Employees Provident Fund is also known as a long-term investment tool, created with contributions from employees, employers, and in some cases the government. Simply, PF is a social safety program run by the Employee Provident Fund Organization (EPFO). When employees retire, they use it as a means of financial deposit. Along with the specified interest, the amount deposited in the PF account for years is paid to the employee on his retirement.
When can you withdraw money from EPFO?
The entire amount can be withdrawn from EPFO on the following conditions:
>> At the time of retirement (at or after the age of 58 years).
>> If you are unemployed for 2 months.
>> By the nominated person in case of the death of an employee before retirement age.
However, amid the coronavirus epidemic, the EPFO has also revised many withdrawal rules for people facing financial difficulties. The new rules also say that PF account holders will be able to withdraw money equal to three months of their basic salary and dearness allowance or 75 percent of the net balance in their PF account, whichever is lower. A significant change is also being made to allow a person facing unemployment before retirement due to lockdown or layoffs to withdraw PF funds.
Procedure for withdrawal of PF money:
>> EPFO members will have to log in to http://unifiedportal-mem.epfindia.gov.in.
>> Under the services tab, select the For Employees option.
>> Click on the Member UAN/Online Service (OCS/OTCP) option on the new webpage.
>> Log in to the portal using UAN, password, and captcha code.
>> Select the KYC option under the Manage tab.
>> You will move to a new webpage. Find the Digitally Approved KYC section at the bottom of the page and check your KYC details. Make sure the details are correct.
>> To complete withdrawal, go to the top menu and select Online Service.
>> Click the CLAIM (FORM-31, 19 & 10C) option from the dropdown menu.