EPF is one of the most well-known and popular retirement schemes in India. The Employee Provident Fund Act of 1952 launched the program, backed by the government of India.
Both employees and employers make monthly contributions to the EPF, all through the employee's working years. Since contributions are made regularly and over a long period, it helps to build a huge retirement corpus for employees to enjoy a financially comfortable post-retirement life.
Even if you change jobs, your EPF account can be easily transferred from your previous employer to your current employer. All EPF account holders are provided with a UAN (Universal Account Number) linked with the mobile number of the account holder. The UAN is a 12-digit code that helps you check your account details quickly.
If you're wondering how to withdraw funds from your EPF account, this guide is for you. Here, we show you how you can easily withdraw funds from the account in quick, easy steps.
Additional Reading: How to withdraw from EPF if you need money due to Coronavirus?
When can you withdraw funds from the EPF account?
EPF allows two types of withdrawals – partial and complete withdrawals.
Complete withdrawals are permitted under any one of the following circumstances:
When the employee retires.
When the employee is unemployed for more than two months. In this scenario, the employee must get attestation certifying unemployment from a gazetted office.
Note that account holders are not permitted to withdraw funds completely while switching jobs. If you're changing your job, we highly encourage you to transfer your current EPF account to your new employer. This way, you can continue building your corpus using the same account.
The EPFO permits partial withdrawals under certain circumstances, provided you meet the required conditions.
|S.No.||Reason for Partial Withdrawal||Withdrawal Limit||Minimum no. of years in employment||Other Conditions|
|1||Medical Emergencies||Six times the monthly basic salary or the total share contributed by the employee, whichever is lower||NA||Includes medical treatment of self, spouse, kids or parents|
|2||Education||Up to 50% of the employee’s contribution to EPF||7 years||For the educational expenses of the account holder or account holder's children|
|3||Marriage||Up to 50% of the employee’s contribution to EPF||7 years||For the marriage expenses of the account holder or account holder's children|
|4||Construction of a house/purchase of land||For house construction – up to 36 times monthly basic salary + DA (Dearness Allowance)
For plot purchase – up to 24 times monthly basic salary + DA
|5 years||i. The asset purchased must be in the name of the EPF account holder or jointly held with a spouse
ii. The account holder can withdraw funds only once for this purpose
iii. The construction of the house should commence within 6 months
iv. Construction must be completed within 12 months
|5||Home Loan Repayment||The smaller of the following amounts:
36 times the basic salary + DA
Total corpus including employer + employee contribution along with interest
The total outstanding principal on the home loan
|10 years||i. The house must be in the name of the EPF account holder or jointly held with spouse
ii. The account holder must have a minimum of Rs. 20,000 in the EPF account.
|6||House Renovation||The smaller of the following amounts:
Up to 12 times the monthly salary + DA
Total of the employee’s contribution to EPF + interest
|5 years||i. The house must be in the name of the EPF account holder or jointly held with spouse
ii. Partial withdrawals, for this reason, are permitted twice. After 5/10 years of completion of the construction of the home.
|7||Partial Withdrawal before Retirement||Up to 90% of the total accumulated amount in the account||Withdrawal must be made within one year of retirement and after the employee reaches the age of 54.||NA|
How to withdraw funds from EPF? Step-by-Step Guide.
Account-holders can withdraw funds from the EPF account in two ways.
Offline – by submitting a physical application
Let’s take a closer look at both methods.
How to withdraw funds from EPF online?
Recently, the EPFO has introduced online withdrawal to make it easy for account holders to withdraw funds from their accounts, as per their requirements. Before you apply for online withdrawal, you have to meet certain conditions:
Prerequisites for online withdrawal:
The UAN must be activated, and the mobile number linked with the UAN must be active.
The UAN is linked with KYC documents, Aadhaar, and PAN card.
The account must be updated with the bank details – bank account number and IFSC code.
Online withdrawal of funds in the EPF account is only possible if the above conditions are met. If yes, you can proceed with the following steps:
Visit the EPFIndia online portal, and in the main "Services" tab, choose "For Employees."
You will be taken to the Member Homepage. Log into your account using the UAN and registered password. You will also be prompted to enter the Captcha Code displayed on the screen. Then, click on “Sign in.”
Once you have logged into your account, click on the "Online Services" tab and choose the option, "Claim (Form 31, 19 & 10C)."
You will be taken to the Claim screen. Here, you can find details about your account. You have to verify your bank account by entering the last four digits of your account number.
Once you verify the bank account number, click on “Yes,” on the certificate of undertaking displayed on the screen.
Click on “Proceed for Online Claim” to go to the claim form.
In the next step, you will be required to enter the type of withdrawal:
Full EPF settlement
Part withdrawal (loan/advance) – you have to choose the reason for withdrawal from the list of options available there.
Enter the amount required and submit the application.
Note that you may have to upload supporting documents, as requested by the EPFO, for partial withdrawals. Once your withdrawal request is accepted, the amount will be credited in your linked bank account within 10 – 20 days.
How to withdraw funds from EPF offline?
Online application to withdraw funds is quite easy and seamless. However, you can also submit the form offline if you wish to do so. Here are the steps to follow for offline application:
Visit the website of EPFO and download the claim form.
Print the form and fill in the required details.
Get it attested from your employer and submit it along with the required documents at your nearest EPFO office.
The amount requested will be credited in your linked bank account as soon as your claim is approved. It may take 10 – 20 days for the amount to reach you.
Now that you are aware of how to withdraw funds from EPF accounts – online or offline – you can follow the steps listed and complete the process effortlessly. However, remember that the EPF is primarily for retirement, so avoid making frequent withdrawals from it.