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How to Withdraw Money from EPF: A Step-by-Step Guide for Salaried Employees

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How to Withdraw Money from EPF: A Step-by-Step Guide for Salaried Employees

How to Withdraw Money from EPF: A Step-by-Step Guide for Salaried Employees

How to Withdraw Money from EPF: A Step-by-Step Guide for Salaried Employees. If you are a salaried employee wondering how to withdraw money from EPF, this step-by-step guide will provide you with all the necessary information.

Introduction:

The Employees’ Provident Fund (EPF) is a retirement savings scheme established by the Indian government for salaried employees.

It is a mandatory contribution scheme that requires both the employee and the employer to contribute to the fund.

The employee contributes 12% of their basic salary and dearness allowance, while the employer contributes an equal amount.

One of the main benefits of the EPF scheme is that it allows salaried employees to withdraw a portion of their savings before retirement for certain reasons, such as marriage, medical expenses, or house purchase.

If you are a salaried employee wondering how to withdraw money from EPF, this step-by-step guide will provide you with all the necessary information.

Types of EPF Withdrawal:

There are two types of EPF withdrawals: partial withdrawal and full withdrawal.

Partial Withdrawal: Partial withdrawal allows salaried employees to withdraw a portion of their EPF savings before retirement. The reasons for partial withdrawal include:

  • Medical Treatment: For the employee, spouse, children, or parents.
  • Marriage: For the employee, children, or siblings.
  • Education: For the employee or children.
  • House Purchase or Construction: For the purchase or construction of a house or flat.
  • Home Loan Repayment: For the repayment of a home loan taken by the employee or spouse.

Full Withdrawal: Full withdrawal allows salaried employees to withdraw their entire EPF savings after retirement, resignation, or termination from the job.

Eligibility for EPF Withdrawal:

To be eligible for EPF withdrawal, salaried employees must meet certain criteria. The eligibility criteria for partial withdrawal and full withdrawal are different.

Partial Withdrawal: To be eligible for partial withdrawal, salaried employees must meet the following criteria:

  • The employee must have completed at least 5 years of service.
  • The reason for withdrawal must be valid.
  • The amount of withdrawal must not exceed a certain limit, depending on the reason for withdrawal.

Full Withdrawal: To be eligible for full withdrawal, salaried employees must meet the following criteria:

  • The employee must have completed at least 58 years of age.
  • The employee must have retired from the job.
  • The employee must have been unemployed for at least 2 months.

Documents Required for EPF Withdrawal:

To withdraw money from EPF, salaried employees must submit certain documents, depending on the reason for withdrawal. The documents required for partial withdrawal and full withdrawal are different.

Partial Withdrawal: The documents required for partial withdrawal include:

  • EPF Withdrawal Form
  • ID proof, such as Aadhaar Card, PAN Card, or Voter ID Card
  • Bank account details
  • Proof of the reason for withdrawal, such as medical bills, marriage certificate, or house purchase agreement

Full Withdrawal: The documents required for full withdrawal include:

  • EPF Withdrawal Form
  • ID proof, such as Aadhaar Card, PAN Card, or Voter ID Card
  • Bank account details
  • Form 15G or Form 15H, if the withdrawal amount exceeds a certain limit
  • Proof of retirement, such as a retirement certificate

Steps for Online EPF Withdrawal:

The process of online EPF withdrawal is simple and convenient. Here are the steps to follow:

  1. Log in to the EPFO website: The first step is to log in to the official website of the Employees’ Provident Fund Organization (EPFO) using your Universal Account Number (UAN) and password.
  2. Check eligibility: Check your eligibility for withdrawal and select the reason for withdrawal.
  3. Fill out the withdrawal form: Fill out the online withdrawal form with the required details, such as bank account details, reason for withdrawal, and amount of withdrawal.
  4. Upload documents: Upload the necessary documents, such as ID proof, bank account details, and proof of reason for withdrawal.
  5. Submit the application: After filling out the form and uploading the necessary documents, submit the application online.
  6. Wait for approval: Once you have submitted the application, it will be reviewed by the EPFO. You can track the status of your application online.
  7. Receive the amount: After your application is approved, the amount will be transferred to your bank account within a few days.

Frequently Asked Questions:

1. Can I withdraw my EPF balance while still working?

A. No, you cannot withdraw your EPF balance while still working. You can only withdraw a portion of your savings before retirement for certain reasons, as mentioned above.

2. What is the maximum limit for partial withdrawal?

A. The maximum limit for partial withdrawal depends on the reason for withdrawal. For example, for house purchase or construction, the maximum limit is 90% of the total balance, while for medical treatment, the maximum limit is 6 times the monthly salary.

3. Can I withdraw my EPF balance after resigning from my job?

A. Yes, you can withdraw your EPF balance after resigning from your job. However, you must have been unemployed for at least 2 months to be eligible for full withdrawal.

Conclusion:

In conclusion, withdrawing money from EPF can be a complicated process, but with the right information and guidance, it can be done easily.

This step-by-step guide has provided all the necessary information on how to withdraw money from EPF, including the types of withdrawal, eligibility criteria, documents required, steps for online withdrawal, and frequently asked questions.

By following this guide, salaried employees can easily withdraw their EPF savings for valid reasons, such as medical treatment, marriage, or house purchase.