EPF subscribers can prematurely withdraw money from their corpus, also known as an advance, under specific circumstances
Your contribution to the Employees’ Provident Fund (EPF) probably began right away with your first salary. As you spend more years in employment, the EPF contribution from your salary coupled with your employer’s share reaches a substantial amount. The primary goal of the EPF scheme is to amass a lump sum amount for salaried individuals that can finance their retirement years.
EPF subscribers contribute 12 per cent of their basic pay plus dearness allowance to the EPF. The employer’s contribution, which is also 12 per cent of the employee’s basic and dearness allowance is split, wherein 3.67 per cent goes towards the EPF and 8.33 per cent to the Employees’ Pension Scheme (EPS). The present rate of interest on EPF deposits is 8.25 per cent per annum.
EPF subscribers can withdraw funds from their EPF prematurely, known as advance, under specific circumstances.
These are:
Unemployed for the past two months
Facing a lockout of closure of the company (employer)
For buying or building a home
In case of a medical emergency for subscriber or subscriber’s family members
For the wedding of the subscriber or subscriber’s son, daughter, brother, or sister
Emergency expenses or post-metric education needs
EPF withdrawals are allowed in case of events, such as natural disasters or for buying medical equipment in the event of a disability.
Other than these, the Employees’ Provident Fund Organisation (EPFO) allows for 90 per cent withdrawal (advance) after the age of 54 or one year before retirement.
Over the last few years, EPFO has introduced a range of changes given the changing circumstances and numerous medical exigencies that befall people.
Earlier this year, the EPFO increased the existing eligibility limit of auto claim settlements under Paragraph 68J from Rs 50,000 to Rs 1 lakh. Paragraph 68J allows for an EPF subscriber to apply for a partial withdrawal and/or advance for the medical expenses of self and family member.
The EPFO has streamlined the claim submission procedures with the introduction of the Universal Account Number (UAN) system. As an EFP contributor, make sure that your UAN has been activated before you file any claim for an advance or withdrawal.
If you have linked your UAN with Aadhaar number and bank account, you can easily submit claim forms directly to the EPFO without any need for employer attestation.
Here are the steps to claim your EPF advance online.
1] Log in to the EPFO portal using your UAN details. Make sure that your Know Your Customer (KYC) details and service eligibility information are up-to-date and complete.
2] Then, choose the type of claim you want to seek an advance for, namely, medical emergencies, house purchase, home loan repayment or wedding.
3] Next, you will need to verify your identity using the One-Time Password (OTP) received on your registered mobile number.
4] Fill in the details on the loading page for the online claim submission by following the prompts