Introduction to Provident Fund
The Provident Fund is one that benefits a salaried individual at his retirement. After an employed person is released from his regular job or services at the time of retirement, he is without income. That is when the Provident Fund will be beneficial to the retired individual. This is almost like a savings plan that a person can take advantage of at the time of leaving their job. The person who would like to withdraw their PF can do so before retirement too. However it is best if it is left in the EPFO unless there is a dire financial necessity.
Introduction to EPFO, Salary Deduction
The EPFO is an organization that handles the issues related to the Provident Fund. The expanded form of EPFO is Employee Provident Fund Organization. The companies with more than twenty employees or over compulsorily have to register with the Employee Provident Fund Organization. A percentage of an employee’s salary is diverted and added into the EPF account every month. Out of 12% deduction of employee’s basic salary 3.67% goes to EPF and 8.67% to EPS. The annual interest rate is added to this amount. This is decided by the Government/ Trustees Board and the updated rate of interest is given on the EPF India web portal.
Opt Out of Provident Fund
While we understand that new professionals or fresher’s drawing first salary will be confused on the vanished chunk of money, it is a great retirement benefit fund/scheme. There are a few people who like to opt out of the contribution towards PF. This can be done only at one time. You have to inform your very first employer that you would like to opt out. They will make the necessary changes. However once your PF account is opened you cannot opt out of this PF scheme. Again, it makes a great after retirement fund.
EPF Withdrawal upon Leaving Job
When you leave your present job, you will be thinking what to do with the contributions of your salary to PF. There are two options available. You can get your PF amount transferred to your new employer after drawing your first month’s salary. However the other option is to withdraw your PF amount. You can do so after two months of leaving your job. You cannot withdraw your PF while you are employed. This could be your present or new employer. Let me make it simpler for you. If you have not drawn your wages for two months period of time after leaving employment you can apply for your PF. However there are some conditions wherein you can withdraw it immediately. These are very few conditions. So this topic will be covered in another article. For now let us read on to know how to withdraw PF after leaving job.
Withdrawal of PF before Retirement
If you are an ex-employee of a company and you would like to withdraw your provident fund amount, you can. Some people feel that this is a very long and hectic procedure. Now with the addition of the UAN it is quite a simple process. We will help you out in this article if you would like to get help on withdrawing your Provident Fund. There is a partial withdrawal and there is a complete withdrawal of PF amount. People can do it at the time of retirement. People can also withdraw their PF before their retirement in case in some conditions.
Documents Required to Claim PF
- Universal Account Number – There is an exception to quote your UAN if you left your job/employment before January 1, 2014.
- ID Proof – Your Name, DOB, and Father’s Name must match with your proof of Identity.
- Bank Account you provide to credit the PF Amount must bear your name on provided ID Proof (This means your name on the ID Proof and your Bank Account must be the same)
- Employer should mandatorily register your date of leaving employment in the EPFO Records. (This is Mandatory)
In case you have all these documents ready then you are almost done with the process of withdrawing your provident fund amount. However still there are a few conditions under which you can claim for your PF amount. It is mentioned above in the earlier paragraph. The introduction of the UAN has changed the process of the PF Withdrawal completely. Prior to this it was a tough procedure. Now by quoting the UAN it is even possible to do most of the process online itself.
Also Read: Download UAN Passbook from EPF Unified Portal
There are two methods of withdrawing your Provident Fund amount. One is by using the new Form which is only of 1 Page length and not many details to fill in. This one is far better than the traditional form filling where the PF applicant has to fill the entire booklet. The steps are as below:-
1 – Link your Aadhaar Number with your Universal Account Number
2 – Your Employer has to authenticate your Aadhaar Number Link up
3 – Download the new EPF Withdrawal Form which is available online.
4 – Complete the necessary details and check for filling errors.
5 – Take this filled in form and take this to the Local / Regional Provident Fund Office.
6 – Take along the documents required and mentioned earlier in the Documents Checklist.
What you read above is the process of PF withdrawal with the new form available online for download. Now we will go over the process of withdrawing the PF amount with the old form. The employer will provide you with a Form – 19 to fill in. (This form is also available for download online)
These are a few mandatory details that you have to keep ready before checking for a PF Withdrawal. First check with your employer beforehand if you do not have the details to keep them ready.
- PF Account Number
- Employee ID / Number
- Date of Joining
- Date of Leaving
- Bank Account
- IFSC code
- Cancelled Cheque with Same Bank Account
Take your filled in Form – 19 with the Form 10C to your Ex-Employer HR Department. There would be a special team/ person to handle PF issues. They would forward your documents and filled up forms and process the necessary steps. This takes 45 days to 60 days/2 months time. This may require you to make more than one trip to your previous / last employer. You can also take the help of a registered PF Agent to help you out if you do not like the process.
Related posts:
- New Rules To Withdraw EPF Without Employer Signature
- Tax on EPF Withdrawal, New TDS Rule Flowchart
- Make EPF Withdrawal Super Easy Without Employer signature
- Get Universal Account Number UAN Of EPF Online
- How to withdraw PF without leaving a job?
FAQs
Employee Provident Fund (EPF) is a retirement corpus from which an employee can make withdrawals if he/she has been unemployed for more than 2 months. Currently, the EPFO allows 75% PF withdrawal if it is carried out after just 1 month of unemployment.
Do we get the provident fund if I resign? ›
PF Funds Following Resignation
When a person retires from work and is out of work for more than two months, they can withdraw their whole Provident Fund (PF). For the individual to get PF funds, the gazette officer must certify that he or she has been unemployed for more than two months.
How can I withdraw my PF online after leaving job? ›
To withdraw your PF amount using the EPFO portal, you will need to ensure the following: UAN. Aadhar number must be linked and verified with UAN. The bank account where you want to receive the amount must be the same as the bank account registered with your Aadhaar.
What is the rule to withdraw PF amount? ›
Reasons For Filing PF Withdrawal
A withdrawal claim can be made on half-yearly/yearly/ two to 3 years of the insured basic wages and dearness allowance; total share of the interest; on the amount deposited by employee and employer; or claim in percentage of the amount from 50% and 90% of employee share with interest.
Do we get double PF after leaving job? ›
With the rising cases of Omicron variant of coronavirus, EPFO has continued offering the withdraw of non-refundable advance two times for the subscribers. This means that in cases of Covid-19 emergencies, EPFO subscribers can easily withdraw advances from their PF accounts twice.
How do I claim my provident fund? ›
To claim your benefit, you must have resigned or retired from your employer. You must then complete a withdrawal notification form, and submit this, with required supporting documentation, to your HR department.
Can we withdraw full PF amount after leaving job Quora? ›
Yes, you can. Just fill up PF and EPS withdrawal form and send it to your previous employer for sign and stamp. After that you or your employer can submit the same to RPFO (regional PF office). The request will be reviewed by then and the amount will be credited to your account.
Is Form 10C mandatory for PF withdrawal? ›
When an individual retires from a company, they can either carry forward their EPF to their next company or withdraw the same. However, in case of withdrawal, that person needs to file EPF Form 10C.
What are the documents required to withdraw PF? ›
Documents Required for EPF Withdrawal Online
EPFO stipulates that individuals should possess vital documents before applying online for EPF withdrawal. Employees should arrange 2 revenue stamps, a valid bank account statement, Aadhaar Card, PAN Card, Voter ID Card and a cancelled blank cheque.
How can I withdraw my PF from previous employer? ›
When changing employers, a member must always get the PF account transferred from the previous employer to the current employer by submitting Form 13(R). Alternatively, the member can also request for a transfer online by logging into the EPFO portal with a valid UAN and password.
EPF Form 19 can be filled using both the online and offline modes. Upon final submission of the EPF Form 19, the member will receive his/her withdrawal amount within 15-20 days.
What is the best time to withdraw PF? ›
Who can Withdraw EPF- Eligibility Conditions
- The total corpus accumulated in the EPF account can be withdrawn only upon retirement of the employee (Note that early retirement is also possible only after 55 years of age and not before that)
- Employees can withdraw 90% of their EPF corpus before 1 year of their retirement.
If you resigned mid-month, the fund would only receive your last contribution around month end, so the dealt is not as long as you imagine. Assuming your tax affairs are in order, a pay-out usually takes around 4-8 weeks from that point.
What happens to my provident fund when I get fired? ›
The money in your provident fund, as reflected on your latest benefit statement, belongs to you (even if your employer made all the contributions). It does not matter whether you are resigning, or you are retrenched or dismissed, this money is yours, and you can cash it in or transfer it to another fund.
Can I withdraw my pension fund when I resign? ›
According to the Employee Provident Fund Act of 1952, any person who retires after completing 58 years of work is eligible to withdraw the full PF amount and claim the Employee Pension Scheme amount.
Who is eligible for 10C? ›
Eligibility to apply for Form 10C
An individual who has completed 10 years of service, but have not attained 50 years of age, or a member who is between 50-58 years of age and is not willing to settle with a reduced pension.
Can I claim both form 19 and 10C? ›
Withdrawing EPF Funds Offline—Composite Claim Form
The composite claim form is a combination of Form 19, Form 31, Form 10C, and Form 10D. You have to fill Form 19 for final settlement, Form 31 for partial EPF withdrawal, Form 10C for pension withdrawal, and Form 10D for withdrawal of monthly pension.
Why form 10C is required? ›
Form 10C is filled and submitted when you want to claim benefit under the Employee Pension Scheme (EPS). In simple terms, at the time of employment, the employee has a pension fund which he keeps secured with the government for his retirement.
How do I write a withdrawal letter? ›
How to write a letter of withdrawal
- Notify the employer right away. ...
- Be honest and clear. ...
- Thank the employer for their time. ...
- Provide your contact information. ...
- Keep your options open.
Email Withdrawing Application for Employment
After careful consideration, I would like to withdraw my application for the job. I sincerely appreciate you taking the time to interview me and to share information on the opportunity and your company. Again, thank you for your consideration and the time you shared.
Respected, I resigned from my post on __/__/____ (Date) and as per your _______ (company/ school/ institute) I am entitled to withdraw the PF. As I am already eligible to withdraw the collected PF. Therefore, I request you to kindly guide me through the procedure for withdrawal of PF.
Can I withdraw my PF after 5 years of leaving company? ›
You can claim both PF and EPS amount if you haven't completed 10 years of service. You will just have to fill the Composite Claim Form and choose both the options 'Final PF balance' as well as 'pension withdrawal'. If you are planning to work again you can submit the Form 10C and get the 'scheme certificate'.
How many days will it take for PF final settlement? ›
Normally it takes 20 days to settle a claim or release the PF amount, if the same is submitted to concerned EPFO Office in complete.
How can I withdraw my EPF money from previous employer? ›
EPF withdrawal can be done through the UAN member portal. The member has to first activate his UAN and then log in to the portal for online withdrawal. The portal can also be used to transfer funds from his old PF account to a new account. Other online services such as eKYC, contact details update, etc.
Is Form 10C mandatory for PF withdrawal? ›
When an individual retires from a company, they can either carry forward their EPF to their next company or withdraw the same. However, in case of withdrawal, that person needs to file EPF Form 10C.
What are the documents required to withdraw PF? ›
Documents Required for PF Withdrawal Form
- Form 19.
- Form 10C and Form 10D.
- Form 31.
- Two revenue stamps.
- Bank account statement.
- Identity proof.
- Address proof.
- A blank and cancelled cheque (IFSC code and account number should be visible).
The EPF corpus can be withdrawn by the employee only in case of any emergencies, under certain conditions. Otherwise, employees can go for the final settlement of their EPF corpus upon leaving his/her job. To do so, the employee must fill PF Form 19 to withdraw funds from his/her EPF account for the final settlement.
How can I check my PF withdrawal status? ›
Employees can check their EPF withdrawal/transfer claim status by calling on the EPFO 24×7 customer care number – 1800 118 005. Employees need to keep their PF Account Number or UAN handy as the helpline officer will ask for it for checking the status of the claims.
Can I hide my previous employer? ›
You should disclose your previous employment as material suppression of fact can lead to strict disciplinary action against you. Not giving of UAN number is not going to be of any help in your case.
Can I withdraw my pension fund when I resign? ›
According to the Employee Provident Fund Act of 1952, any person who retires after completing 58 years of work is eligible to withdraw the full PF amount and claim the Employee Pension Scheme amount.
Therefore, if the period of employment in the previous organisation is less than 5 years and you do not transfer the account to the new employer, then the amount received from the previous employer including the interest earned will become taxable on withdrawal.
