The interest is credited to the member’s Provident Fund Account (PF account) if certain conditions are met. It is accessible upon retirement or employment termination.
The Employees’ Provident Fund (EPF) is a savings and social security program for Indian employees. Employers with more than 20 employees are required to register with the PF and follow the contribution rules.
Application and Required Documents for Withdrawal of PF
Employees who have contributed to PF can withdraw money from their accounts for a variety of reasons by submitting an application through the Unified Portal, which can be found at https://unifiedportal-mem.epfindia.gov.in/. This article looks at the application and the required documents for withdrawal of PF online.
Reasons for Withdrawing from a PF
Employees can request an advance or a withdrawal from their PF account. Among the possible justifications for requesting a PF advance or withdrawal are:
Withdrawal of PF Part Settlement of PF An employee may file a PF settlement application for any of the following reasons: Settlement of PF Benefits from Pension Withdrawal (only if the service is less than 10 years)
Malady of the member, employer company contraction or dissolution, and other circumstances beyond the member’s control, such as marriage (for female members) or permanent relocation abroad.
The entire PF can be withdrawn An EPF account’s funds can be withdrawn in whole or in part. Full EPF withdrawals are allowed in the following circumstances:
Fully Withdrawing from a PF
An employee’s EPF balance can be completely withdrawn upon retirement, or it can be fully withdrawn if they are unemployed for more than two months. The certification of unemployment by a gazetted authority is required in order to claim the full amount of EPF.
Partially Withdrawing from a PF
The EPF can only be withdrawn in certain situations and under certain conditions.
Marriage Only after seven years of employment is it possible to withdraw fifty percent of an employee’s EPF contribution if the employee marries, has children, or siblings.
Education: Individuals can use half of their EPF contributions to pay for their own or their children’s education. In addition, withdrawal is only permitted for post-matriculation educational expenses and only if the individual has served for at least seven years.
Purchase of Land or Construction of a House EPF withdrawals for the purchase or construction of a house are subject to the following conditions and restrictions:
EPF withdrawal is permitted if it is required for repayment of an existing house loan and the following conditions are met: The employee has completed ten years of service Only one withdrawal for house loan repayment is permitted in his lifetime In other words, the employee can withdraw money to pay off a home loan or to buy or build a house or land; As proof, a house agreement, a home loan sanction letter, and any other required documents as requested by the Employee Provident Fund Organization (EPFO) office must be submitted. Withdrawals are permitted from both employee and employer contributions. Property must be in the employee’s, spouse’s, or jointly in the employee’s and spouse’s names. Withdrawals in either case are not permitted.
House Renovation An employee cannot withdraw EPF for house renovation, repair, or change unless the following conditions are met.
Employees can only withdraw EPF once in their lifetime for house restoration, repair, or change. The property must be in the employee’s name, the employee’s spouse’s name, or jointly in the names of the employee and spouse.
The home that needs to be renovated, fixed, or changed must be at least five years old when it was finished. The maximum amount that can be taken out is 12 times the employee’s monthly pay. Only the employee’s personal contribution can be taken out.
Know more about: Provident Fund Registration online
EPF withdrawals of up to 90% of the cumulative amount, plus interest, are permitted at the age of 57 years under EPF laws, which state that the retirement age is 58 years. Simply put, an employee can withdraw 90% of his EPF contribution once he reaches the age of 57.
Medical Care Employees can use their EPF funds to pay for medical care. In the case of medical treatment, the withdrawal requirements are extremely permissive, as will be discussed below.
Medical care for the employee, his spouse, parents, and children is allowed if the employee is hospitalized for more than a month for any reason. If the employee is afflicted with leprosy, mental illness, cancer, paralysis, tuberculosis, or heart disease and their employer has allowed them to take time off to get treatment for those conditions, they are eligible for unemployment benefits. They can leave at any time, and there is no minimum number of years of service required. They can leave for up to
Documents Required for PF Withdrawal An employee must submit a PF withdrawal application to the EPFO office in question in order to begin a PF withdrawal. For online PF withdrawal, the employee must include the following documents in addition to the withdrawal form 15g:
PF withdrawal for a housing loan, site/home/flat acquisition, building, addition to an existing dwelling, or housing loan repayment It is necessary to obtain a new Declaration Form/Utilisation Certificate Factory lockout or shutdown There is no documentation required Illness of a family member A marriage certificate is required Physically disabled people purchase equipment It is necessary to possess a medical certificate Varishtha Pension Bima Yojana investment It is possible to transfer 90% of the total PF balance to LIC.