Saving and saving for the future holds a dear spot in all of our lives because humans crave safety and security in contrast to uncertainty and unpredictability. This gave rise to the concept of Employee Provident Funds (EPF) which ensures a safety net for every worker’s future irrespective of the sector they worked in.
The Employee Provident Funds (EPF) is a savings scheme that provides financial security to employees after retirement. It is a mandatory program to safeguard every salaried employee’s future in India. EPF works under the Employees’ Provident Fund Organisation (EPFO). To keep up with the time, changes and amendments are incorporated regularly in every system and changes are introduced in the EPF as well.
Read More: How To Check PPF In Different Modes, All You Need To Know
What Are Employee Provident Funds (EPF)?
Employee Provident Funds (EPF) is a government pension scheme wherein both, the employer and the employee contribute a certain fixed amount toward the fund which is then used by the employee after retirement.
New Guidelines For EPF Withdrawals In 2024
In 2024, certain new guidelines have been introduced for withdrawing from one’s EPF account to make the system more organised and user-friendly. The key changes are mentioned below:
-
Partial withdrawal for medical emergencies: Employees are given the power to withdraw up to 75% of the money in their EPF account for medical emergencies either for themselves or for a family member. This helps the employees in critical times.
-
For education and marriage: Employees are now allowed to withdraw half of the fund from their EPF account for personal reasons such as either for educational purposes or marriage either for themselves or for their family members.
-
Purchasing land or house: EPF members can avail 90% of the funds from their EPF account in case of purchasing a land or house.
-
Withdrawal after resignation: Employees who resign before their service is completed naturally can avail the funds from their EPF account after a 2-month waiting period. However, they are required to keep 25% of the total balance in the account for future emergencies if they haven’t attained the age of 58.
-
Unemployment withdrawal: Employees who remain unemployed for more than a month are eligible to withdraw 75% of the funds from their EPF account. Employees who remain unemployed for 2 months can withdraw the rest 25% as well. This change was introduced to help employees during the stressful phase of job-hunting.
-
Full withdrawal upon retirement: Full withdrawal without any waiting period can be done by those employees who attain retirement after the age of 58.
-
Withdrawal for overseas employment: Employees who shift abroad can withdraw funds from their EPF account after resigning. They are required to submit a document to submit their employment in an organisation abroad.
-
EPF nomination: EPFO has made nominating family members a compulsion for the EPF account holders.
-
Online withdrawal: EPFO encourages employees to withdraw money through online channels as it is easier to access and quicker to process.
Also read: Withdraw Your PF Money Easily After Leaving Your Job
How to Withdraw Funds From One’s EPF Account Online?
One can withdraw funds online from their EPF account by following the below steps:
-
Visit the official EPFO portal and click on the ‘for employees’ section on the homepage.
-
Click on the ‘Member UAN’ option and log in using your Universal Account Number (UAN) and password.
-
Complete your KYC from the ‘manage’ tab.
-
Navigate to the ‘online services’ option which will lead you to the ‘Claim (Form-31, 19, 10C, & 10D)’ for withdrawal.
-
Verify your details like name, PAN, and Aadhar card number.
-
Provide your bank account details and ensure that it is linked to your UAN.
-
Select the purpose of your withdrawal.
-
Submit your withdrawal request.
-
Keep checking the status of your withdrawal request which is usually completed within 5 to 10 days.
Read More: Pradhan Mantri Shram Yogi Maan-dhan (प्रधानमंत्री श्रम योगी मानधन योजना) | PM-SYM Registration Online
Conclusion
The guidelines for EPF withdrawal in 2024 are more flexible and employee-friendly than before. These new rules are made by keeping in mind the needs and requirements of the employees and ensuring that their interest is fulfilled.
You can also reach out to Jaagruk Bharat through their community page with any questions that you might come across.
