A member’s Provident Fund Account (PF account) receives interest if certain conditions are met. When you retire or terminate your employment, you can take advantage of it.
In India, Employees’ Provident Funds (EPFs) are social security and savings schemes for employees. The PF registration and contribution regulations apply to employers with 20 or more employees.
PF Withdrawal – Application and Documents
Unified Portal, employees who have contributed to PF can withdraw money from their accounts for a variety of reasons. PF withdrawal applications and documentation are examined in this article.
PF Withdrawal Reasons
The amount in an employee’s PF account can be withdrawn or advanced. A PF advance or withdrawal may be requested for the following reasons:
When you withdraw your pension (only if you have less than 10 years of service) you will receive the following benefits:
Part of the PF is withdrawn
- If an employee wants to settle their PF account, he or she may file an application for the following reasons:
- The employer’s business is being contracted or discontinued due to the member’s illness
- The member cannot control other factors
- (For females) Marriage
- Taking up permanent residence abroad
Entire PF withdrawal
It is possible to withdraw part or all of the funds in an EPF account. EPF withdrawals are allowed in the following situations:
- EPF balances can either be withdrawn entirely or partially at retirement
- Individuals who are unemployed for more than two months can take full advantage of their EPF benefits. A gazetted authority must certify unemployment in order to claim the full amount of EPF.
Partially withdrawing PF
Unless certain conditions are met, partial withdrawals of EPF funds are not permitted. Circumstances and conditions are as follows:
After seven years of employment, an employee may withdraw 50 percent of his or her EPF contributions if he or she marries, has a child, or has siblings.
EPF contributions may be withdrawn in partial payment for education for an individual or for their children. Additionally, withdrawal can only be made for post-matriculation educational expenses if the individual has served for at least seven years.
Land purchase or construction of a house
- To withdraw EPF for the acquisition of land or the construction of a home, you must meet the following conditions/restrictions:
- It is recommended that five years of service be completed
- In order to purchase/build the house/land, the employee’s husband’s name must be on the title, or the employee and spouse’s names should be on the title
- The maximum amount that can be spent on land acquisition is 24 times monthly income, while the maximum amount that can be spent on home purchase/construction is 36 times monthly income
- There should be no disputes over the property, and it should be legally registered, and documentation of such registration should be provided
- Repayment of Existing Home Loans is Restricted Withdrawals from EPF are permitted only if they are required to repay an existing home loan
- Ten years of service have been completed by the employee
- In his lifetime, he can withdraw only one amount to repay the house loan
- Employees who can withdraw EPF for home purchase, acquisition, or construction will not be able to withdraw it for home loan repayment. Employees can withdraw either for buying/building a home or for repaying a home loan; withdrawals in both cases are not permitted.
- An employee’s property must be in his or her name, or jointly in his or her name and that of his or her spouse
- Employees are allowed to withdraw 36 times their monthly income as a maximum
- In order to prove eligibility, the Employee Provident Fund Organisation (EPFO) office requires a house agreement, a home loan sanction letter, and other relevant documents.
- Contributions made by employees and employers can both be withdrawn.
- Renovation of a house
- An employee can withdraw EPF only if the following conditions are met.
- At least ten years of service should have been completed by the employee
- EPF withdrawals can only be made once in a lifetime by employees for home renovations, repairs, or changes
- A property must be owned either by the employee, his or her spouse, or jointly by them both.
- There is a maximum permissible withdrawal of 12 times the employee’s monthly salary for residences that require renovations, repairs, or alterations.
- Employees are only eligible to withdraw their personal contributions.
Prior to retirement
At 57 years old, EPF withdrawals of up to 90% of the cumulative amount are allowed, plus interest, under EPF laws. Employees who reach the age of 57 can take 90% of their EPF contributions.
Attention to Medical Needs
EPF funds can be withdrawn for medical treatment by employees. Medical withdrawal requirements are very liberal, as detailed below.
- Employees, their spouses, parents, and children will receive medical treatment
- In the event that you are hospitalised for more than one month for any reason, withdrawal is permitted
- Withdrawal is also permitted in the event of a significant surgical procedure
- Employers who allow their employees to take time off for medical treatment are entitled to unemployment benefits in the case of leprosy, mental illness, cancer, paralysis, tuberculosis, and heart disease.
- A withdrawal can be made at any time, and there is no minimum number of years of service required
- Salary withdrawals are allowed for up to six months.
Withdrawal of PF Documents
In order to withdraw PF, the employee must submit a PF withdrawal application to the EPFO office. Employees must submit the following documents in addition to the withdrawal form:
- Withdrawals for housing loans, home/flat acquisitions, construction, additions to existing houses, or loan repayments
- The Declaration Form/Utilization Certificate needs to be updated
- Shutdown or lockout of the factory
- Documentation is not required
- An illness in the family
- A doctor’s certificate and an employer’s certificate declaring the member is not eligible for ESIC benefits
- An alliance between oneself, one’s son, one’s daughter, one’s brother, one’s sister
- It is necessary to have a marriage certificate
- Equipment is purchased by physically disabled people
- Medical certificates are required
- Investment in Varishtha Pension Bima Yojana
- It is possible to transfer 90% of the total PF balance to LIC
To withdraw funds from your EPF account and send them to your bank account, you must have your employer approve your withdrawal request.