New Employee Provident Fund (EPF) Withdrawal Rule Explained

New Employee Provident Fund (EPF) Withdrawal Rule Explained

EPF or employee provident fund withdrawal claims above Rs. 10 lakh have to be filed online. Retirement fund body EPFO or Employees Provident Fund Organisation has made it mandatory to file online claims for claim settlements above Rs. 10 lakh. This was said in a notification by EPFO on 27 February. For EPS (Employees Pension Scheme), the limit is Rs. 5 lakh, which means that pension scheme withdrawals beyond Rs. 5 lakh have to be made online only. Currently, EPFO subscribers have the option of filing online as well as manual claims for provident fund withdrawals.

“In case the amount of claim settlement is above Rs. 10 lacs for PF claims and Rs. 5 lacs in respect of EPS withdrawal claims, the claim form must be accepted through online mode only,” the retirement fund body said in a circular. An employee’s 12 per cent contribution goes towards the EPF kitty, while 8.33 per cent out of the total 12 per cent of the employer’s contribution is invested in EPS or pension scheme. The balance 3.67 per cent is invested in EPF.

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EFPO members with authenticated Aadhaar and bank details seeded against their UAN (Universal Account Number) can submit their provident fund withdrawal/settlement/transfer claims online, according to EPFO’s website – epfindia.gov.in. A UAN acts as an umbrella for the multiple member IDs allotted to an individual by different establishments. The idea is to link multiple Member Identification Numbers (Member IDs) allotted to a single member, under a single Universal Account Number.

EPFO has nearly six crore subscribers and manages a corpus of Rs. 10 lakh crore. It receives about one crore claims each year.

EPF Withdrawal: How To Submit Claim Online

1) For submitting a withdrawal claim online, subscribers have to log into EPFO’s member interface using UAN credentials.

2) After this, the subscriber is required to select the relevant claim by clicking on the ‘Online Services’ tab.

3) For final settlement of a provident fund deposit, the subscriber is required to select Form 19. He or she can select Form 31 for part withdrawal and Form10-C for pension withdrawal benefits.

4) EPFO subscribers can track their claim requests online as well. For this, they can click on the Online Services tab and then ‘Track Claim Status’.

As part of the government’s Digital India initiative, EPFO plans to go paperless this year. With that, the provident fund body aims to improve delivery of services for its six crore subscribers.

 

Source by ndtv..

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