Each month, both the employee and employer contribute to the PF account, and interest is paid on that deposited amount. Once the employee retires, they have a couple of choices, they can either take out the full amount in one go or opt for a monthly pension. Additionally, employees can withdraw some funds from their PF account before retirement if needed.
If someone gets fired or laid off and has taken legal steps regarding it, they can access up to 50% of their PF balance early. In cases where a factory or establishment is shut down for over six months, employees can withdraw the entire advance amount. When the factory reopens, they’ll need to pay back that amount through 36 installments from their salary. If an establishment is closed for more than five years, the employee can request in writing for that amount to be treated as a non-recoverable advance, meaning they won’t have to pay it back. This is particularly helpful for those who are out of work for an extended period.
The EPFO also offers seven different pension schemes linked to the PF account, including options for monthly pensions, lump-sum payments after retirement, and emergency pensions, catering to various financial needs. If an employee is unemployed for a month or longer, they can withdraw up to 75% of the total amount in their PF account.
The online PF withdrawal process is now super easy thanks to EPFO. You can use your Universal Account Number to apply for withdrawal online. Just head over to the EPFO website, log in with your UAAP and password, and hit the ‘Claim’ option. Fill out the necessary details, choose your reason for the advance withdrawal, and then click the Submit button. After that, the money will be sent straight to your bank account.
