Regular jobs mean a regular salary. When it stops, you’re exempted from any professional duty and awarded with a lump sum of amount, which is your months’ savings. Almost everyone is anxious to know how to. Isn’t it? So, in this article, we’ll know the procedure of EPF withdrawal before retirement.
EPF Withdrawal Before Retirement
As per the EPFO, you’re free to extract the entire amount after getting retirement from your job. The average retirement age is 58 years. After getting expired from your job, you can avail of lump-sum amounts at a time. You can get your PF, EPF, pension funds. However, everything depends on the total number of years you rendered service.
However, there are situations when people accept retirement before that. Depending on your age, the permission of withdrawal gets granted. That is, if you’re less than 58 and are unemployed, there lies a different rule. If you didn’t get another for a month of leaving the last job, you could apply for 75% withdrawal of your entire fund. Added to that, if for another month the joblessness continues, you’ll get the rest 25%.
Apart from everything, if you’re getting the job within this last one month, your EPF 25% can get refunded into your account. In this way, you can get enough of your savings in your EPF fund for your future. You can then even shift this EPF account to your new organization.
On a serious note, make sure you shift your last EPF account to the new organization within a month of joining. If you fail to do so, you’ll have to bear severe consequences during retirement withdrawal at the age of 58.
Apart from that, there are other causes for which you might become urged to withdraw EPF before retirement. Let’s have a look at it.
Situations Under Which You Can Opt For EPF Withdrawal Before Retirement
There can be many reasons like-
a. Medical issues.
b. To meet the financial requirements to support your LIC policy.
c. To give a financial hand to the home loan payment.
d. To buy or build a house.
e. To meet the marriage expenses.
f. It is exclusively applicable for the ladies to leave a job for marriage, pregnancy, etc.
g. If you’re getting shifted to some other country.
Pre-Requirements Of The EPF Extraction
Make sure you meet these requirements to get your withdrawal successful-
ii. You must have tied-up your UAN number with your phone number, Aadhar number.
iii. You must provide your PAN card information in your UAN portal.
What Constitutes The Total EPF Fund?
The EPF collection is made up of-
- Your contributions.
- The interest in your contributions.
- Your boss’s contributions.
- The interest added to your boss’s contributions.
It also takes into account the defaults in your regular contributions, if any. Apart from that, if you’ve withdrawn from your EPF account earlier for any emergency cause, it decreases the total amount. However, if you never faced any such emergency case, then you’re lucky enough to grab the entire amount at a time.
Apart from that, the pension that you’ll receive also depends on your last salary. That is, the last month’s wage before you got your retirement. There are many instances when people get promoted during the last few months of their retirement. These are a few of the lucky geniuses. Isn’t it? They’ll suddenly get more wage and simultaneously more pension as well.
Yet, it’s advisable that before you receive your lump sum EPF amount, you must integrate all your past EPF accounts, if any. That is the EPF account from your last organization into the new. As I’ve already said, if you fail to, you might face serious consequences.
The Procedure Of EPF Withdrawal Before Retirement
There are various measures of EPF withdrawal. However, the major factor that depends on is the tying-up of your Aadhar card with your UAN number. That is, if you’ve tied-up beforehand, you can easily carry out the procedures sitting at your home online. However, if, unfortunately, you haven’t, then you’ve to rush to the EPFO office to make the offline procedures.
Thus, it’s always a smart job to tie-up your Aadhar card with your UAN number beforehand. The online method is always more accessible than the offline method. So, it’s advisable to prefer the online method than offline.
Let’s first have a look at how to go through the process if your Aadhar number is tied-up with your UAN number.
1. If Your Aadhar Number Is Tied-Up With Your UAN Number-
a. If your Aadhar number is tied-up with your UAN number, you don’t have much to do then. You have to visit the Member e-Sewa portal site.
b. There you’ve to log in as always by entering your authentic UAN number and password.
c. Then go the option ‘Online Services’.
d. Next, tap on the box showing ‘Claim.’
e. There you’ve to fill the form-11. Your Aadhar number, bank information, etc. must be already available—the rest information you’ve to provide.
f. Take a print and before going directly to the EPFO office, submit a copy to your boss.
g. Finally, handover it to the concerned EPFO officer.
2. If Your Aadhar Number Is Not Tied-Up With Your UAN Number-
a. If your Aadhar number is not tied-up with your UAN number, you’ve to carry out things offline. That is, you need to rush to the EPFO office, fill the physical form. Apart from that, you’ve to attach some documents which are not necessary for the online method.
b. The main thing that you need to attest is a blank cheque or a canceled one will work too.
c. Apart from that, if you’re eligible for 15G/H, you can attest it too.
d. If you have no UAN number, you can go with your PF account number only.
e. At last, if you’ve rendered less than 5 years, you need to attach a scanned copy of your PAN card. This would ensure a reduced tax imposition.
EPF Withdrawal In Various Circumstances
Depending on your service period, there arise four such circumstances-
a. Service Period Of Fewer Than 10 Years:
In such a scenario, you can get your total EPF fund. However, you need to submit a filled form-10C. Apart from that, if you’re unemployed for a month, then only you’re eligible to receive 75% of the total amount. After another month of joblessness, you’ll get the rest 25%.
b. Service Period Of More Than 10 Years:
Unfortunately, you won’t get to avail of the fund at this stage except for the scheme certificate. You’ve to wait to claim for a decreased pension instead till you attain the age of 50.
c. Service Period Of More Than 10 Years Within The Age Group 50-58:
In this situation, you can ask to claim for a decreased pension. However, for this, you must have rendered a service period of 10 years or more. Apart from that, you have to submit the form-10D. In addition to that, the composite form is also mandatory. It can be either Aadhar based or without. For both situations, the steps to proceed are already mentioned above.
d. After Retirement Benefits:
This is a normal event. Here, you have to submit the form-10D to avail of the benefits. There is not much more extrapolation about it.
Frequently Asked Questions
1. How much PF can be withdrawn before retirement?
Before a year of your factual retirement, you’re free to extract about 90% of your entire fund. It is the improvised form which earlier stuck at 2 years. That is, before 2 years of your retirement you were able to extract the amount. The rest 10 % you can get after attaining retirement.
However, this is quite optional for you to extract or not. It’s always better not to extract if there’s no such serious requirement.
2. How to merge two EPF accounts?
To merge two EPF accounts, go through the below-mentioned steps-
i. Go to the authentic EPFO site and log in by providing your credentials.
ii. Next, tap on the ‘Services’ option and select ‘1 employee-1 EPF account’.
iii. A new tab opens. Here you need to provide your ID, phone number, UAN number, etc. details.
iv. Then an OTP gets generated which you need to type without making an error. Make sure you’ve tied-up your phone number with your UAN number.
v. Then a page opens asking you the information regarding your last PF account. After you provide the requisite information, it gets accepted. Finally, the account will get merged.
3. Can I withdraw my PF without resigning?
Yes, you can extract from your EPF account in the times of urgency. Different situations are providing different amounts to meet the situation. However, for that, you need to have served a certain stipulated service period.
4. Can I withdraw full PF amount after resignation?
As I’ve already mentioned, you can withdraw your entire PF amount after two months of being jobless or accepting retirement. Apart from these, there are no other means for which you can extract your EPF amount.
5. Can I withdraw 100% PF amount?
Yes, certainly you’re eligible to get 100% of your PF amount. However, my assertion may change according to the circumstances. As I’ve said already, in case you’re jobless for a month or more, you can get 75%. The rest you can receive after another month of joblessness.
In another instance, you can receive 100% of the PF fund after 2 months of retiring from your job.
6. How to activate the UAN number?
Each subscriber of EPFO has a certain UAN number. However, some have an active UAN number and others don’t. You can check it in the slip of your basic wage. Yet, to activate it, follow the below-mentioned steps-
i. First, go to the authentic EPFO site. The direct link is https://unifiedportal-mem.epfindia.gov.in/memberinterface/
ii. Click on the option ‘Activate UAN’.
iii. A new tab opens asking you your information about your DOB, phone number, and other basic details.
iv. Then tap on the box ‘Submit’. Your UAN number gets activated.
7. What will happen if I don’t shift my previous EPF account to the new organization I got in?
As I’ve already mentioned above, you’ll face serious consequences. In case, you fail to merge or shift, you’ll have to bear tax impositions. That is, the amount in your last EPF fund will get tax levied. It is just like throwing a part of your hard-earned money into the water.
By now, you must be sure how to proceed with the steps to avail of retirement benefits. By this article, I hope I was able to reach to your doubts regarding EPF withdrawal before retirement.