PF Withdrawal – EPF Withdrawal & Transfer Process Online
Employees’ Provident Fund is a social security and savings scheme for employees in India. Employers having more than 20 employees are required to obtain PF registration and comply with PF contribution requirements. Employees who have contributed to PF can withdraw money in their PF account for various reasons by applying on the Unified Portal. In this article, we look at the application and documents required for PF withdrawal.
PF Withdrawal Reasons
Employees can apply for an advance or withdrawal or settlemnt of the amount in a PF account. The reason for applying for an advance or withdrawal of PF can be any of the following:
- PF Settlement
- Pension Withdrawal Benefits (only if the service is less that 10 years)
- PF Part Withdrawal
PF settlement application can be made by an employee for any of the following reasons:
- Ill health of member
- Contraction /Discontinuation of employer’s business
- Other cause beyond the control of the member
- Marriage (for female member)
- Permanent Settlement Abroad
Full PF Withdrawal
The amount in an EPF account can be withdrawn completely or partially. The following are circumstances when full EPF withdrawal is allowed:
- EPF amount can be withdrawn completely at the time of retirement of an employee from employment; or
- EPF amount is allowed to be withdrawn completely when the individual remains unemployed for a period of 2 months or more. In order to claim EPF amount completely on the basis of unemployment, the fact of unemployment is required to be certified by the gazetted officer.
Partial PF Withdrawal
Partial withdrawal of EPF amount is allowed only under certain circumstances and after fulfilment of specific conditions. The circumstance and the conditions are summarized hereunder:
On account of the marriage of individual or son/daughter of individual or siblings of an individual, 50% of employee’s share of EPF withdrawal is allowed only if the individual has completed at least 7 years of service.
In case of education of individual himself or for the education of his children, 50% of employee’s share of EPF withdrawal is allowed. Further, the withdrawal is allowed only if the individual has completed at least 7 years of service and withdrawal is allowed only for post matriculation educational expenses.
Purchase of Land or Construction of House
EPF withdrawal is allowed for the purchase of land or purchase/construction of a house on the basis of following conditions/restriction:
- At 5 years of service period should be completed;
- House/land so desired to be purchased/constructed should be in the name of the employee or on the name of his / her spouse or jointly in the name of employee and spouse;
- In case of purchase of land, the maximum allowable amount is 24 times of monthly wages;
- In case of purchase/construction of a house, the maximum allowable amount is 36 times of monthly wages;
- The property should be free from any dispute and the same should be duly registered and proof of such registration must be submitted.
Existing Home Loan Repayment
Limited EPF withdrawal is allowed in case the same is required for repayment of existing home loan on fulfilment of following conditions:
- The employee has completed 10 years of his service period;
- Withdrawal for home loan repayment is allowed for only one time in his lifetime;
- If the employee has been allowed withdrawal of EPF for the purchase of land/purchase/construction of a house, then, in such circumstance, he will not be allowed EPF withdrawal for home loan repayment. In simple words, the employee can either withdraw for purchase/construction of land/house or can withdraw for repayment of home loan, withdrawal under both the case is not allowed;
- The property should be in the name of the employee or in the name of spouse or jointly in name of employee and spouse;
- Maximum allowable withdrawal is 36 times of monthly wages of the employee;
- House agreement, sanction letter of home loan and other relevant documents as demanded by the office of Employee Provident Fund Organization (EPFO) is required to be submitted as proof;
- Withdrawal is allowed both from employee and employer’s contribution.
Renovation of House
An employee can be allowed withdrawal of EPF for the purpose of renovation, repair or alteration of the house only if following conditions are satisfied:
- The service period of minimum 10 years should have been completed by the employee;
- The employee can withdraw EPF for renovation, repair or alteration of a house for only one time in his lifetime;
- The property should be in the name of the employee, or in the name of spouse or jointly in the name of employee and spouse;
- The house for which renovation, repair or alteration is to be done should be at least 5 years old from the date of completion of construction;
- The maximum allowable withdrawal is 12 times of monthly wages of the employee;
- The withdrawal is allowed only from employee’s own contribution.
Prior to Retirement
The retirement age as per EPF rules is 58 years and hence the EPF withdrawal up to 90 % of accumulated amount along with interest is allowed in case of prior retirement withdrawal at the age of 57 years. In simple terms, as soon as the employee attain the age of 57 years, he is eligible to withdraw 90% of his EPF contribution.
EPF withdrawal is permissible to the employee in case of medical treatment. The condition for withdrawal in case of medical treatment is very liberal and the said conditions are narrated hereunder;
- Medical treatment in case of the employee himself, spouse, parents and his children;
- Withdrawal is allowed in case of hospitalization for any reason for more than one month;
- Withdrawal is also allowed in case of major surgical operation;
- In case one is suffering from leprosy, mental derangement, cancer, paralysis,
- TB or heart ailment and the employer has granted leave for such treatment;
- The withdrawal is allowed anytime and there is no requirement for completion of any specific years of service;
- Withdrawal is allowed up to 6 months wages of the employee.
PF Withdrawal Documents Required
To initiate PF withdrawal, the employee must submit the PF withdrawal application at the concerned EPFO office. Along with the PF withdrawal application, the employee must also submit the following supporting documents:
- PF withdrawal for housing loan or purchase of site/house/flat or for construction orAddition alteration in existing house or repayment of housing loan.
- New Declaration Form/Utilization Certificate is required.
- Lockout or closure of the factory
- No document is required.
- Illness of member/family.
- Certificate of doctor and Certificate by the employer that ESIC facility is not available to the member.
- Marriage of self/son/daughter/brother/sister.
- Marriage Card is required.
- Purchase of equipment by physically handicapped.
- A medical certificate is required.
- Investment in Varistha Pension Bima Yojana
- 90% of total PF balance can be transferred to LIC.
PF Withdrawal Form 11 – Employees Having UAN linked to Aadhaar
PF Withdrawal Form 11 is applicable for employees having UAN whose details like Aadhaar, Bank Account and PAN has been updated on the Unified Portal. Employees submitting PF Claim Form 11 can submit this form directly to the concerned EPFO office directly without the attestation of claim form by the employer.
PF Claim Form 19 – Employees Not Having UAN
PF Withdrawal Form 19 is applicable only for employees not having UAN. The EPFO has issued UAN for all employees who have made a PF contribution after 2014. In case of an employee who has made PF contribution only before 2014, he/she can approach the nearest EPFO office for issue of UAN. PF Claim Form 19 can also be filed without a UAN by mentioning only the PF Account Number. However, to file PF Withdrawal Form 19, the employer’s attestation would be required.
PF Withdrawal Status
After submitting the PF withdrawal application online on the Unified Portal or at the concerned EPFO office, the employee can check PF claim status on the EPFO website or UMANG app or through missed call facility. The procedure for checking PF claim status can be checked out here:
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