How to Withdraw Pension Contribution in EPF: If you have an active Employees’ Provident Fund (EPF) account, you and your employer both contribute a certain amount to it. It is one of the financial strategies that may be used to save for one’s post-retirement years. Keep reading!
After retirement, the employee may take the whole amount, or he or she may make premature withdrawals from the EPF account if certain requirements are met prior to retirement.
So, if you’re wondering how to withdraw EPF pension contributions, read on.
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What is EPS (Employee Pension Scheme)?
Employee Pension Scheme (EPS) was established in 1995 by the people’s Provident Fund Organisation (EPFO) for the benefit of people working for businesses and groups.
Employees who participate in this program are eligible for an employee pension plan.
You and your employer will each contribute 12% to your EPF account. The EPS will receive 8.33% of the employer’s 12% contribution (up to a ceiling of Rs.15,000), with the remainder going to the EPF.
EPF is compulsory for all persons with a monthly salary of less than Rs.15,000.
When to Withdraw Your Pension Contribution
According to the EPF Act, anybody who retires after finishing his or her service can get the pension amount by following the required procedures. To withdraw the EPFO pension, however, the following criteria or conditions must be met:
If you have worked for 10 years and are above the age of fifty, you can claim your pension early.
However, you will only receive a reduced pension in that case. The pension rate reduces by 4% every year until you reach the age of 50.
When you have served for fewer than ten years but more than six months, you can withdraw your pension contribution without penalty. You can, however, remove it after two months of being unemployed.
Many people have reached the retirement age of 58 yet have not served for ten years or more in some cases. Such incidents are more likely to occur if one enters the organized sector after the age of 48.
Employees are not entitled to a monthly pension in such instances. Despite the fact that you will not get payments on a regular basis, you can take the whole amount from your EPS account in a single payment.
Documents Required to Withdraw From EPF
Here is the list of documents you will need to withdraw the pension contribution:
- 2 revenue stamps
- Address proof
- Bank account statement
- Identity proof
How to Withdraw Pension Contribution in EPF
You can withdraw EPS through both online and offline modes.
EPS pension withdrawal online process:
There is no difficult method involved. However, linking your Aadhaar with your UAN is required for the online process.
- To begin, go to the Unified Member Sewa site and log in using your password and UAN.
- Under the ‘Online Services’ tab, select ‘Claim (Form-31, 19 10C & 10D)’.
- The screen will display the member’s details, KYC, and other service information.
- Enter the bank account number and press the ‘Verify’ button.
- Choose the claim type ‘Withdraw Pension Only.’
- Go to the ‘I want to apply for’ tab and choose ‘Only Pension Withdrawal (Form 10C).’
Then fill out Form 10C with your permanent address and check the disclaimer box.
- Click ‘Get Aadhaar OTP.’ Your Aadhar-linked mobile number will get an OTP.
- Enter the OTP, then click ‘Validate OTP’ and ‘Submit Claim Form’.
- After successfully submitting Form 10C, an SMS notice will be issued to the registered mobile phone, and the EPS pension amount gets transferred to the savings bank account.
EPS Pension Withdrawal Offline Process:
- Download the EPFO website’s composite claim form (with or without Aadhaar).
- If you use the composite claim form (with Aadhaar), you must give your bank information and link your Aadhaar number to your primary account number.
- If you apply using a composite claim form without Aadhaar, you must link it to an account number.
- Finally, after supplying the necessary information, send the form to the jurisdictional EPF Office.
EPF is a great way to save money for the future. You can also save taxes on the interest you earn with this arrangement.
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How Much Can a Person Withdraw From an EPF Account?
If you wish to withdraw money from your EPF account before you retire, there are certain restrictions. In the following circumstances, you may be able to withdraw contributions from your EPF:
|Condition When You Can Withdraw EPF||EPF Limit for Withdrawal|
|Wedding Ceremony||50% of the total EPF contribution to date|
|Medical Emergency||It can be 6 times your present monthly salary or the entire corpus, whichever is less|
|Home Renovation||12 times your current salary|
|Repayment of Home Loan||Not more than 90% of your EPF contribution|
|Unemployment||In such a scenario- 25% of the EPF contribution after 2 months of unemployment, and|
75% of the EPF contribution after 1 month of unemployment
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