Best Way To Withdraw PF Amount?

Employees can’t take their EPF money out till they’ve retired. In other circumstances, however, this regulation may not apply, and the money can be removed. Let’s look at how and when EPF withdrawals can be made, as well as why the Universal Account Number is so important (UAN).

When you got your first pay stub, you probably noticed a PF deduction bracketed. Your contribution to the Employee Provident Fund, or EPF, is the source of that deduction.

Employees must contribute a percentage of their salary to their retirement fund under the EPF plan, which is mandatory in all employers. Employees can live independently once they quit working because their company contributes the same amount to the fund. The money you put into the EPF earns interest every year and can be used as a corpus when you retire.

Employees cannot withdraw the EPF amount until they have retired because it is a required system. However, because we all experience life situations that force us to rely on our funds. There are times when this EPF withdrawal regulation does not apply.

Today, we’ll talk about when and how you can withdraw money from your EPF to address a pressing necessity. But first, we must grasp the concept of the Universal Account Number, or UAN.

According to the Provident Fund Act, an employee would have just one. PF account with the Employees’ Provident Fund Organisation (EPFO) over their lifetime. Which will remain active even if they change jobs. The UAN is the name of this account. It is linked to an employee’s PF account within a company. Allowing them to move jobs without having to transfer their EPF.

When may you start taking money out of your EPF account?

Maintaining an EPF fund when you are not earning a wage is pointless. As a result, you are eligible for the entire EPF amount if you:

1. You’ve made the decision to leave the workforce.
2. You have been unemployed for at least two months.

However, there are other circumstances in which you may be able to take a partial EPF withdrawal from your hard-earned earnings. These are some of them:

• Marriage — If you’ve worked for seven years, you can withdraw up to half of your EPF quota for your own, your children’s, or your sibling’s wedding.
• Education – After seven years of employment, you can take up to half of the employee’s EPF allotment for educational purposes.
• Land purchase – After five years of service, you can withdraw up to two years of your monthly pay, plus the Dearness Allowance. To buy land in yourself or jointly with your spouse.
• House purchase or building – After five years of service, you can withdraw up to three years of your monthly pay plus the Dearness Allowance for the purchase or construction of a home in your or your spouse’s name or jointly.
• Home loan – If you have worked for 10 years, you can withdraw up to 90% of your EPF balance (including employer and employee contributions) for a home loan, as long as you have at least Rs. 20,000 in the fund, including interest. In addition, the property must be in your or your spouse’s name, or jointly in both of your names. And you must be able to provide any documentation requested by the EPFO.
• House remodelling – If you’ve worked for five years, you can take up to a year’s pay to renovate your home. As long as it’s in your or your spouse’s name or jointly owned by both of you.
• Early Retirement – Once you reach 57 years of age, you can opt for early retirement and withdraw up to 90% of the balance including the interest.

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