How to withdraw EPF Online as per New EPF Rules in 2020?
Few days back, Finance Minister indicated that due to the Covid-19 crisis, it has relaxed EPF rules in 2020 where one can withdraw 75% of corpus or 3 months of wages whichever is lower. Since many of us might be struggling for funds now, you can check if you want to use this option which can help you during this crisis situation. In this article, we would provide who is eligible to withdraw this money and how to apply to claim this 3 months wages or 75% of EPF corpus and withdraw this amount from EPF online.
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What are EPF Withdrawal Rules and amended rules in 2020?
While there are specific guidelines about EPF withdrawal, considering the current situation finance minister has proposed to amend the EPF withdrawal guidelines indicating as non refundable advances. One can withdraw lower of the following:
1) 3 months wages.
2) 75% of EPF Corpus accumulated till now.
Lowest of the above is considered as a non refundable advance and can be withdrawn by the EPF subscriber.
How do I know what amount I am eligible to claim as per this new EPF guideline?
You need to have your payslip + access to EPF passbook or EPF balance to check the eligibility.
1) Take your payslip and check the basic salary + dearness allowance. E.g. Your total monthly salary is Rs 60,000 and basic + DA is Rs 20,000, the eligibility would be 20,000 x 3 = Rs 60,000.
2) You can check EPF balance with any of the below methods
i) Visiting the EPF portal
ii) Give a missed call or
iii) Through SMS request to EPF number
You can get detailed info here on how to check EPF balance online.
There are EPF corpus and EPS corpus and you should not get confused. You should check only EPF corpus. The eligible amount under this bucket would be 75% of EPF corpus. E.g. if you have an EPF corpus of Rs 6 Lakhs, you are eligible for Rs 4 Lakhs (Rs 6 lakhs x 75%).
3) Your eligible withdrawal amount under new EPF rule 2020 would be lowest of what you calculated at point no. 1 and 2.
In the above example as per point no. 1 is Rs 60,000 and as per the point no. 2 is Rs 4 Lakhs, lowest of this would be Rs 60,000. This is the eligible EPF withdrawal amount which you can withdraw now.
How to withdraw EPF Online – 3 Months Wages or 75% of EPF corpus whichever is lower?
The process of EPF withdrawal is same like you do for other EPF withdrawals. Once you decide to withdraw this EPF money, here is the step-by-step process for EPF withdrawal online:
Step-1: Visit EPF UAN portal at this link.
Step-2: You need to enter the UAN number (which would be in your pay slip), password and enter the captcha. If you have not registered earlier, first you need to register yourself.
Step-3: If you have withdrawn EPF earlier, you can proceed to the next step, else continue this step. Click on ‘Manage’ and select KYC. You need to add your PAN, bank and Aadhaar details here. If any of the names indicated having a mismatch, you cannot proceed. I had a similar problem earlier where my name as per payslip was P Suresh Kumar and as per bank and Aadhar was Podixxxx Suresh Kumar. I had to ask my employer to correct it before I had to proceed further. If you are facing a similar situation, just reach out to your HR department.
Step-4: Once KYC is completed, now visit “Online Services tab and select the first option which is ‘Claim (Form-31, 19, 10C & 10D)’.
Step-5: This screen is called ‘Claim’ screen and it would display the EPF member details, KYC details and other service details. You need to enter the last four digits of your bank account and click ‘Verify’ to proceed further.
Step-6: This is like a signature / acceptance page. You need to click on ‘Yes’ to sign the certificate of the undertaking and then proceed to the next step.
Step-7: You need to click on ‘Proceed for Online claim’.
Step-8: Select drop down of “I want to apply for “ and select ‘PF Advance (Form 31)’.
Also Read: What is Superannuation and how to calculate it?
Step-9: This is a crucial step. Depending on your status, some options might not be visible. There are options like full construction of house, non receipt of wages, marriage, natural calamities etc. Since you are claiming 3 months wages or 75% of EPF corpus whichever is lower, you need to select ONLY “OUTBREAK OF PANDEMIC (COVID-19)”.
Step-10: Enter the eligible amount and employer address. You also need to upload the scan copy of the Cheque / Bank Passbook. You need to accept T&C button and click on “Get Aadhar OTP” and submit it. The employer has to approve the EPF withdrawal request and then it would be processed and paid to your bank account. It usually takes 2-3 weeks to get the your EPF money in your bank account.
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How to withdraw EPF Online – Lowest of 3 Months Wages or 75% of EPF corpus
Sir Mera adhar link nhi hai UAN no me to apply or sklta Hu
Hello Sir. Please post on nirmiteerobotics IPO
Does this withdrawal is taxable, if it is claimed before 5 years? Nowhere described about taxation part. Please clarify.
In the last point, you mentioned that “upload the scan copy of the EPF passbook”.
But i think, it is Bank pass book or cheque.
BTW, I am vivid follower of all your articles.
I appreciate your effort to educate us.
Thank you Bhanu for the correction. I just updated this.
I have a question related to EPF and not relevant to this article. Hope it is okay to ask.
I am having this account from June 2015. In the passbook I do not see any contribution under the heading “Pension Contribution”. Equal amount (Employer share and Employee share) is there under the heading “Deposit”. Does it mean all the Employer contribution is going under EPF and none under EPS.
lawish, Ideally there should be amount under EPS too. Pls download latest passbook from EPF portal and check