Avoid EPF withdrawals, but follow these steps if you need to

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Funds accumulated in your EPF account should not be withdrawn frivolously. Unfortunately, vicissitudes of life sometimes forces one to tap into the reserve meant for use after retirement from professional life. Should some unplanned expenditure force you in dire need of funds and you have to dip into the coffers, here is a guide for you.

But before the steps, the arithmetic.

Withdrawal maths

Suppose your last drawn basic salary plus dearness allowance (DA) per month is Rs 40,000 and the balance in your account is Rs 4 lakh. The maximum amount you would be eligible to withdraw will be guided by any one of the following formula, whichever is lower:

a) Three months basic + DA, i.e., Rs 1,20,000 (Rs 40,000 X 3), or

b) 75% of the EPF balance, i.e., Rs 3,00,000 (75 per cent of Rs 4 lakh)

In this case you are eligible to withdraw a maximum of Rs 1,20,000 from your EPF account.

If you withdraw the amount for COVID-19 treatment, it would be ‘non-refundable’ and you won’t have to refund the withdrawn amount back into your EPF account.

But if you want to withdraw it for some purpose other than COVID-19, you have to put the money back into your EPF account.

Eligibility

To apply for withdrawing money online, an EPF account holder should fulfil the following conditions:

a) Universal Account Number (UAN) of the EPF member must be activated

b) Aadhaar number should be verified and linked with UAN

c) Bank account of the EPF member with related IFSC should be linked with UAN.

According to the Employees’ Provident Fund Organisation (EPFO), no certificate or document need to be submitted for this purpose. However, an individual must keep a scanned copy of a ‘cancelled’ cheque ready since it might be needed for account details.

Applying through the EPFO website

Step 1: Visit the Member e-Seva portal: https://unifiedportal-mem.epfindia.gov.in/memberinterface/

Step 2: Login to your account by entering your UAN, password and captcha code.

Step 3: Go to Online services and select claim (Form -31, 19,10C and 10D)

Step 4: A new webpage will appear on your screen with all your details such as name, date of birth, and last four digits of your Aadhaar number. The webpage will ask you to enter your bank account number. Enter your bank account number in the required space and click on verify.

A pop-up will appear on your screen asking you to give a ‘Certificate of undertaking’.

Step 5: Once the bank account number is verified, then click on ‘Proceed for online claim’.

Step 6: From the dropdown menu, you will be required to select ‘PF advance (Form 31)’.

Step 7: You will be required to select purpose of withdrawal as ‘Outbreak of pandemic (COVID-19)’ from the dropdown menu or any other option what you are planning.

Step 8: Enter the amount required and upload the scanned copy of cheque and enter your address.

Step 9: A one-time password (OTP) will be sent on your mobile number registered with your Aadhaar.

Step 10: Enter the OTP received by you via SMS and proceed.

Once the OTP is successfully submitted, the claim request will also be submitted. The money will be credited to your bank account only if the details match and your claim is accepted by the EPFO.

Applying via EPFO’s UMANG app

Step 1: Login to UMANG App

Step 2: Select EPFO

Step 3: Select ‘Employee Centric Services’

Step 4: Select the option ‘Raise Claim’

Step 5: Enter your UAN details and click on ‘Get OTP’ to get one-time password to login in your account.

Step 6: Enter the OTP and click on login. Once you are successfully logged in to your account, enter last four digits of your bank account and select the member ID from the dropdown menu. Click on ‘Proceed for claim’.

Step 7: You will be required to enter your address. Click on ‘Next’ once the correct details are entered.

Step 8: Upload the cheque image. Once all the details and required information is entered, then your claim will be filed.

Checking status of the claim

To check the status of the claim you filed, you can log in to your account on the Member e-Sewa portal.

You can check the status by clicking on ‘Track Claim Status’ under the ‘online services’ tab.

This will track as well as through UMANG app by clicking ‘Track Claim Status’.

Usually, it takes a maximum of 10-12 days to credit the amount into your account.

Things to remember

While applying for withdrawal from EPFO account, check whether your organisation is exempted. If your organisation is exempted, then you will have to contact your employer for the withdrawal.

Exempted organisations are those that have private trusts to manage the EPF of employees.

Your EPF account is a type of forced saving, withdrawing from your EPF corpus should be your last resort. So, consider and exhaust all other options before withdrawing from your EPF account.