EPF, or Employee Provident Fund, is a government scheme managed by Employee Provident Fund Organization. The employer and employee contributions from the fixed monthly salary to EPF are exempted from income tax on the withdrawal. The EPF withdrawl is possible after retirement or in emergency situations by the employee. The employees also get the option to perform EPFO balance check through various options.
What are the Documents Required for EPF Withdrawl?
The necessary documents for EPF withdrawl are:
- Universal Account Number (UAN)
- Bank account information
- Validate the name of the bank account holder for a hassle-free transaction
- Accurate joining and leaving data from the company
- Personal information, including identity proof, father’s name and date of birth
Employees can also perform an EPFO balance check before withdrawal for efficient planning and accurate expectations about the amount they will receive.
What are the Eligibility Criteria for EPF Withdrawl?
The employees are legally eligible to withdraw the EPF amount after retirement. Besides, they are also allowed to perform premature withdrawal on account of the following situations or occasions:
Unemployed
Employees can perform EPF withdrawl up to 75% after being unemployed for a month. During the unemployment post-stated period, they are further eligible to withdraw the remaining amount. The EPFO balance check allows accurate information to plan expenditures and savings accordingly.
Marriage
The employees can debit 50% of EPF on the occasion of one’s own, siblings’ or children’s marriage. The condition is at least seven years of contribution to the provident fund. The EPFO balance check through SMS or missed call allows checking the balance without UAN.
Medical Emergency
The urgent medical treatments for a fixed number of diseases for oneself or immediate relative allows EPF withdrawl. The withdrawal amount is limited to the employee’s share or basic wage and dearness allowance of six months or the lower amount among the two.
Education
Employees can perform 50% amount transactions on account of their own or children’s education after class 10. It also requires about seven years of provident fund investment.
Specially-abled Individuals
The specially-abled account holders hold the freedom for provident withdrawal for the equipment. The amount is limited to six months of basic salary and DA or employee’s share with interest or the lower amount.
Existing Debts
The wage clearance amount withdrawal limit is three years of basic salary combined with DA. Alternatively, the total employee and employer share with interest can be withdrawn for home loan EMIs. The condition for employees is ten years of provident fund contribution to be eligible for the same.
Purchase Property or Plots
The employees can withdraw the provident fund to purchase residential property or land plots. The planning can be done through regular EPFO balance check for reliable and accurate information through the EPFO app, portal, or UMANG app.
Facts about EPF Withdrawl
Before heading for withdrawal, here are some conditions necessary to be known. These are:
- Employees can withdraw the entire amount only after retirement or after taking early retirement, considered by EPFO at the age of 55.
- Parietal withdrawal is applicable for the above-stated purposes only.
- 90% provident fund is available for debit one year before retirement.
- Employees can withdraw amounts of their will by linking the Aadhar and UAN to the EPF account. It frees them from seeking permission from their employer.
- The EPF corpus is open for employees if they are laid off or lose their jobs due to retrenchment.
Conclusion
Provident funds are security amounts suitable for employees for retirement and other occasions. The employees can not completely withdraw their provident fund before retirement. However, a well-defined specific amount can be taken for particularly listed purposes or occasions. The EPFO balance check, through different ways, assists in taking appropriate decisions.