AT THE TIME OF RETIREMENT / ATTAINING AGE OF 58 YEARS
According to the rules prescribed for withdrawal under the EPF Act, to claim full PF settlement, one has to retire from service after attaining 58 years of age. The total PF balance includes the employee’s contribution and that of the employer, along with the accrued interest. In addition, he will be eligible to get the Employees’ Pension Scheme (EPS) amount as well depending on the years of service.
BEFORE THE TIME OF RETIREMENT / ATTAINING AGE OF 58 YEARS
But what if someone decides to quit his job before reaching 58? Under the existing rule, employees who resign from a job before they turn 58 years of age can withdraw the full PF balance (and the EPS amount depending on the years of service), if he is out of employment for 60 straight days (two months) or more after leaving a job.
PF DEPARTMENT SCHEME FOR EASE OF PF WITHDRAWAL
To withdraw the PF (Employer & Employee) Amount along with EPS Amount, the EPFO has launched a ‘Composite Form’ to take care of withdrawals, transfer, advances, and other related payments.
Before you start the withdrawal process make sure Balance of all your previous Employment PF Accounts has been transferred under current employment. The total service in the present establishment as well as previous organizations/companies will be taken into account and therefore, it is advisable to transfer all your previous companies PF amount into current.
To Transfer PF Balance from Previous Employer to Current, You may click here
Should I early withdraw my PF Balance ?
Provident Fund amount is a part of retirement benefit that you save to ensure enough money on retirement. Provident Fund is a great financial investment to help you save a little amount every month and that too at a great interest rate of 8.55% P.A. (Previously 8.75%). Interest earned on Provident Fund Amount is a Non-Taxable Income but must have to withdrawal after completion of 5 years of Provident Fund Account. Therefore, one should never early withdraw PF amount until unless in extreme need.
IN CASE OF CHANGE OF EMPLOYMENT (JOB SWITCH)
Prefer to transfer PF Balance instead of withdrawal.
Provident Fund amount is a retirement benefit for an employee and one should save it for retirement. It is an essential saving of an employee which help the employee after retirement from service.
Ministry of Labour & Employment & Employee Provident Fund Organization under the Digital India Scheme made the transfer of PF Amount from old to new employer easy fast and online.
Amount deposited in Provident Fund is Non-Taxable under section 80C of the Income Tax Act, if withdraw after 5 Years of the opening of Provident Fund Account.
Steps to apply for EPF withdrawal online:
Step 1: Go to the Member UAN portal by clicking here
Step 2: Login with your UAN Number, password and entering the Captcha.
Step 3: Then, click on the tab ‘Manage’ and select KYC to check whether your KYC details such as Aadhaar, PAN and bank details are correct and verified or not.
Step 4: After the KYC details are verified, go to the tab ‘Online Services’ and select the option ‘Claim’ form the drop down menu.
Step 5: The ‘Claim’ screen will display the member details, KYC details and other service details. Click on the tab ‘Proceed For Online Claim’ to submit your claim form.
Step 6: In the claim form, select the claim you require i.e full EPF Settlement, EPF Part withdrawal (loan / advance) or Pension withdrawal, under the tab ‘I Want To Apply For’. If the member is not eligible for any of the services like PF withdrawal or Pension withdrawal, due to the service criteria, then that option will not be shown in the drop-down menu.