PF Withdrawal Rules 2022: Everything You Need to Know
PF Withdrawal Rules 2022: Introduction
Employee Provident Scheme or EPF is a government-based retirement saving scheme. In this contribution-based saving scheme both the employees and employers contribute a certain amount of money that will monetarily support the employees after their retirement.
This corpus can be easily approached and withdrawn by the individual employees according to the Provident Fund or PF withdrawal rules.
Employees’ Provident Fund Organization is the governing body of the Employee Provident Fund in India and it aims to provide economic assistance to the Indian citizens who are employed in the private, corporate, or organized sectors.
Provident Fund Rules 2022: Withdrawal System
The corpus accumulated in the provident fund is designed to be withdrawn after an employee or individual retires. However, there are certain rules for withdrawing money from provident fund
accounts. The accumulated sum can be utilized and withdrawn for emergency purposes.
Any employee or individual can make three different types of accounts in the Employee Provident Fund. These are:
- Provident Fund final settlement
- Provident Fund partial withdrawal
- Pension withdrawal benefit
Before the corpus reaches its maturity, any individual or employee can withdraw the partial amount from their PF account in case of specific situations. Following are the circumstances where you will be eligible to withdraw money from your PF account prematurely.
Withdrawal Rules of Provident Fund 2022
In case you are unemployed
Any Provident Fund account holder who has been unemployed for more than one month can withdraw up to 75 percent of their total corpus amount from their provident fund account. If the unemployment elongates over two months the employee can also withdraw his or her remaining 25 percent corpus from the PF account.
Provident Fund account holders are eligible to extract around 50 percent of their total employee contribution from their individual Employee Provident Fund account if they want to pursue higher education or bear the education cost of their own children after they have passed the 10th standard. After completing seven years of contribution to your Provident Fund account the fund will become transferable.
Payment for marriage
The current Provident Fund withdrawal rules have allowed the provident fund account holders to extract about 50 percent of their total corpus amount in order to pay for their expenses in their marriage.
The marriage can be of the account holder, their son, brother, daughter, and sister. However, similar to the educational purpose, withdrawing for marriage is only allowed after the account holder has contributed to his or her provident fund account for at least 7 years.
Withdrawal in case of specially-abled individuals
According to the new provident fund, withdrawal rules 2022, specially-abled individuals can pay for their equipment by withdrawing money from their EPF account. The amount of money they can withdraw is six months' basic wage along with DA or dearness allowance or the employee’s share with interest (whichever is considered less).
In order to ease up the financial burden of purchasing expensive equipment for specially-abled individuals, this new rule has been implemented for PF withdrawal in 2022.
In the case of medical emergencies
If you want to pay your urgent medical expenses and bills then you can also withdraw money from your PF or EPF account. You can use the money for yourself or your immediate family members.
Furthermore, you are eligible to extract a basic wage of six months along with dearness allowance or DA or you can also opt for an employee’s share with interest associated (whichever will be considered less).
In order to pay the prevailing debts
If you want to pay for your home loan through EMIs you are allowed to withdraw 36 months’ basic salary with dearness allowance or the aggregate of the employee and the employer’s share in addition to the interest. However, you will be eligible for this facility only after you have contributed for at least 10 years to your EPF account.
For purchasing land plots and residential properties
As per the Provident Fund withdrawal rules the employees can make a premature withdrawal in order to buy empty lands or readymade houses. In this case, the EPFO has also allocated a withdrawal limit in this case.
The withdrawal limit in this case is the basic wage of 24 months along with dearness allowance from the accumulated fund of your PF account (employee and employer’s share included).
For house renovation
The new rules in the Provident Fund have also arrived with a provision that can enable the employees to withdraw basic wage and dearness allowance of 12 months along with the employee’s share (and interest) in order to improve, expand or renovate their home.
The property can be employees' own, jointly owned, or owned by their spouse. Any individual or employee can avail of this facility twice and that too after owning the property for at least five years. Not to mention, the individual or employee will have to contribute for at least 10 years before they will be allowed to withdraw the funds.
The revised EPF rules also allow the individual to extract around 90 percent of their total accumulated funds after they have reached 54 years of age or a year before their retirement. In case of the employee’s sudden death (while they were still in service), the nominee or beneficiary of the individual is allowed to apply for settlement using Form 20 or Form 10D to apply for a monthly pension.
The new and revised PF rules have allowed the employees and individuals enough flexibility when an emergency situation arrives.
How You Can Enter, Exit, and Withdraw from Your PF Account
If the withdrawal from your PF account is getting delayed, one of the reasons could be that you have not specified the exit date. In order to avoid this situation, the EPFO or Employees Provident Fund Organization has created a unique feature in its unified portal where the employees can enter their date of departure from the previous company or employer by themselves.
Before, only the employers were allowed to input the exit date, but now the employer can also do the same.
You can log in to the UAN portal using the UAN or Universal Account Number (UAN) account number and password and you will be able to provide the exit date. Nevertheless, you need to check your service history first, before entering your exit date.
Follow the steps mentioned below in order to input the exit date:
- Open the UAN website and log into your account using the UAN account number and password.
- Go to the top panel and select ‘Manage’, after that click on ‘Mark exit’
- Now from the drop-down menu select your employer.
After that, you will be redirected to a new page where you will have to enter your date of joining the company, date of birth, and the date of your exit. If your departure date is before the 15th of any month then you can refer to the same date on your resignation letter.
Grievance Portal of PF Withdrawal
If you want to register any complaints about the services of EPFO then you can do the same by visiting the Grievance Portal of EPFO. In this portal, you can file any grievances, convey a reminder and regularly explore the status of your complaint.
Decreasing Tax Burden on EPF Withdrawal
Any EPF account holder can decrease their tax liabilities on premature withdrawal of PF funds. Normally, the withdrawals from PF accounts are eligible for TDS but according to the new EPF rules 2022 withdrawing funds after a minimum service of 5 years, the TDS will not be deducted.
EPF is already a contribution-based government saving scheme and you will be able to transfer your EPF account using the UAN number. The new withdrawal rules of EPF have made the system more advantageous for the individuals who are working in the private and organized sectors.
What is the new rule of PF withdrawal?
According to the new PF withdrawal rule, if an individual withdraws money before completing five years of service, then a TDS of 10 percent will be deducted from the total amount (if the amount is more than Rs. 50,000). However, if the individual or employee submits a 15G/15H form along with his Aadhar card then no TDS will be implemented.
Can I withdraw 100% PF amount?
According to the new guidelines, due to the COVID-19 pandemic people who are going through financial difficulties can withdraw a specific amount of funds from their EPF account.
How many days after we can withdraw PF?
Normally, there is a 2-month waiting period when it comes to withdrawing your provident fund money after your resignation. If you are opting for your next job abroad then you will be able to withdraw your EPF account funds immediately after your resignation.