According to the rules of Employees Provident Fund Organization (EPFO), in case of unemployment, an employee can withdraw up to 75 percent of the total amount deposited in his PF account (PF Withdrawal). This facility provides assistance to employees in times of financial crisis. As per EPFO rules, employees can apply online to withdraw the amount from their PF account.
By Prashant Pandey
Published Date: Sun, 12 Jan 2025 12:43:09 PM (IST)
Updated Date: Sun, 12 Jan 2025 12:45:21 PM (IST)
HighLights
- As per the rules of EPFO, the amount can be withdrawn through online application.
- This facility of EPFO is a boon for the employees in times of financial crisis.
- Interest is also earned on the amount deposited by the employee and employer every month.
Navdunia Representative, Bhopal (EPFO News). Employee Provident Fund not only provides financial support after retirement, but also proves to be a strong support in emergency situations. EPFO has provided many such facilities for employed employees, through which they can withdraw money from their PF account at the time of unemployment, factory closure or other financial crisis.
This facility not only provides financial security, but is also a powerful means of overcoming sudden problems. The main objective of PF is to provide financial stability to employees after retirement.
You can withdraw the amount even before retirement
Interest is earned on the amount deposited by the employee and employer every month in the PF account. After retirement the employee has two options, he can withdraw the entire deposited amount in lump sum or he can receive it as monthly pension. Apart from this, the employee can withdraw some amount from the PF account even before retirement as per his needs.
If the factory is closed for more than 15 days
If circumstances like lockdown arise in a factory or establishment and it remains closed for more than 15 days, then the employee can withdraw up to 100% of the amount deposited in his PF account. This amount is made available to him without any delay, so that he can fulfill his financial needs.
In case of dismissal or layoff
If an employee is fired or removed through retrenchment and has taken legal action against him, then he can withdraw up to 50 percent of the amount in advance from the PF account.
If the factory is closed for six months
If a factory or establishment remains closed for more than six months, the employee is allowed to withdraw 100 percent of the advance amount. When the factory reopens, the employee has to repay this amount in 36 installments from his salary.
Provision for non-recoverable advance
If an establishment remains closed for more than five years, this amount is converted into non-recoverable advance on the written request of the employee. This means that the employee will not have to return this amount.
This provision is especially beneficial for those employees who remain unemployed for a long time. EPFO also provides the benefits of seven types of pension schemes to the employees on PF account. These include facilities like monthly pension, lump sum amount after retirement, and emergency pension. These schemes provide financial help to the employees as per their needs.
in case of unemployment
If an employee remains unemployed for a month or more due to any reason, he can withdraw up to 75 percent of the total amount deposited in his PF account.
PF withdrawal online process
At present, EPFO has made the process of PF withdrawal simple and digital. The employee can apply for withdrawal online using his Universal Account Number.
For this, first login to the EPFO website, enter your UAP and password, click on ‘Claim’ option and fill the required information, select the reason for advance withdrawal and after clicking on the submit button, the amount will be transferred directly to the bank account. Is.
