The Employees’ Provident Fund (EPF), also known as the PF (Provident Fund), is a mandatory savings and retirement plan for employees of eligible organisations. When they retire, employees can draw on the corpus of this fund.
According to EPF rules, employees must contribute 12% of their basic pay to this fund each month. The employer makes a matching contribution to the employee’s PF account. The money saved in EPF accounts earns interest on a yearly basis.
When an employee retires, he or she can withdraw the entire amount accumulated in their EPF account. However, according to this article, one can make premature withdrawals from an EPF account if certain conditions are met. Read more about 26as form download here.
Interest rates on EPFs
For 2021–22, the EPFO has set an interest rate of 8.1 percent for Employee Provident Fund (EPF) subscribers.It was the lowest rate since 1977-78, when the EPF interest rate was 8%.
When Is It Possible to Withdraw Your EPF?
EPF can be withdrawn entirely or partially.
Withdrawal in Full
EPF can be withdrawn completely in the following circumstances:
- When a person retires
- when a person is out of work for more than two months. Individuals must obtain an attestation from a gazetted office in order to withdraw in this situation.
Individuals cannot withdraw their entire EPF balance when changing jobs if they have not been unemployed for two months or more (i.e., the interim period between changing jobs).
EPF Withdrawal Procedure
In general, EPF withdrawals can be made by submitting
- Physical implementation
- An online software application
Physical Implementation
To withdraw the EPF balance, fill out the new Composite Claim Form (Aadhaar) or Composite Claim Form (non-Aadhaar).
Claim Form Composite (Aadhaar)
- As long as you have seeded your Aadhaar number and bank account information on the UAN portal, you can use the Composite Claim Form (Aadhaar) to make a claim.
- Fill out the form and send it to the right EPFO office without the employer’s permission.
Claim Form Composite (Non-Aadhaar)
- If your Aadhaar number is not seeded on the UAN portal, you can use the Composite Claim Form (Non-Aadhaar).
- Fill out the form and submit it to the appropriate jurisdictional EPFO office along with the employer’s attestation.
It is also worth noting that, in the case of a partial withdrawal of EPF funds by an employee for various reasons as discussed in the preceding table, the requirement to provide various certificates has recently been relaxed, and the option of self-certification has been introduced for EPF subscribers. (For more information, see the EPFO’s order dated 20.02.2017.) Also know about epf withdrawal online here.
Application Form Online
The EPFO has come up with an online withdrawal service, which has made the whole thing easier and faster.
Prerequisites
- If you want to apply for an EPF withdrawal online through the EPF portal, make sure the following things are true:
- When you used your mobile phone to activate your Universal Account Number (UAN), it worked.
- The UAN is linked to your KYC, which includes Aadhaar, PAN, bank information, and the IFSC code.
- If the above conditions are met, your former employer does not have to sign off on your withdrawal application.
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