EPF Withdrawal- EPFO Online Claim & EPFO Claim Status online

Employees’ Provident Fund is a major social security scheme for employees in India under the administration of the Ministry of Labour & Employment, Government of India. Any employers (whether in the public or private sector) having more than 20 employees are required to obtain PF registration compulsorily in India and comply with PF contribution requirements.

Do you know that the employees who have made contributions to PF can withdraw money from their PF account for various reasons by making PF withdrawal online on the unified portal of EPFO? In this article, we will discuss making EPFO claim online and the documents required for EPF withdrawal.

Reasons for PF Withdrawal

Employees enrolled with EPFO can apply for a PF advance or PF withdrawal or settlement of the amount in their PF account. There can be any of the following reasons for applying for a PF advance or PF withdrawal:

• PF Settlement
• PF Pension Withdrawal Benefits (only if the service is less than 10 years)
• PF Partial withdrawal

PF Settlement

PF settlement application can be made for any of the following reasons by an employee:

• Permanent Settlement Abroad
• Ill Health of Member
• Marriage (for female members)
• Contraction/ Discontinuation of employer’s business
• Other causes which are beyond the control of the member (employee)

Full PF Withdrawal

The amount in an EPF account can be withdrawn fully or partially. In the following cases, full EPF withdrawal is allowed:

• Full EPF withdrawal is allowed at the time of retirement of an employee from employment; or
• He can make a complete PF withdrawal online when he has remained unemployed for a period of 2 months or more.

Partial PF Withdrawal

In the following circumstances, an employee can make a partial EPF withdrawal from his PF account:

Medical Treatment

On the grounds of medical treatment, an employee can make an EPF claim for PF withdrawal online. The conditions for PF withdrawal in case of medical treatment are as below:

• PF claim can be made for medical treatment of the employee himself, spouse, parents, and his/her children
• EPF withdrawal shall be allowed in case of hospitalization for any reason for more than one month
•  PF withdrawal is also allowed in case of major surgical operation
• In case of suffering from leprosy, mental derangement, cancer, paralysis, TB, or heart ailment and the employer has granted leave for such treatment
• PF withdrawal on medical grounds is allowed anytime and there is no requirement for minimum service period in this case
• PF withdrawal is allowed up to 6 months' wages of the employee.

Marriage

In case an individual has completed at least 7 years of his/her service, he can make an EPF withdrawal online on account of the marriage of the individual or his/her siblings. A PF withdrawal to the extent of 50% of the employee’s share is allowed only on this ground.

Education

• In this case, PF withdrawal is allowed to an individual only if he/she has completed at least 7 years of service.
• Withdrawal from a PF account is allowed only for post-matriculation educational expenses
• You can make a PF withdrawal claim only for your own education or for the education of your siblings

Residential House

EPF withdrawal for the purpose of purchase of land or purchase/ construction of a house is subject to the following conditions:

• The employee must have completed at least 5 years of service
• The land or house should be purchased/ constructed in the name of the employee or his/her spouse or jointly in the name of the employee and spouse
• The property should be duly registered and proof of such registration must be submitted.
• The maximum allowable PF withdrawal amount is 36 times of monthly wages in case of the purchase/ construction of a house and 24 times monthly wages in case of the purchase of land.

Repayment of existing housing loan

EPF withdrawal online is allowed for repayment of existing housing loans subject to the following conditions:

• Completion of at least 10 years of the service period
• The property should be in the name of the employee or in the name of the spouse or in the joint name of the employee and spouse
• If the employee has already been allowed PF withdrawal for the purchase of land or purchase/ construction of a house, he will not be allowed EPF withdrawal for home loan repayment
• Maximum PF withdrawal allowed is 36 times of monthly wages of the employee
• The employee shall furnish a property deed, home loan sanction letter & other required documents as proof to EPFO
• PF claim in this case is allowed both from the employee and employer’s contribution
• EPF withdrawal for home loan repayment is allowed only once in the lifetime of the employee

Renovation of House

The following conditions are to be satisfied for PF withdrawal for the purpose of renovation/ repairs or alteration of the house:

• EPF withdrawal for this purpose is allowed only once in the lifetime of the employee
• The property subject to repairs/ renovation should be in the name of the employee or in the name of the spouse or joint name of the 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 employee must have completed at least 10 years of the service period
• EPF withdrawal to the extent of 12 times of monthly wages of the employee is allowed.

Before Retirement

As soon as the employee attains the age of 57 years, he is eligible to make a PF online claim of up to 90% of his EPF contribution.

PF Withdrawal Form

First and foremost thing to keep in mind is that the employee should have UAN linked to Aadhaar for EPF withdrawal. An employee having a valid UAN can file PF online claim on the EPFO portal.

About Taxwink:

Taxwink is a leading Taxation, HR & Corporate consultancy firm catering to clients across India. We provide expert services for PF withdrawal & making claims relating to EPFO. For PF withdrawal online assistance connect 09660930417.