
- Only one withdrawal for house loan repayment is permitted in his lifetime
- If the employee has been permitted to withdraw EPF for the purchase/acquisition/construction of a home, he will not be permitted to withdraw EPF for home loan repayment. In other words, the employee can withdraw either for the purchase/construction of land/house or for the repayment of a home loan; withdrawal in both cases is not permitted
- The property must be in the employee’s name, the spouse’s name, or jointly in the employee’s and spouse’s names
- The maximum permissible withdrawal is 36 times the employee’s monthly income
- As proof, a house agreement, home loan sanction letter, and other necessary documents as requested by the Employee Provident Fund Organisation (EPFO) office must be submitted
- Withdrawals are permitted from both the employee and employer contributions.
Only if the following conditions are met can an employee withdraw EPF for the purpose of house renovation, repair, or change.
- The employee should have completed a minimum of ten years of service
- Employees can only withdraw EPF for house restoration, repair, or change once in their lives
- The property must be in the name of the employee, the employee’s spouse, or jointly in the names of the employee and spouse.
- The residence requiring renovation, repair, or alteration must be at least five years old from the date of its completion. The maximum permissible withdrawal is 12 times the employee’s monthly pay
- Only the employee’s personal contribution is eligible for withdrawal.
To know more visit: How to apply for PF Online?
According to EPF laws, the retirement age is 58 years, and so EPF withdrawals of up to 90% of the cumulative amount, plus interest, are permitted at the age of 57 years. Simply put, once an employee reaches the age of 57, he is allowed to take 90% of his EPF contribution.
Employees may withdraw their EPF funds for medical treatment. The requirements for withdrawal in the case of medical treatment are very liberal, as detailed below.
- Medical treatment for the employee, his spouse, parents, and children
- Withdrawal is permitted if you are hospitalised for more than one month for any reason
- In the event of a significant surgical procedure, withdrawal is also permitted
- if a person is afflicted with leprosy, mental illness, cancer, paralysis, tuberculosis, or heart disease, and their employer has allowed them leave for such treatment, they are eligible for unemployment benefits
- Withdrawal is permitted at any moment and there is no minimum number of years of service required
- Withdrawal is permitted for up to 6 months of the employee’s salary.
Documents Required for PF Withdrawal
To begin a PF withdrawal, the employee must submit a PF withdrawal application to the EPFO office in question. In addition to the withdrawal form 15g for PF withdrawal, the employee must include the following documents required for pf withdrawal online:
- PF withdrawal for housing loan, site/home/flat acquisition, building, addition to existing dwelling, or repayment of housing loan
It is necessary to obtain a new Declaration Form/Utilisation Certificate
- Factory lockout or shutdown
There is no documentation necessary
- Illness of a family member
Doctor’s certification and employer’s certification declaring that the member is not eligible for ESIC coverage
- Self/son/daughter/brother/sister marriage
A marriage certificate is necessary
- Physically disabled people purchase equipment
It is required to possess a medical certificate
- Varishtha Pension Bima Yojana investment
Transferring 90% of the total PF balance to LIC is possible
Your employer must accept your withdrawal request before funds are removed from your EPF account and sent to your bank account. Make contact with the competent personnel at vakilsearch to obtain additional information on the provident fund as well as any other relevant programmes.
- EPF Withdrawal Online Process
- How to know My PF Account Number by Name?
- How to check PF Withdrawal Taxability?
- How to Fill E-Nomination in EPFO?
- How To Calculate PF Balance In Passbook?
- Who is Applicable For PF?