New Delhi: Most employees working in the corporate sector need pay a monthly contribution towards Employees Provident Fund or EPF, which is one of the key savings schemes under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and falls under the ambit of Employees’ Provident Fund organisation or EPFO. If you are an employee working in an organisation with over 20 employees, you probably know what is Employees Provident Fund or EPF. In some cases, certain organisations are covered by EPF even if the number of employees is below 20.
As mentioned earlier, an employee working in a corporate-setup has to pay a monthly contribution towards EPF and an equal contribution also comes in from the company and is included as a part of your CTC or cost-to-company. This amouont is ideally aimed towards providing a financial cushion after retirement. The montly deposits from the employer towards his/her EPF and the employer’s contribution earns interest for the former. Worth mentioning that an employer has to contribute 12 per cent of basic wages and dearness allowance; an equal contrubtion also comes in from the employees’ pockets. Having said that, there are many who wonder how they can withdraw thier EPF at the event of an emergency.
The EPF Act says that for claiming final PF settlement, an employee has to first retire from service at 55 years of age or before. However, there is a window to partially withdraw the EPF amount as well, but only for those who over 54; they can withdraw up to 90 per cent of the balance along with the interest accured.
But not everyone works till the age of 54 or above right? For those peoplewho have retired earlier than 54 years or less, there is a provision to withdraw the amount after staying unemployed for two straight months or 60 days. However, just being unemployed for two months does not cut the cake; you need to get all relevant documents certified by a Gazetted Officer.
In fact, even when you are leaving one company and joining another, there is a way to withdraw the full amount. It may be noted that people can also withdraw up to 50 per cent of their EPF in case of a marriage in the family, preferably for the marriage of a child, brother or sister.
Below are the events in which EPF balance can be withdrawn before retirement:
It can also be withdrawn up to 50 per cent for the purpose of a child’s education. However, for all of these facilities you need to be employed for at least seven years. You can withdraw up to 90 per cent of the amount after 10 years. Meanwhile, you can find out your PF balance online using the EPFO portal, by sending an SMS, by giving a missed call.
What do you need for early EPF withdrawal?
For withdrawing EPF, you need to ensure that their Universal Account Number or UAN is active and their mobile is connected to the PF account. Worth mentioning that the member's Aadhaar card details should ideally be linked with the PF account. Other than that, the EPF member's bank account details and the bank's IFSC code also has to be integrated.