Also, you can use this money if needed. But the entire amount of PF can be withdrawn only on two conditions. The first condition is that you are retired. Retirement age is considered by EPFO ​​to be more than 55 years. The second condition is that even if you are unemployed for two months, you can withdraw PF funds.

Apart from these, the entire amount of PF cannot be withdrawn under any circumstances. After one month of unemployment, you can withdraw only 75 percent of the amount. The outstanding amount is transferred to your new EPF account when you get new employment. The amount can be withdrawn only up to a limit for the need of home loan and marriage in the family, etc., there are some conditions. Know here those conditions and method of withdrawal.

These are the conditions for home loan

The employee must be in continuous service for 5 years to withdraw money for construction or purchase of a house.

If the employee needs to be in service for at least 3 years for home loan. In such a situation, he can withdraw up to 90 percent of the amount. For needs like marriage, the employee needs to be in service for 7 years. In such a situation, he can withdraw up to 50 percent of his deposit. There is no prerequisite for medical treatment.

How to withdraw money

STEP 1: The EPFO ​​member has to log on to the e-sewa portal unifiedportal-mem.epfindia.gov.in. 

STEP 2: After this click on Manage and select KYC and check your KYC.

STEP 3: After this, going to the ‘Online Services’ tab, click on ‘Claim (Form-31, 19, 10C & 10D)’.

STEP 4: Now a new page will open in front of you. On this page, the member has to enter the bank account number linked to the UAN. After that click on ‘Verify’.

STEP 5: The ‘Certificate of Undertaking’ needs to be approved before proceeding for Bank Account Verification.

STEP 6: Now click on ‘Proceed For Online Claim’.

STEP 7: Now the member has to choose the reason for withdrawal from the PF account from the given list. Here you will see only those options that you are eligible for.

STEP 8: Now the member has to enter his full address. Also, the member has to upload the scanned copy of the check or bank passbook on the portal.

STEP 9: Now selecting the terms and conditions, click on ‘Get Aadhaar OTP’.

STEP 10: Now an OTP will come on the mobile number linked with Aadhaar. Enter it and click on claim. After some time your PF amount will be transferred to your account.

The post EPFO Big News: The entire amount of PF can be withdrawn only on these two conditions, know how the funds will be transferred to your account first appeared on Rightsofemployees.com.

Sandeep Kumar, a resident of Pune, recently completed his studies and started a job in a tech company at a good package. Sandeep was eagerly waiting for his first salary and at the same time some preparations were going on in his mind for the future.

The month was over and the company deposited the first salary in Sandeep’s bank account. The happiness of salary was visible on Sandeep’s face, but as soon as the salary slip came, he was blown away to see that there is some confusion in the deduction in PF. Actually, Sandeep knew this and the same thing was recorded in the offer letter received from the company that 12 percent of his basic salary would be deducted and deposited in the provident fund account.

Now when the salary slip came in his hand, seeing it, Sandeep’s maths got messed up. He felt that the company had cheated him, because the amount that had come to the PF account after deducting his basic salary, was not visible from the company’s side. So, does the contribution of the company remain low or does the money deposited by it go somewhere other than the PF account of the employee. Like Sandeep, such questions must have arisen in the minds of many salaried people. Today we are telling you the solution by quoting experts.

The employer also contributes 12 percent, investment matters expert Balwant Jain says that there is no doubt in this matter that the company also contributes to the PF equal to 12 percent of its basic salary to its employee. But, where the entire 12 percent amount deducted by the employee is deposited in his PF account, the entire contribution made by the employer does not go to the PF account of the employee. That’s where the whole confusion starts.

So where does the money go?

Actually, out of the 12 percent contribution given by the employer to the employee, 3.67 percent amount goes directly to the PF account of the employee. At the same time, 8.33 percent part gets deposited in the pension scheme of the employee and this amount is not visible to the employee in his PF account. Out of this contribution of the employer, 0.5 per cent is deducted as Employee Deposit Linked Insurance, 1.1 per cent as EPF Administration Charge and 0.01 per cent as Employee Deposit Linked Insurance Scheme charges.

On retirement, the employee gets the full part of his contribution and the remaining part deposited after deducting the pension contribution from the employer. At the same time, pension is distributed to the retired employee every month from the amount deposited in the pension fund.

The post EPFO Big News: Does the employer’s contribution equally go to your PF account? Where is the money divided, understand the complete arithmetic first appeared on Rightsofemployees.com.