It is very rightfully said that not every year or day in our lives is the same. It is important to save now, on the sunny days so that the trouble can be minimized in the rainy days.
Provident Fund is one of the ways to save for later. However, people always find it hard to withdraw their PF money after retirement or leaving their job. The reasons can be different, either you are not aware of the procedure or you are not yet eligible for it.
Here are some things that as an employer or employee you should know, but before that, don’t forget to educate employees about what they should do with their PF money.
- Withdrawing PF is allowed after retirement i.e the age of 58
- Before that, if you are deceased or physically challenged, it can be withdrawn then only
- You can take out Provident fund if you have left the job and have been unemployed for 60 days or more
- When you are unemployed for 30 days, you can withdraw 75% within 10 days the amount is settled in this case.
If you have completed 10 years, you are given a pension certificate, through which you keep getting a certain amount every month. But, if the duration is less than 10 years then you need to withdraw EPF and in this blog, we will tell you how to withdraw PF online.
IMPORTANT: Make sure all your PF accounts are merged into one and you have your UAN.
Here are different scenarios and right set of actions for PF withdrawal. Let’s begin!
● Withdrawing PF + EPF for less than ten years of service
To get this amount, you must fill the composite claim form and choose the final PF balance and the option of pension withdrawal. However, if you plan to rejoin the workplace, get the furnishing form 10C under the scheme certificate.
● Withdrawing PF+ EPF for more than 10 years of service – If after completing 10 years of service, you are planning to withdraw these, you would not be able to do so. You would be given pension after 58 age. Just in case you are over 50 you can opt for early pension but it will be reduced pension.
● Withdrawing PF and reduced pension for age 50 to 58 with more than 10 years of service – You can only get pension in this age if service period is more than 10 years. For this you are required to fill Form 10 D and then submit it with Composite Claim form.
● Withdrawing PF and full pension after 58 age – Form 10 D needs to be submitted, the procedure is quite simple, yes! Do this and you will get your pension and PF balance.
But what more should you as an employee/ employer rightfully do?
You should try and transfer the amount when you change jobs. This surely feels like a forced saving right now but you will thank yourself for doing this later. The transfer process is quite simple, automatic and online now. In a few clicks you can get all of that done. This is for those who are doing jobs or changing it but those who are starting their own business, they can instead of withdrawing it get it transferred to National pension scheme.
If in case you are planning to not transfer and keep it as it is then after leaving the job the tax on interest would be paid by you and not the employer. So, it is better and in good faith of you to transfer the amount to your new employer’s PF account or given them the same UAN as that of the previous company instead of asking them to create a new one. So, you are left with two options, either you withdraw the amount or you transfer, choose wisely. Otherwise you will end up paying tax.
We hope this blog on how to withdraw PF online/ offline helped you.