The Employee's Provident Fund (EPF) is a retirement benefit scheme available for salaried employees. It is managed by the Employees' Provident Fund Organisation (EPFO). Both the employee and employer make an equal contribution to the scheme, and at retirement, the employee receives a lump sum amount including their contributions and interest. The contribution rate is 12 per cent of the employee's basic salary. Any registered company with more than 20 employees must register with the EPFO.
It is important to note that PF deduction becomes mandatory in a company where the number of employees drawing wages up to Rs 15,000 per month is 20 or more.
The EPF scheme is an excellent way to save for retirement, but the money can also be withdrawn in case of an emergency. Online withdrawal is available if the employee's Aadhaar is linked to their UAN. Previously, attestation by the employer was mandatory for withdrawal, but this is no longer necessary.
Partial withdrawal is allowed up to 75 per cent in certain situations, such as a medical emergency or higher education expenses for children. Withdrawals are subject to conditions, and employees must ensure that their requests meet these conditions before applying.
To withdraw money from the EPF, employees must check if their Universal Account Number (UAN) is activated and if their Aadhaar and bank account are linked. They must log into the EPFO's e-sewa portal using their UAN and password and fill out the online form "Claim (Form-31, 19, 10C & 10D)" found in the online services menu. After entering their bank account number, they must agree to the "Certificate of Undertaking" or the terms and conditions of the transaction.
The next step involves answering a few questions and submitting scanned documents to substantiate their purpose for withdrawal, if it is premature. After entering the required amount, employees will receive an OTP on their Aadhaar registered mobile number, which they must authenticate to submit their request. They can check the status of their claim on the portal, and it generally takes two to three weeks for the request to be approved and the money transferred to their bank account.
Premature withdrawal under EPF is subject to various conditions, and employees must meet them to receive a partial refund. In case of any financial emergency, EPF acts as a safety net and can be very much relied upon.
Read More: Bank Holidays for Holi 2023 week: List of states with closed banks for three consecutive days
