How To Withdraw Pension Contribution Online

How to Withdraw EPF Contribution?

The Employees' Provident Fund, or EPF is a well-known savings programme launched by the EPFO with oversight from the Indian government.

Written by : Raman Sharma

Reviewed by : Akanksha Gangvany

Akanksha Gangvany

2023-01-06

874 Views

11 minutes read

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EPF is a mandatory pension scheme for professionals of private and public sector companies with 20 or more employees. It is a part of the Employees’ Provident Fund and Miscellaneous Provisions Act 1952 and is managed by the Employees’ Provident Fund Organisation (EPFO).

The amount of money needed after retirement can vary depending on a person's lifestyle, fixed commitments, and health. Employee Provident Fund (EPF) plays a vital role during your retirement. The money in the provident fund can be used to purchase an annuity or taken as a lump sum when the employee retires.

Let us understand the EPF withdrawal process in detail.

Table Of Content:

What Are EPF Pension Withdrawal Rules? 

The following are some of the pension withdrawal rules that you should remember if you are looking for the answer to how to withdraw PF:

1. A person can not take out all or a portion of their PF funds before they begin working.

2. If an individual has not worked for at least a month, they may withdraw up to 75% of the funds, and if they have not worked for two months or more, they may withdraw the entire amount.

3. Creating Form 15H/Form 15G will not prevent the TDS deduction from occurring.

4. Within five years of opening an EPF account, if a person wishes to withdraw Rs 50,000 or more from the corpus, a TDS of 10% (if the person has a valid PAN Card) or 30% (if the person does not) will be charged.

5. Only after working for five years one can apply for a loan against PF savings.

6. When a person changes jobs, they are not obliged to transfer the balance from their previous PF account to their new one. The money can be easily transferred if the necessary forms have been filed and your UAN is active.

7. If an individual has been unemployed for at least two months, or if the start date of their new employment is more than two months following the final day of employment with their old employer, they can withdraw their whole PF balance.

When can EPF be Withdrawn?

An employee cannot withdraw their EPF contribution as and when they want. There are certain situations under which EPF withdrawal is allowed.
 

Conditions Allowed for EPF WithdrawalTenure of the Employee’s ServiceLimitations (If Any)
Buying or construction of a houseContinuous service of 5 yearsOnly the PF account holder or their spouse can apply for withdrawal.
Medical emergency-PF account holder, their parents, spouse or children can apply.
Repayment of home loanContinuous service of 3 yearsOnly the PF account holder or their spouse can apply.
Home renovationContinuous service of 5 years from the date of completion of the constructionOnly the PF account holder or their spouse can apply.
WeddingContinuous service of 7 yearsOnly the PF account holder, their siblings, and/or their children can apply for withdrawal.

Who is Eligible to Withdraw Contribution from EPF?

12% of an employee’s dearness allowance and basic salary goes toward their EPF. This is equally contributed by the employer. Although employees generally withdraw the corpus post-retirement, they still have the option to withdraw it in case of emergencies. But is there any eligibility to withdraw the contribution that should be met by the employee?

Listed below are the eligibility criteria for withdrawing EPF:

  • Before one year of retirement, an employee can withdraw 90% of their corpus.

  • After one month of unemployment, an employee can withdraw 75% of the corpus and the remaining corpus will be transferred to the new EPF post getting re-employed.

  • Employees should have an active UAN, and their bank details must be linked to their UAN, including AADHAR and PAN.

How to Withdraw Employee Provident Fund (EPF)?

Employee Provident Fund (EPF) can be withdrawn both online and offline. However, you can only choose the online mode of EPF withdrawal if your AADHAR is linked to your UAN.

Let us discuss about both the processes of withdrawal – offline and online.

How to Withdraw EPF Offline?

Step 1: Download the composite claim form (AADHAR or Non-AADHAR) by visiting the EPF website.

Step 2: Users who are applying through the Composite Claim Form need to provide their bank account details and link their AADHAR number with their primary account number.

Note: The activation will be done through the portal.

Step 3: Users who are applying through the Composite Claim Form (Non-AADHAR) need not do the AADHAR seeding.

Step 4: Submit the form to the jurisdictional EPF Office post filling the details.

Did You Know?

Employers are supposed to make a matching contribution, but they are not legally bound to do so. In most cases, the amount is included in the gross salary.

Source: Business Today

Claim Settlement Ratio

How to Withdraw EPF Online?

Step 1: Visit the member e-Sewa portal and log in with your UAN and password.

Step 2: Choose a claim form available under the “Online Services” option.

Step 3: Provide the bank account number linked with your UAN and verify the details.

Step 4: Click on “Proceed for Online Claim” and select the reason from the drop-down list.

Step 5: Provide your address and select “Get AADHAR OTP”.

Step 6: The online claim form will be submitted once you enter the OTP that you would have received on your mobile number.

Benefits of Withdrawing EPF Online 

Withdrawing your EPF contribution online has a lot of benefits. Listed below are two benefits of withdrawing your EPF online:

Less Processing Time

Within 15-20 days of application, the amount that you have claimed will be credited to your bank account.

Easy Withdrawal Process

As the entire process is online, you do not have to step out of the comfort of your home. Also, less paperwork is involved when you apply for it online. Additionally, you do not have to visit your previous employer for verification.

Documents Required to Withdraw EPF

To withdraw EPF, you need to submit the following listed documents:

  • An attested copy of the applicant’s KYC documents, which can be any one of the following- Aadhar Card, Voter ID, Passport, or Driving License.
  • A cancelled cheque, updated bank passbook or any other document that can be used to verify the applicant’s bank account details.
  • ITR Form 2 and ITR Form 3 are required if the employee withdraws the EPF before 5 years of continuous employment.
  • Bank account statement
  • Revenue stamps if you opt to receive the amount in your bank account.
  • A duly filled EPF claim form.

What is the Limit of EPF Withdrawal?

If you decide to withdraw from your EPF account before your retirement, there are certain limitations. During certain exigencies, you will be allowed to withdraw some portion of the EPF. Only after retirement, you will be able to withdraw the entire corpus.

Below is the EPF withdrawal limit on certain situations:
 

Situations when you can Withdraw EPFEPF Withdrawal Limit
Medical Emergency6 times the current monthly salary, or total corpus – whichever is lower
Wedding50% of the total EPF contributed till date
Repayment of Home LoanUp to 90% of the EPF contribution
Home Renovation12 times the current monthly salary
Unemployment or Job Loss

- 75% of the EPF contribution after 1 month of unemployment

- 25% of the EPF contribution after 2 months of unemployment

RetirementTotal corpus

Can you Withdraw EPF Contribution Without an Aadhaar Card? 

Yes. You can withdraw your EPF contribution without an AADHAAR card, but you will need to provide your PAN number, bank account number, and IFSC code to do so.

  • You may provide your PF number or the UAN

  • Fill out the Composite Claim Form and mention the PF number

  • Submit your PAN (Permanent Account Number)

  • Form 15G or 15H-2 copies are to be attached. This applies if you have not worked for that employer for the preceding five years.

How to Withdraw EPF for a Deceased Person?

If an individual has passed away during the tenure of their service, the nominee can make a claim. The procedure for claiming the EPF contribution of the deceased person, the nominee has/have to follow the below-mentioned steps:

Step 1: Nominee has to visit the EPF website and choose “Death Claim Filing by Beneficiary” option.

Step 2: Enter the details such as UAN, name of the nominee, their date of birth, AADHAR details of the nominee.

Step 3: Click on “Authorised Pin” and an OTP will be sent to the registered mobile number of the nominee.

Step 4: Once the OTP has been entered, the death claim can be filed by the nominee.

Taxation Rules on EPF Withdrawal

The portion of salary that is contributed towards EPF is completely tax-free. However, whenever you withdraw an amount from your EPF, it is liable for tax deduction. The amount of tax that will be deducted depends on the service tenure of the employee at the time of withdrawal.

Below is a detailed table on the taxation rules of withdrawing EPF:

EPF Withdrawal ConditionTaxation Rules
Withdrawal of more than Rs. 50,000 before completing 5 years of continuous service

10% TDS is applicable if PAN is provided. Or else, 30% TDS plus tax will be applicable.

If you provide Form 15G/15H, no TDS will be deducted.

Withdrawal of EPF after completing 5 years of continuous serviceTDS is not applicable
Transferring funds from EPF to NPSTDS is not applicable
Withdrawal of EPF when the employee doesn’t have 5 years of continuous serviceEntire EPF amount is taxable

 

Glossary:

Composite Claim Form: Forms 19 to 31 have been replaced by the new EPF composite claim forms (Non-Aadhaar). Workers whose Aadhaar number and bank account information are not displayed on the UAN portal and whose UAN has not yet been activated can fill out these forms.

Undertaking Certificate: A formal document known as the letter of undertaking is used by one party to guarantee another that they have complied andl comply with a legal obligation or demand.

UAN: Universal Account Number, or UAN, is a number that EPFO assigns. A person's multiple Member IDs assigned to them by various organisations will be consolidated under the UAN. 

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FAQs Related to EPF Withdrawal Process

The time taken for the claims to be cleared depends on the mode of application chosen by the applicant. If the applicant has claimed for the withdrawal online, it may take up to 3 working days. However, with an offline mode of application, the settlement may take up to 20 days.

Yes. You can increase the amount that you are contributing towards your EPF up to 100% of your basic pay. But such contribution goes to Voluntary Provident Fund (VPF).

Withdrawing EPF before retirement comes with certain restrictions.

Below mentioned are a few conditions when you can withdraw EPF along with the number of times you can withdraw it:

Withdrawal ConditionsNumber of Times you can Withdraw EPF
Marriage3 Times
Buy a land/Construction of house1 Time
Medical emergencyNo defined limit
Funding post-matriculation education3 Times

No. You no longer need your employer’s permission for partial or complete withdrawal from your EPF corpus.

The Employee Provident Fund Act of 1952 permits you to take out the entire PF amount and the Employees' Pension Scheme amount (EPS amount) when you resign from your employment after being fifty-eight years old.

Depending on PF account term, tax laws, and other considerations, NRIs can be required to pay tax on PF withdrawals. Cess and surcharge will be applied to the TDS (Tax Deducted at Source) for non-resident members of EPFO (Employees’ Provident Fund Organisation). 

If a PF account holder has given up their job and has been jobless for more than a month, they may be eligible to withdraw up to 75% of the total amount accrued. In addition, this clause permits the account holder to withdraw the remaining 25% in the event that the unemployment duration exceeds two months.

A person can keep their membership active even after they leave the establishment. Nevertheless, a PF account will not accrue interest after three years of no contributions being made if no contributions are made into it for three years in a row.

 

It is not necessary for the retiree to open a different pension account. The pension may be credited to the pensioner's current or savings account at any branch of the bank that they have chosen.

The person needs to be a member of EPFO. You must be at least 50 years old to receive an early pension, and you must be 58 years old to receive a regular pension. To be eligible for EPS benefits, you must serve for at least ten years.