Provident Fund (PF) is a mandatory savings scheme introduced by Employee Provident Fund Organisation (EPFO). The main motive behind this scheme is to secure the retirement period of the employees financially. Employer and employee contribute 12% of a part of the salary drawn by the employee every month towards PF account of the employee. EPFO offers an interest of 8.5% p.a. on the PF accounts. The interest amount accrues every month and compounds to a sizeable sum of money to fall back on after certain years of employment.
When can full funds from EPF account be withdrawn?
Withdrawal one-year prior retirement age
When the employee attains 54 years of age, he/she can raise request to withdraw full funds from PF account, or, one year before retirement – whichever is later. Employee can withdraw 90% of funds in his/her PF account without specifying any reason.
Unemployment for over two continuous months
If the PF member has been unemployed for over two months, the member can withdraw 100% funds from his/her PF account. There is no age limit for this and no other criteria to be met. Gazette officer has to attest the request raised by the member in order for funds to be released.
To invest in Varishtha Pension Bima Yojana
When the employee attains the age of 55 years, he/she can raise request to withdraw 90% of PF funds to invest in Varishtha Pension Bima Yojana. After the withdrawal request is raised by the employee, it will be processed by crediting funds to Life Insurance Corporation (LIC) to invest in the Varishtha Pension Bima Yojana.
Conditions to be met to withdraw full funds from a PF account:
- Universal Account Number (UAN) of the PF account should be activated online.
- KYC should be digitally verified – Aadhar card, PAN card and bank account details.
- Mobile number and e-mail address must be registered on the UAN account.
- Date of birth mentioned in the personal details on the PF account online should be correct and as per the records.
How to withdraw PF account funds online?
In order to claim 90%-100% funds from PF account for any of the three reasons mentioned above, these steps have to be followed:
Step 1 – Log on to the official EPFO portal online here –
Step 2 – Enter your UAN, password and captcha code to login to your PF account.
Step 3 – Under ‘Online services’ tab, click on ‘Claim (Form-31, 19, 10C & 10D)
Step 4 – In the screen that appears, enter your bank account details again (the same bank account that has already been verified on your PF account).
Step 5 – Click on ‘Verify’. Confirm the Terms & Conditions specified by EPFO to proceed.
Step 6 – Click on ‘Proceed for online claim’ button.
Step 7 – Select the reason for filing claim from the drop-down menu that appears on the next screen.
Step 8 – Agree to the Terms & Conditions displayed and click on ‘Get Aadhar OTP’ to generate OTP.
Step 9 – Enter the OTP in the box that appears on the screen and submit your withdrawal request online.
Your withdrawal request is now pending approval.
Track withdrawal status on PF account
Step 1 – Log on to the official EPFO portal online here –
Step 2 – Enter your UAN, password and captcha code to login to your PF account.
Step 3 – Under ‘online services’ tab, click on ‘Track claim status’.