Finance

A Quick Guide to Withdraw Employee Provident Fund

As per a report of 2018, around 1.2 crore individuals were added as new subscribers under the Employee Provident Fund scheme in 11 months. The report further highlighted that around 31.36 lakh subscribers belonged to the age group of 22 to 25 years.

The popularity of this scheme can be accredited to its galore of features and associated benefits like – tax savings and stable returns. Additionally, easy withdrawal of Provident Fund online makes it a potent emergency corpus. Nonetheless, EPF holders must be aware of the steps involved and documents required to withdraw their funds in advance to streamline the process accordingly.

Required documents

Here’s a list of the vital documents that are required to withdraw an Employee’s Provident Fund online –

  1. Form 19 – For the settlement of EPF.
  2. Form 10C – For EPS withdrawal.
  3. Form 10D – For availing pension post-retirement.
  4. Form 31 – For partial withdrawal.
  5. Bank account statement.
  6. Proof of address.
  7. PAN card.
  8. Aadhaar card.
  9. Revenue stamps.
  10. One cancelled cheque.

Consequently, applicants should make sure all these documents contain accurate and up to date information. By keeping these in handy, you would be able to complete the withdrawal process seamlessly. However, you should make sure that you are eligible to withdraw your fund.

Eligibility criteria

Individuals who have been unemployed for two consecutive months can withdraw their Provident Fund online. However, only 75% of the total fund can be withdrawn a month later in case of unemployment. Consequently, the remainder would be transferred to the new account once employed.

Likewise, EPF holders who want to opt for a partial withdrawal of their deposit for specific purposes would be required to special eligibility conditions.

For example, individuals who have been actively employed for 3 consecutive years would be considered eligible for partial withdrawal to repay their housing credit.

Having a fair knowledge of the same will come in handy. It will also help you to use your EPF money meaningfully.

Steps to withdraw employee provident

By following these simple steps, individuals would be able to withdraw their provident fund online –

Step 1 – Visit the official UAN member portal.

Step 2 – Sign in with your UAN and password.

Step 3 – Click on the ‘Online Services’ option.

Step 4 – Select a suitable form type.

Step 5 – Enter the last 4-digits of your account number.

Step 6 – Click on ‘Verify’.

Step 7 – Click on ‘Yes’ to add a signature to the Certificate of Undertaking.

Step 8 – Click on ‘Proceed for Online Claim’ option.

Step 9 – Select ‘PF Advance (Form 31)’ to withdraw the Provident Fund online.

Step 10 – Select ‘Purpose for which advance is required’ checkbox against the amount required and provide employee’s address.

Step 11 – Tick on the checkbox against certification.

Step 12 – Submit the application form.

Subsequently, it must be noted that once the applicant’s employer approves the withdrawal request, the deposit amount would be credited to their registered account.

Notably, in the event individuals are withdrawing Provident Fund online post-retirement, they would avail a substantial corpus. They can keep a portion of the same in an interest-earning fixed deposit to earn steady returns on it.

Further, most financial institutions like Bajaj Finance offer individuals the facility to opt for Systematic Deposit Plan. Such a feature tends to encourage individuals with a limited source of income to invest in a financially secured future with greater ease. Investors can use a trusted FD rate calculator to opt for a suitable plan.

NBFCs also extend a higher rate of interest to senior citizens and a flexible. Retired individuals can tap into such benefits and make the most of one of the best investment options in India.

Additionally, individuals must note that they can withdraw their EPF offline as well. However, the process would not be as convenient as the online alternative. Therefore, to keep the entire process hassle-free, EPF holders should opt for Provident Fund online withdrawal.

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