Employees’ Provident Fund (PF) is an important retirement benefit that serves as a long-term savings instrument for an employee’s post-retirement existence. When a person leaves their work, they have the option of withdrawing their PF balance. This entire process has gotten simpler and now one can complete all the steps online. In this guide, we will discuss how to withdraw PF online after leaving job, the eligibility criteria and the documents required for it.
How to Withdraw PF Online After Leaving Job? Full Guide
How to Withdraw PF Online After Leaving Job? Full Guide
The Employees’ Provident Fund Organization (EPFO) has amended some of its withdrawal restrictions for the Provident Fund (PF) account in 2022. The goal of these changes is to make it easier for subscribers who are experiencing financial difficulties as a result of the coronavirus outbreak to access their PF money.
The new guidelines enable PF account holders to withdraw up to three months’ basic income + dearness allowance, or 75% of the net amount in their PF or EPF account, whichever is less.
This will be considered a non-refundable deposit. These withdrawal claims can be submitted online. Online claims must be resolved within three working days, however, offline claims might take up to twenty days.
Following are the steps to learn how to withdraw PF online after leaving job:
- Activate UAN: Make sure the Universal Account Number (UAN) is active and that your KYC information is up to current with the Employees’ Provident Fund Organisation (EPFO).
- Log in to the EPFO Website: Login to the EPFO member portal with your UAN and password.
- Pick the ‘Claim’ Option: After login in, navigate to the ‘Online Services’ page and pick the ‘Claim (Form-31, 19 & 10C)’ option from the drop-down menu.
- Verify Personal Information: Confirm that personal information such as name, date of birth, and bank account information is correct.
- Choose the Kind Of Claim: Choose if you need a complete withdrawal (Form-19), a partial withdrawal (Form-31), or a pension withdrawal (Form-10C).
- Fill In The Required Information: Fill in the essential information, such as the purpose for the withdrawal, the amount to be withdrawn, and any additional data.
- Upload Required Papers: Upload documents such as a canceled check, a scanned copy of the bank passbook, and the UAN.
- Submit The Claim: After filling out all of the required information and attaching the required documents, submit the claim.
- Track The Status: After filing the claim, use the UAN and password to check the progress of the withdrawal request online.
PF Withdrawal Rules after Resignation
An individual can take their accrued Provident Fund (PF) balance after retiring from employment. However, there are certain PF withdrawal rules after resignation that must be fulfilled.
One thing to keep in mind is that the rules to withdraw your PF will vary depending on the employment duration. Let’s look at the various regulations based on an employee’s tenure:
Less than 5 years
Employees can withdraw their whole PF balance after resignation if they have worked for less than five years. Form 19 must be completed by the employee and submitted to the EPFO together with the appropriate papers.
Between 5 to 10 years
After resigning, an employee who has worked for more than five years but less than 10 years is allowed to withdraw their whole PF amount.
If the employee decides to withdraw their PF balance, they will be liable to tax deductions following the tax laws in effect at the time of withdrawal. The employee can also opt to transfer their PF money to their new job or keep their PF account open.
More than 10 years
After resigning, an employee who has worked for more than 10 years is entitled to withdraw their whole PF amount.
The employee can choose to transfer money to their new job and keep their PF account open. Furthermore, the employee will be entitled to a monthly pension under the EPS system.
Here are some important PF withdrawal regulations to remember after learning how to withdraw PF online after leaving job:
- Eligibility: An employee must have completed at least five years of continuous employment with the employer to be eligible for PF withdrawal after resignation.
- Time Limit: After two months after leaving work, a person can request PF withdrawal. If they do not apply within three years of leaving the employment, their account will go inactive and they will get no interest.
- Forms for Withdrawal: To withdraw PF after resignation, a person must complete Form 19 and Form 10C. Form 19 is used for final PF settlement, whereas Form 10C is used for pension withdrawal.
- Activation of Universal Account Number (UAN): To withdraw PF online after resignation, the individual must have activated their Universal Account Number (UAN) and connected it to their Aadhar and PAN.
- Partial Withdrawal: Individuals who have not completed five years of continuous service can take a portion of their PF balance. However, there are particular PF withdrawal rules after resignation for partial withdrawal, such as medical treatment, home purchase/construction, kid education, and so on.
Cross-reference: EPFO marginally raises PF interest rate to 8.15%
Documents Required for PF Withdrawal after Resignation
Certain documentation must be presented to the Employees’ Provident Fund Organization (EPFO) to withdraw the Provident Fund (PF) following resignation. The following are the documents required for PF withdrawal after resignation:
- PF Withdrawal Application: The PF withdrawal application is the first and most important document necessary for PF withdrawal. This application can be filed online or offline, depending on the applicant’s desire.
- The UAN (Universal Account Number): This is a one-of-a-kind identifying number assigned to each PF account holder. To withdraw PF online, you must have an activated UAN. The withdrawal application must include the UAN number.
- KYC Documents: Know Your Customer (KYC) documents are necessary for identification verification. Aadhaar Card, PAN Card, Passport, Voter ID, or Driving License are examples of KYC papers.
- Bank Account Information: The individual must give bank account information for the withdrawn funds to be transferred. The bank account information includes the account number, the IFSC code of the bank branch, and the account holder’s name.
- Form 19: Form 19 is the final settlement PF withdrawal form. This form must be completed and sent with the PF withdrawal application.
Eligibility Criteria for PF Withdrawal
Now that you know how to withdraw PF online after leaving job, let’s learn more about the eligibility criteria. Individuals must fulfill specific qualifying conditions to withdraw their Provident Fund (PF). The following are the eligibility requirements for PF withdrawal:
- Continuous Service: A minimum of five years of continuous service with the employer is required.
- Retirement: At the age of 58, an individual can withdraw their PF balance. Individuals who retire early can withdraw their PF balance two months after the retirement date.
- Unemployment: If an individual is jobless for two months in a row, they can withdraw their PF balance. The withdrawal amount is restricted to the employee’s contribution plus interest.
There are certain situations under which one can withdraw their PF money, like:
- Medical Reasons: The maximum withdrawal amount is six times the monthly basic income and dearness allowance, or the entire employee contribution plus the interest accumulated, whichever is less.
- House Purchase or Construction: The maximum withdrawal amount is 36 times the monthly basic income and dearness allowance, or the entire employee contribution plus the interest accumulated, whichever is less.
- Higher Education: The withdrawal amount is limited to 50% of the employee’s contribution plus interest.
- Permanent Disability: The withdrawal amount is restricted to the employee’s contribution plus interest.
Cross-reference: PF (Provident Fund) Withdrawal For Medical Emergencies Rule Change
How to Activate UAN (Universal Account Number) for PF Withdrawal?
Individuals can activate their Universal Account Number (UAN) for Provident Fund (PF) withdrawal by following the steps outlined below:
1. Visit the Employees’ Provident Fund Organisation’s (EPFO) official website.
2. Select For Employees option from the drop-down box under the Services option.
3. Select UAN Member e-Sewa and then click on the Activate UAN button.
4. Enter the necessary information, such as your UAN, member ID, and registered cellphone number.
5. Select the Get Authorization Pin option.
6. The enrolled mobile number will get an authorization pin. Enter your authorization pin and then press the Validate OTP and Activate UAN button.
7. Complete the registration procedure by creating a username and password for the UAN portal login.
Once the UAN is active, the user may log in to the UAN site to check their PF balance, get the PF passbook, and apply for a PF withdrawal online.
Tax Implication on PF Withdrawal
Employees should be aware of the tax implications of PF withdrawal after resignation. Here are the tax regulations.
- Withdrawal before 5 Years of Continuous Service: If a person withdraws their PF balance before five years of continuous service, the amount removed is taxable in the fiscal year of withdrawal. In the current fiscal year, the taxable amount comprises the employer’s contribution, interest gained on it, and employee contribution to the PF account.
- Withdrawal after 5 Years of Continuous Service: If a person wants PF withdrawal after five years of continuous service, the amount removed is tax-free.
- Withdrawal Owing To Unemployment: If a person withdraws their PF balance due to unemployment after a two-month continuous period, the amount taken is tax-free.
- Withdrawal for Medical Reasons: In case of a medical emergency, the amount removed from the PF balance is tax-free.
- Withdrawal for House Building/Purchase: If one wants to purchase or construct a house, the amount withdrawn from the PF balance is tax-free subject to specific requirements.
Cross-reference: EPF withdrawals will be less taxing now
Common Issues faced During Online PF Withdrawal
Online PF withdrawal can be a simple and painless process, but there are several frequent complications that people may encounter. Here are some of the most typical problems encountered with online PF withdrawal which one should know about after learning about how to withdraw PF online after leaving job.
- Non-Activation of UAN: Non-activation of the Universal Account Number (UAN) is one of the most prevalent problems encountered during online PF withdrawal. To begin the online PF withdrawal process, the UAN must be activated.
- Inaccurate Bank Account Details: Incorrect bank accounts data, such as an inaccurate account number or IFSC code, might result in the PF withdrawal request being rejected or the withdrawn amount being sent late.
- KYC Not Updated: If the Know Your Customer (KYC) papers, such as Aadhar card, PAN card, or bank account data, are not updated or validated, the PF withdrawal request may be rejected.
- Non-Submission of Required Papers: If the required papers, such as the PF withdrawal application form, Form 19, Form 10C, and KYC documents, are not supplied or are incomplete, the PF withdrawal request may be rejected.
- Technical Issues: Technical glitches such as server downtime or bad internet access, might affect the online PF withdrawal procedure, resulting in delays or failures.
Here are some common questions that people ask regarding the withdrawal process of PF.
1. How long does it take to receive the PF withdrawal amount?
The time it takes to receive the Provident Fund (PF) withdrawal amount is determined by several factors, including the form of withdrawal and the length of the withdrawal process. Online PF withdrawals can take up to 10-15 days, while offline withdrawals might take up to 20-30 days.
2. Can I withdraw the partial amount from my PF account?
Yes, a person can take a portion of their PF account balance for particular reasons such as medical emergencies, home building, or schooling. However, partial withdrawals are subject to specific limitations and limits.
3. Can I withdraw my PF without a PAN card?
No, you do not need a PAN card to withdraw PF. TDS (tax deducted at source) is applied if the withdrawn amount exceeds Rs. 50,000, and a PAN card is necessary to collect the TDS money.
4. How to track the status of the withdrawal request?
Individuals can check the progress of their PF withdrawal request using their Universal Account Number (UAN) and password on the EPFO portal. Alternatively, they might seek assistance from the EPFO helpline.
In conclusion, because of the Employees’ Provident Fund Organization’s (EPFO) digitization of services, withdrawing your Provident Fund (PF) online after leaving a job has become a simple and quick process.
You can complete the withdrawal procedure by following the steps of how to withdraw PF online after leaving job easily. However, it is critical to consider the qualifying requirements, tax ramifications, and the documents required for PF withdrawal after resignation. Before making any decisions about your PF withdrawal, it is best to contact a financial expert.