The Employees Provident Fund is the prime scheme introduced under the Employees Provident Funds and Miscellaneous Act, 1952. The scheme offers provident funds for factory and organization establishments across the country. Under this scheme, employee and the employer both contribute a 12% of the basic salary and dearness allowance of the employee towards the fund. The fund can be withdrawn for any expenses or medical expenditure.
A part of the salary of a private employee is deducted each month under the Employee provident Fund in the EPF account. This EPF is mostly meet post-retirement needs though a person can withdraw the amount before that.
Conditions of withdrawing funds from EPF account:
The amount which can be withdrawn from an EPF depends on the status of the account. If a person wants to withdraw money from the PF account because of a wedding, he/she can withdraw only 50% of the amount. It is a crucial point to mention here that to withdraw an amount; the employee must have completed seven years of service. A person can also withdraw 50% of the contribution from EPF account with a higher interest for the higher education of the employee’s children.
In case of wanting to purchase a house or land, the employee must have completed 5 years of work. An employee can withdraw up to 24 times the monthly salary for purchasing land and up to 36 times the monthly salary for purchasing a house.
In case of medical emergency, if a person needs money for treatment or medical emergency, the person can withdraw 6 times the salary or the full amount of the PF. It is to mention here that the employee would need a proof of hospitalisation and a leave certificate for a month or more.
The Employees Provident Fund Organization last year allowed its employees to withdraw around 75% of the Provident Fund in they were unemployed for a month or more. The remaining 25% would be deposited in the EPF and can be withdrawn after two months of leaving the job.
Process of withdrawing money from the EPF:
- Enter the UAN number, password and the captha in the page.
- Click on ‘Manage’ and check the KYC.
- Proceed to ‘Online Services’ and click on Claim (Form- 31, 19 and 10C)
- One can see options for withdrawing full money or partial money amount for loans and advances.
- After clicking, fill the claim form and submit it online.
- The amount will be credited in the registered account number within 10 days from the date of claim.