What is a Provident Fund?
A Provident Fund is a retirement savings program where both employees and employers contribute a portion of the employee’s monthly salary. The fund is managed by a professional who invests this money, helping it grow over time. When the employee retires, they receive a payout that includes the money they saved plus any earnings from the investments.
This fund is jointly set up by the employer and employees who choose to contribute. It offers financial support if an employee retires, leaves the job, becomes ill, or passes away. Provident Fund rules are managed by the government under the Provident Fund Act, ensuring employees’ rights.
Think of it as a retirement savings system. Employees deposit 2-15% of their salary, and the employer matches this contribution at the same or sometimes a higher rate. Once the employee retires, they can withdraw their full savings, along with any investment profits. However, there is a small risk of losing part of the investment.
The amount an employee receives may also depend on how many years they have worked with the company by the time they retire.
How to withdraw PF amount online?
As we know, the Employee Provident Fund (PF) Organization (EPFO) has made it easier to access your PF amount online by using digital technology. Thanks to these improvements, it’s now simpler and faster to check or withdraw your PF online, making it more convenient for employees and employers in India and worldwide.
However, many people still don’t know how to access their PF online, and some find it difficult because they lack the necessary information. This guide will walk you through the simple steps to withdraw your PF amount online:
1. Check Your Eligibility
Before you start, it’s important to verify if you’re eligible to withdraw your PF. This step ensures safety and confirms your identity. Make sure you meet the requirements set by EPFO. Generally, you must have worked with an organization for at least five continuous years to qualify. However, there are exceptions in specific cases, such as for medical emergencies or unemployment.
Activate your Universal Account Number (UAN)
A Universal Account Number (UAN) is a unique ID given to each employee in the country who contributes to the Employee Provident Fund (EPF). If you haven’t activated your UAN yet, you’ll need to do so to withdraw your PF.
Activating your UAN is easy. Just go to the EPFO website and follow the simple steps provided. The process is straightforward and beginner-friendly, so anyone can complete it without any trouble.
Linking UAN to Aadhaar
To be eligible for PF withdrawals, you need to link your UAN with your Aadhaar. This step is important as it helps make the withdrawal process smooth, easy, and secure, while also verifying your identity.
Bank Account Details and KYC
Your UAN should be up-to-date, with all bank account details and KYC documents verified. This is necessary for employers to ensure online withdrawals are processed correctly and securely.
Enter the EPFO Portal login information
How to Log in to the EPFO Portal
Start by visiting the EPFO member portal at https://unifiedportal-mem.epfindia.gov.in/memberinterface/. Use your UAN and password to log in—this step is required to access your PF details.
Access the Claim Feature
Once logged in, navigate to “Online Services.” From here, select “Claim (Form-31, 19 & 10C)” on the homepage to begin the PF withdrawal process.
Verify Your Details Carefully
Check that all personal information shown matches your UAN. Any mismatched information can cause delays, so make sure everything is accurate.
Select the Type of PF Withdrawal
Choose the option that best suits your needs:
- PF Advance (Form 31): Allows a partial or full PF withdrawal for situations like medical costs, living expenses, housing needs, education, or weddings.
- Final PF Settlement (Form 19): Choose this option to withdraw the total PF balance upon retirement or if you leave your job.
- Pension Withdrawal Benefit (Form 10C): This is for withdrawing pension funds if you are exiting the scheme.
Fill in the Necessary Information
Complete all fields accurately according to the type of withdrawal. Entering correct information helps ensure your withdrawal is processed quickly and without issues.
