A Complete Guide: How To Withdraw PF Online - Loan Trivia

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Thursday, 9 July 2020

A Complete Guide: How To Withdraw PF Online

Only a well-aware HR professional can further educate his/her workforce rightly. Employees usually have numerous doubts about a lot of things. Now, when they do not find an answer to those questions, they head to their HR to ask. One such doubt is the Employee Provident Fund! Although it is one of the well-known employee benefits, often people find it difficult to understand. This is when the role of HR managers come into play. In order to help employees, HR managers have a huge responsibility to understand PF and everything related to it.


In this blog, we will talk about the Provident fund, how to withdraw pf online, and many more!

Employee Provident Fund (EPF)

EPF is one of the major platforms of savings for employees. It is considered the most beneficial investment scheme for salaried individuals in India.

PF was designed in the year 1952 with the aim of offering financial security & stability to the employees. An individual starts contributing to his/her PF account once he/she joins an organization. Employers also contribute an equal amount towards the same account.

Talking about the total contribution, both employers and employees contribute 12 percent of the employees’ monthly salary into the PF account.

Through the Employee Provident fund, employees save a portion of their monthly salary that aids them in frail days or after retirement.

Benefits

Most employees turn their back to EPF without knowing its actual benefits. Here are the top PF benefits you must know:
  • Tax Benefits
Experts say that an employee’s PF account earns interest even if it remains dormant for over 3 years. PF withdrawals are also free from tax after 5 years of employment, except if employers terminate their firm or employees quit the job.
  • Pension
As per the retirement fund body, a total of ten years of contributory membership provides employees with a lifelong pension under the Employees' Pension Scheme 1995.
  • Advance Withdrawal Option
Although experts say no to premature withdrawals, employees may use this benefit at difficult times; when there’s no other option left.

Employees are allowed to withdraw their PF funds partially after 5 to 10 years of employment. Additionally, one should also meet specific requirements such as medical treatment, home loan repayment, and unemployment for a partial withdrawal.

Eligibility Criteria

One must fulfill the following eligibility criteria to claim his or her PF funds:
  • Activate UAN, i.e. Universal Account Number
  • Verify & link Aadhaar number with UAN
  • Link Bank account & IFSC with UAN
Following the COVID-19 crisis, the government of India made amendments to EPF and its withdrawal rules recently. As per the new rules, employees do not have to submit any documents to PF withdrawal during coronavirus; so, it will be indeed hassle-free and convenient.

EPF Withdrawal

Every employee once in his/her lifetime google searches, how to withdrawal pf online? To make your withdrawal easier, here is a guide you can follow:
  • Visit Member E-Sewa portal
  • Log into your account
  • After logging into your account, hit the CLAIM button in the Online Service Section
  • Then, you will be directed to a tab where you will have to fill in your bank account details. After filling, hit the VERIFY button.
  • Next, you will be required to agree to the terms and conditions.
  • Hit the PROCEED FOR ONLINE CLAIM
  • Now, choose the withdrawing reason from the drop-down menu. (withdrawing options differ from person to person, depending on his/her eligibility)
  • After selecting the reason, you will be directed to a page where you’ll be required to enter some personal information ((such as your address) and upload some scanned documents including cheque.
  • Lastly, you will receive an OTP that needs to be entered to complete this process.
Important Points To Remember
  • You can withdraw EPF funds online only if your PF fund is held with the Employee Provident Fund Organization.
  • If your PF fund is under a private trust or your company is an exempted firm, then filing the claim process with employers is compulsory.
We hope this blog answered most of your queries related to employee provident fund. Now, that you have a clear understanding of it, be more confident the next time an employee comes to you with PF doubts. 

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