How to Withdraw and Transfer your Provident Fund Money
Provident fund (PF) or employee provident fund (EPF) is a popular government of India run scheme, which functions as a useful social security net for individuals employed with eligible organizations. Under the scheme, the employees contribute around 12% of their basic pay plus dearness allowance towards the EPF pool on a monthly basis. A corresponding amount is contributed by the employer. The returns are recalibrated by the union government periodically and currently provide a decent 8.65% per annum for FY2018-19. 
 
Thus, over a period of time, the cumulative contributions result in a corpus that can provide monetary support during the retirement years. While PF is a very sound investment, in times of extreme emergency, however, the amount could be withdrawn, prior to retirement as well, subject to certain conditions. We shall look at the situations under which an employee can withdraw and transfer the EPF.
 
To facilitate smooth portability of employee EPF records, the EPFO mechanism functions with the help of universal account number (UAN). Allotment of UAN to the employee is mandatory, whereby the UAN would be linked to the employee’s EPF account.
 
Details about EPF Withdrawal
 
One has the option to withdraw EPF completely or partially. But any withdrawal of EPF before five years of continuous employment attracts tax. The following are the situations under which EPF can be withdrawn.
 
  • Complete withdrawal of EPF is permitted under the following situations:
 
a. Upon retirement from employment
 
b. In the event that an individual remains unemployed for a period of two months or more, withdrawal is subject to attestation by a gazetted officer. 
 
  • Partial withdrawal of EPF is allowed in the following circumstances, subject to stipulated conditions, with self-attestation facility:
 
a. Marriage: For the purpose of marriage of self, son/daughter and siblings i.e. brother/sister
 
  • Ceiling on withdrawal limit: Upto 50% of the employee’s contribution towards EPF
  • Minimum number of years in service: This facility can be availed in case of at least 7 years in employment
 
b. Education: Towards funding education for self (i.e. employee) or his/her children post completion of class 10
 
  • Ceiling on withdrawal limit: Upto 50% of the employee’s contribution towards EPF
  • Minimum number of years in service: This facility can be availed in case of at least 7 years in employment
 
c. Acquisition of land or house property or construction of house property: The capital asset should be owned by either the employee, the employee’s spouse or owned jointly
 
Eligible withdrawal amount:
 
  • Asset is land – Ceiling limit is up to 24 times the sum of monthly wages and Dearness allowance
  • Asset is house property – Ceiling limit is up to 36 times the sum of monthly wages and Dearness allowance
  • Minimum number of years in service: This facility can be availed in case of at least 5 years in employment
 
d. Repayment of home loan: Partial EPF withdrawal is subject to fulfilling following conditions
 
  • The said property should be registered in the name of either the employee, the employee’s spouse or in joint name
  • The employee would have to submit relevant documents to the EPFO, validating housing loan availed 
  • The cumulative amount in the employee’s EPF, either singly or along with the spouse, including the interest component should exceed Rs20,000
  • Ceiling on withdrawal limit: Up to 90% of the cumulative contribution of employee and employer towards EPF
  • Minimum number of years in service: This facility can be availed in case of at least 10 years in employment
 
e. House renovation: The concerned property should be registered in the name of either the employee, the employee’s spouse or in joint name
 
  • Ceiling on withdrawal limit: Up to 12 times the monthly wages earned
  • Minimum number of years in service: This facility can be availed in case of at least 5 years in employment
 
f. Upon reaching 57 years of age: 
 
  • Ceiling on withdrawal limit: Up to 90% of the available amount, including interest
 
Withdrawal procedure: The employee can either submit a physical form or submit an online application.
 
Steps involved in case of submission of physical form:
 
Aadhaar based: The employee needs to submit the composite claim form (Aadhaar) at the regional EPFO office. This does not need attestation by the employer.
 
Non-Aadhaar based: The employee needs to submit the composite claim form (non- Aadhaar) at the regional EPFO office, along with employer attestation.
 
Steps involved for online submission of form
 
  • This is facilitated by withdrawal of EPF online through the EPF website. The following are the prerequisites for smooth EPF withdrawal and elimination of the need for employer attestation:
  • It is mandatory that the UAN is activated with a valid registered mobile number. 
  • UAN needs to be linked to one’s KYC along with one’s bank account.
 
Broadly the steps include: 
 
  • Logging into the EPFO website using one’s UAN and password. 
  • Following this, one needs to access the Claim section in the Online services tab. 
  • Upon selection of Proceed for online claim, one needs to fill in the claim form. 
  • Under this, the employee would need to select either of the 3 options in I Want to Apply for tab:   full EPF Settlement, EPF Part withdrawal (loan/advance) or pension withdrawal. 
  • In case being ineligible, the options would not be displayed in the drop-down menu
  • Submit the form
 
Details about EPF Transfer
 
In case of a job change, it is advisable to transfer the EPF balance to the current employer. The following are the prerequisites for smooth EPF transfer:
 
  • Approval of e-KYC by employer
  • The previous or current employer should have registered authorized signatories in the EPFO
  • The EPF A/c no of previous as well as current employment should be entered in the EPFO portal
  • A single transfer request against the previous member ID would be accepted
  • Broadly the steps comprise
  • Logging into the EPFO website using one’s UAN and password. 
  • Following this, one needs to access the one member – one EPF account (transfer request) in the online services tab. 
  • Verification of current employment details
  • Selection of either previous or current employer for claim form attestation
  • Validate with OTP based approval of UAN
  • Upon receipt of the form via the unified EPFO interface, the employer would digitally approve the EPF transfer request 
  • Print the form 13 i.e. transfer claim form and submit within 10 days to the selected employer
 
These are the procedures involved and the situations under which, one is permitted to withdraw and transfer the EPF. However, it must be remembered that the EPF is a useful tool to build a sizeable corpus towards one’s retirement years. Further, the corpus is protected and interest as well as accumulated corpus is tax-free, PF should form a core part of your fixed income investments and so withdrawal should be avoided, to the extent possible. 
 
  • Like this story? Get our top stories by email.

    User

    COMMENTS

    Madhu Jewellery Vetti

    2 months ago

    Dear all I'm really in very bad situation pls give me chance to withdraw my pf money bcoz of my employer didn't exist me in PF portal and they are refusing to provide UAN NUMBER

    PLEASE IF ANYONE KNOW PLEASE SHARE HERE

    Chandragupta Acharya

    2 months ago

    Very useful article. Thanks

    ROHIT SAXENA

    2 months ago

    Its sad that EPFO is openly violating the SC order and no one is bothered to take notice. As per SC order on Aadhar, Aadhar is not mandatory for those who earn more than 15K, but EPFO insist for Aadhar for opening account.

    REPLY

    Mukunda Deka

    In Reply to ROHIT SAXENA 2 months ago

    It is easy to target salaried/ white money earner middle class. They are sand witched by taxes and lots of other new tactics. They have no priviledge card to enjoy any thing on concession. A salaried tax
    Black money earners still amassed huge money ebrry day. They donot make it whole as earnings. They even did not forego the LPG susidy.

    bharat Rajyaguru

    In Reply to Mukunda Deka 2 months ago

    Bharat rajyaguru plz help I am 7 year countinyu pf and this time deseboll to 60 /work EPFO any help????

    Personal Finance   Sponsored Post
    5 Reasons To Invest Your Bonus In A Bajaj Finance Fixed Deposit
    It is that time of the year, when you receive your appraised salary along with bonuses, which could be a compelling reason to go on a spending splurge. While a retail therapy may sound too good to be true, it is always advisable to put your salary to good use. One of the best ways to utilise your bonus and salary is to save up for a short-term goal. 
     
    Stacking your savings in a saving account however, is not the answer. Instead, you can consider a safer investment option like a Bajaj Finance Fixed Deposit – which ensures guaranteed returns. If you’re wondering why you should invest in a Bajaj Finance Fixed Deposit, here’s what you need to know. 
     
    1. Get one of the highest interest rates
     
    The past year is testimony to why you should invest in stable instruments. In terms of yields, FDs gave some of the best 1-year returns at 6.5%, while some equity funds ate into the invested capital, offering negative returns. Bajaj Finance FD, on the other hand, offers interest rates as high as 8.60% for new investors, 8.85% for existing customers and 8.95% for senior citizens. This is applicable when you take at least a 3-year FD with interest payouts at maturity. 
     
    With these lucrative interest rates, you can surely make your savings grow up to 50% more, by investing for up to 5 years.
     
    To understand how this works, see how a bonus of Rs. 25,000 could grow up to 50% more, with a Bajaj Finance Fixed Deposit.
     
     
    2. Guaranteed returns with complete safety
     
    If you’re worried about the safety of your investment, fret not. Your returns are guaranteed, with no effect of market fluctuations. Bajaj Finance Fixed Deposit has the highest credibility ratings of FAAA by CRISIL, and MAAA by ICRA. You can hence, be sure of the safety of your investment. 
     
    3. Forecast your earnings and monitor them with online tools
     
    You can determine the amount of earnings at maturity with the Bajaj Finance FD calculator basis the tenor and investment amount. With this information, you can decide whether you wish to ladder your FDs to ensure liquidity from time to time while still enjoying high returns, or take home a lump sum amount. In addition to this, you can track your investment seamlessly, through an online account. 
     
    4. Customise your investment through payouts 
     
    Bajaj Finance lets you align your investment to your financial goals by offering you two variants – you can either invest for wealth creation by opting to receive the interest on maturity, or choose frequent payouts. If you opt for the latter, you can fix the frequency of payouts to a monthly, quarterly, bi-annual or annual basis.
     
    5. Invest instantly, without any hassle
     
    Upon receiving a bonus, you don’t have to worry about completing tedious procedures to start your investment. While you can visit your nearest Bajaj Finance branch, you also have the option to start investing online, from the comfort of your home or as you commute to work. 
     
    With the promise of returns amounting to 50% of the invested sum and a minimum deposit amount of just Rs. 25,000, there’s no reason to hesitate before investing in a Bajaj Finance FD. 
     
     
  • Like this story? Get our top stories by email.

    User

    COMMENTS

    raj lee

    2 weeks ago

    what about TDS

    bharat Rajyaguru

    2 months ago

    I am 7 year countinyu EPFO and this time I am deseboll 60/parson any help EPFO???

    bharat Rajyaguru

    2 months ago

    Plz help

    Ramkaran Dhiman

    2 months ago

    Kya digital signature k bin pf withdrew kiya ja sakata h

    Raj A

    2 months ago

    We cannot believe these rating agencies anymore... they just go wrong everytime when the company is not performing well ...also these rating agencies miserably failed and given false ratings to companies which failed

    Madhu K R V

    2 months ago

    Guaranteed, I don't believe because the credibility of CRISIL & ICRA is doubtful. Sometime back these companies gave same rating to DHFL and see the fate of investors who trusted these rating companies. We can't question them and the you who say its Guaranteed.

    Personal Finance   Sponsored Post
    5 Truths that will make your Financial Planning easy!
    Credit card bills to pay.
    Outstanding personal loans. 
    Late bill payments. 
    Insufficient money coming in to cover up the required spending. 
     
    When it comes to money, life is not simple. You may be worried about debts, insufficient retirement kitty, and other financial woes that may arise due to poor financial planning. You would lead a more enjoyable life when you are not stressing about bills and have sufficient money in the bank. The good news is that it is possible. You only need some structure that will make your financial planning easy. Get your money stuff on track with these five truths. 
     
    1. Financial illiteracy is costing you a lot 
    India is home to 17.5% of the world’s population but nearly 76% of its adult population does not understand even the basic financial concepts. - LiveMint
     
    When will you be financially stable to buy your dream house?
      
    You can quickly answer this question if you are acquainted with the ‘RULE of 72.’ Watch this insightful video to know more about this rule.  
     
    A little financial knowledge can be disastrous. You may be taking care of several financial avenues, including investment portfolio, retirement corpus, insurance plans and many more, but are you sufficiently informed about money to make wise and precise decisions. Financial literacy serves as an up-to-date foundation and helps you understand money – how it works. Being financially sound regarding money enables you to take care of its management, investment and expenditure to successfully fulfill the monetary milestones of your life. 
     
    2. Saving 10% won’t get you through retirement
    Life expectancy in India has increased by 11 years since 1990.World Economic Forum
     
    Your retirement plan is more than just contributing toward your employee provident fund (EPF) and public provident fund (PPF). Have you ever calculated your retirement corpus? If no, you must watch this video to be informed of the importance of retirement plan. If yes, did you consider life expectancy as a deciding factor? Increased life expectancy means a long life after retirement. It gives you several additional years to lead an enjoyable retired life only if you have saved sufficiently for those years. You need to maintain the same lifestyle as you currently have. Rising inflation rate and increasing expenses demand a large corpus for your retirement. Between 1990 and 2017, India’s HDI value rose from 0.427 to 0.640, an increase of nearly 50%. It means that by 2050, India’s average life expectancy will be 74.2 years. It means you need to save enough for all those additional years. Thereby, be an early bird and invest in the right avenues to build a decent retirement corpus. 
     
    3. You are losing a lot due to the cost of delayed investment
    Are you losing money due to the cost of delayed investment? Maybe! Successfully investment doesn’t mean taking high risks and expect 20% returns, or make bets or wait for a jackpot. You can safely let your money grow through compounding. The concept of compounding is simple, yet powerful. Benjamin Franklin once wrote somewhere about compounding: '''tis the stone that will turn all your lead into gold. Remember that money is of a prolific, generating nature. Money can beget money, and its offspring can beget more.''
     
    What is Cost of Delayed Investment? According to Wikipedia - The accrued interest on the investment for the duration of the delay can have a significant effect on the net returns. The cost grows with the period of the investment; the longer the investment is delayed, the higher the cost is. Watch this short video to know more about Cost of Delayed Investment.
     
    Thereby, follow three golden rules diligently – 1. Start early 2. Have patience 3. Start with as much as you can and let the magic of compounding work on your investment. For example, if a person starts with a monthly investment amount of Rs 2,000 per month at the age of 35 for the next 25 years, the maturity amount will be 26.8 Lakhs, but if starts the same investment at the age of 25 for next 35 years, the amount will be 76.6 Lakhs. 
     
    4. Cost of inflation is swaying your returns
    Lack of financial literacy comes as the biggest hindrance to building wealth and a secure financial portfolio. Inflation is one such factor which is often overlooked by investors. Cost of inflation will evidently impact your returns too. As mentioned in the video link above - you would wish to maintain the same lifestyle after retirement as you are currently living. But, the food costs, petrol prices, airfares and the price of every other commodity will escalate due to inflation which will eventually drive up the cost of living. Your investment should be sufficient to fetch enough returns to enable you meet this cost. The key is to put money in different investment avenues including ones that have historically succeeded in keeping up with the pace of inflation. 
     
    5. Common financial pitfalls may distort your financial plan
    Life is too short to make financial mistakes. So, rather than trial and error approach, it makes more sense to learn from the mistakes of other people. Always consider your financial goals in mind before you start investing. Never start with vague goals. Be clear, specific and detailed with your goals. For example, if you want to save for your child’s education, it is better to invest money in a child plan rather than FDs or ELSS. A child plan will give you a peace of mind that someone is present to take care of your child’s education even in your absence. Similarly, funneling your money to too many financial products can result in dilution of returns rather than diversification. Keep reviewing your performing and nonperforming investments and change them when required. 
     
    The journey to a regret-free financial life starts by making calculated decisions. A foolproof financial plan not only depends on investing in the right avenues, but also ensuring that you can drive out maximum gains out of your hard earned money.  
     
    Financial planning is like navigation. If you know where you are and where you want to go, navigation isn’t such a great problem. It’s when you don’t know the two points that it’s difficult. – Venita VanCaspel
     
  • Like this story? Get our top stories by email.

    User

    We are listening!

    Solve the equation and enter in the Captcha field.
      Loading...
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email

    BUY NOW

    online financial advisory
    Pathbreakers
    Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
    online financia advisory
    The Scam
    24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
    Moneylife Online Magazine
    Fiercely independent and pro-consumer information on personal finance
    financial magazines online
    Stockletters in 3 Flavours
    Outstanding research that beats mutual funds year after year
    financial magazines in india
    MAS: Complete Online Financial Advisory
    (Includes Moneylife Online Magazine)