PF Withdrawal: EPFO oversees India’s EPF scheme. This mandatory savings scheme for employees working in establishments with 20 or more employees requires them to contribute a portion of their pay as well as contributions from employers; currently this rate stands at 12% of basic salary and dearness allowance, with interest accrued on deposits which can later be withdrawn upon retirement, resignation or certain specified conditions.
Employees’ Provident Fund (EPF) is a social security scheme used in many countries – India and Malaysia included – to provide employees with financial security and retirement benefits. As part of this mandatory savings scheme, both employees and employers contribute a percentage of each salary into an EPF fund; here, we will focus on those of India and Malaysia specifically.
India’s EPF system is governed by the Employees’ Provident Funds and Miscellaneous Provisions Act of 1952 and covers organizations with over 20 employees. The aim is to create a retirement corpus for employees. Both employees and employers contribute 12% of basic salary plus dearness allowance to an EPF account each month; funds accumulate throughout their working careers until retirement or other specified conditions arise, at which point withdrawal can occur from this account.
Malaysia also utilizes an Employees’ Provident Fund, or EPF, which serves as a savings and retirement scheme under the Employees’ Provident Fund Act 1991. Employees and their employers contribute an agreed upon percentage of salary to this account – currently 11% from employees and 12% from employers respectively – with contributions intended to provide financial security during retirement as well as cover specific needs such as housing, education or medical costs.
Both Indian and Malaysian EPF systems offer advantages beyond retirement, such as housing loans, medical withdrawals and education-related withdrawals. EPF plays an essential role in protecting employees’ financial wellbeing while encouraging long-term savings, easing social welfare burdens and creating an atmosphere of financial responsibility and security that benefits both employees as well as economies alike.
| Attribute | Details |
|---|---|
| Name | Employees’ Provident Fund (EPF) |
| Purpose | Retirement savings and social security scheme for employees |
| Managed by | Employees’ Provident Fund Organization (EPFO) |
| Applicability | Establishments with 20 or more employees in specified industries |
| Contributions | Both employer and employee contribute a percentage of salary |
| Withdrawal | Upon retirement, resignation, or under specified conditions |
| Additional Withdrawals | Allowed for marriage, education, housing, medical emergencies, etc. |
| Universal Account Number | Unique identification number for EPF members |
| Official Website | https://www.epfindia.gov.in/ |
| Contact Number | 1800-118-005 |
| [email protected] |
Why the account holder does not withdraw earlier:
Contents
- If you withdraw an amount from your account within five years of opening, you have to pay tax for the interest that you earned in your pf account.
- The account holder can transfer the account to another new company if you switch your job.
- Withdraw the pf amount will provide the rules of the employee and employer for some limited period of employment.
Withdraw pf amount without signature:
Getting an attestation from the employer for the withdrawal is mandatory. Get the signature from the previous employer. You have to left the job and get the name from them. Follow the pf withdrawal process that is given without an employer signature.
Withdrawal pf amount with an Aadhaar card:
- For withdrawal pf the amount, the employee chooses the member option in the official portal. One can withdraw the amount by the Aadhar card.
- The salary bank account and Aadhar card are verified via the employer, and it is enabled in the member portal.
- Activate the UAN number, and you start the withdrawal process without the signature of the employer.
- Download the new employee provident fund from the EPFO web portal. In the form, enter the required detail.
- Account number of the bank and UAN should match on the epfo site.
also, check PF transfer
Procedure to withdraw pf offline:
Now the account holder can withdraw the amount from online with Aadhar card. They are using the online platform. You can withdrawal the amount quickly without any risk. If the Aadhar number seeded with uan number employee able to withdraw faster. NOTE: Now, aadhaar is mandatory.
- First, visit the web portal and download the form based on the type.
- The fille forms have to be submitted by the cheque of the bank.
- Submit all the required details in the document, if you are withdrawing pf by the employer.
- If the application of the withdrawal is not in the employer, you can get the attestation from the manager of the bank.
- After completing the form, you just submit the attested form to the provident fund office for other approvals.
PF eligibility
If you’re referring to “PF eligibility” as in eligibility for the Provident Fund (PF) in India, here is some information that may be helpful:
The Provident Fund is a mandatory retirement savings plan for most employees in India. Eligibility for the PF is based on the following criteria:
- Age: You must be between 18 and 65 years of age to be eligible for the PF.
- Type of employment: The PF is applicable to employees working in certain industries and organizations, including factories, mines, plantations, and other establishments employing 20 or more employees. Some organizations with fewer than 20 employees may also be eligible for the PF.
- Salary: If you earn a basic salary of up to Rs. 15,000 per month, you are eligible for the PF. If your basic salary exceeds Rs. 15,000 per month, you are still eligible for the PF, but your employer is not required to make contributions beyond this amount.
- Citizenship: Indian citizens and certain foreign nationals are eligible for the PF.
If you meet these eligibility criteria, you should be able to enroll in the Provident Fund and start making contributions towards your retirement savings. Your employer will also be required to make contributions on your behalf. If you have specific questions about your PF eligibility or how to enroll in the Provident Fund, you should consult with your employer or a qualified financial advisor.
Ways to withdraw provident fund:
PF Withdrawal is not allowed if the employee is not retired from the job. The withdrawal option is switched based on your situation and now available in the web portal.
- Visit uan member Portal, https://unifiedportal-mem.epfindia.gov.in/memberinterface/.
- Click on transfer, and claims fill the bank details and verify existing members’ details.
- Click on submit the claim; you may see claim code, which helps to track the specific application. Or you all claim made to epfo by uan number.
Meanwhile, track your epfo claim status here.
Apply for pf withdrawal through UAN:
The employee must download the form and fill, submit it to the pf office. After submitting the application form, the amount can be received within three months. You can directly apply for PF withdrawal by UAN. With the help of UAN, one can use the withdrawal form online.
Apply to Pf office:
After filling the claim form, the employee has to submit directly to the provident fund office. It requires an attestation process for applying for withdrawing.
The employee gets attested by any bank manager, magistrate, gazette officer, etc. for using for the withdrawal process.
Attaching the proof employment makes it easy to withdrawal the amount from your account. So, read the above instructions to withdraw your expected amount from the provident fund account are effective.
uan number benefits.
Purposes of the PF withdrawal:
There are many purposes that the employee withdraws the provident fund for their convenience.
Marriage:
The employee can withdraw the provident fund for their self-purpose, siblings, and others’ marriage. Though, they have completed the minimum of seven years of service to remove the fifty percent of the fund.
Medical treatment:
The employee can also withdraw the provident fund for the purpose of the medical treatment. For medical use, the employee can withdraw the provident fund up to six times their monthly salary for the parents, spouse, children, and others.
Construction purpose:
If the employee wishes to buy the property for their convenience, the property must register in his or her name.
This one requires a minimum of five years of service to withdraw the provident fund for the construction purpose. It is the important one for the employee to withdraw the fund once during the function of the provident fundholder.
Loan repayment:
If the employee withdraws the provident fund for the purpose of the loan repayment option, the property must register in his or her name.
It is the mandatory one for the employee to withdraw the provident fund quickly. This one requires a minimum of ten years of service to withdraw the provident fund about the monthly remuneration of the provident fundholder.
Retirement:
The employee must be 54 years old to withdraw the amount of the provident find in their respective account. You can also withdraw the provident fund for various like the physical and mental disability.
PF withdrawal after retirement
if The person cannot withdraw the entire amount at the end of tenure. After the completion of 15 years after retirement, the account holder can expand for five years.
Advance withdrawals are permitted in the following situations such as weddings (self or children), wedding (sister or brother) or post-secondary education for children, the purchase of land the construction or purchase of a home or home loan.
Home renovations, illness as well COVID-19 expenses.Advance withdrawals have proven to benefit many members facing financial hardship due to the COVID-19 outbreak , and the resulting cut in wages.
This feature is essential to students in the student portal on the online education platform. The Grading report online will allow students to view and track their progress throughout the term and semester.
What Is “PF Withdrawal?
PF withdrawal” refers to withdrawing funds from your Employee Provident Fund (EPF) account. EPF is a government-mandated retirement savings plan in which both employee and employer contribute a percentage of each salary towards retirement savings.
- PF Amount for EPFO:
- The PF amount for the Employees’ Provident Fund Organisation (EPFO) consists of both the employee’s and the employer’s contributions. The employee contributes 12% of their basic salary and dearness allowance, while the employer also contributes 12%. This cumulative contribution constitutes the PF amount.
- Login to EPF Passbook and Claim Status:
- Visit the EPFO official website: https://www.epfindia.gov.in/
- Under the “Our Services” section, click on “For Employees.”
- Select “Member Passbook” or “Track Claim Status” from the drop-down menu.
- For the passbook, log in using your UAN and password to view your transaction details and PF balance.
- For tracking claim status, log in using your UAN and password to check the status of any claims you have submitted.
Verdict
Employee Provident Funds serve as an essential social safety net in various countries, encouraging savings and creating a secure financial future for employees. Their creation represents a collaborative effort by employees, employers and government bodies that extends beyond retirement by supporting individuals throughout their lives.