The Employee Provident Fund (EPF) is a saving scheme that was introduced by the Employees Provident Fund Organization (EPFO). EPF was earlier introduced for the industrial workers, but was later extended to all the salaried employees. It is a retirement savings fund created for salaried individuals established under the Employees Provident Funds and Miscellaneous Provisions Act in the year 1952.
An EPF or PF is a small contribution extended by the employees as a part of their remuneration which is 12% of their basic income on monthly basis. An amount matching to this is contributed from the employer’s end which is used to fund the employee’s retirement. However, there’s also an option for the employee to withdraw the amount before the retirement itself, just by filling the EPF withdrawal form online.
Why withdrawing your PF before-time isn’t a great idea?
An individual’s PF is a corpus which is gradually built in order to have enough funds ready during your retirement period. PF is a saving instrument to help you keep aside a small portion of your income on monthly basis at an interest rate of 8.75% p.a. This interest that is earned on the PF is completely tax free, provided it is withdrawn after 5 years of opening an account. Considering these benefits, it is not a very good idea to withdraw money unless it is absolutely necessary. If ever in the past you have tried to withdraw PF money, you would know how painful the procedure is. For one, you would have to fill up a number of forms and submit a number of documents, and then end up waiting for your money, usually for months.
But in case if you’re a first timer, here’s a guide of how you should apply for EPF withdrawal:
To withdraw your money, you would need to fill in the new claim form. The people, who have an Aadhaar number, bank details available on the Universal Account Number Portal and also have an active UAN, can directly submit the form to the EPFO office concerned. The application form would have the following points covered –
• With your details, login to UAN portal
• Review the status of your KYC details
• You can select the PF form depending on your situation – EPS (pension) withdrawal benefits, PF full withdrawal (if you have been unemployed for more than 2 months), or EPF advance (partial withdrawal for any of the purposes: Marriage, education, house expense, etc.)
• After feeding in the necessary details, you need to submit the form for which you will need an authentication OTP which is sent on the linked mobile phone number. This number should be linked to your Aadhaar and UAN as well.
• Once the form is submitted, the authorities would receive your details from UIDAI and process your form online
With all the processes being made digital, making an online EPF withdrawal claim has become really hassle-free. The online system helps in saving you from investing a lot of time visiting the PF office. All you need to do is fill the forms online at your own comfort. This is especially comfortable for people who have moved to a new city and want to refrain from travelling long distances or mailing the documents.