Lost your job amid pandemic? Here's how you can withdraw your PF money
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You can file a PF withdrawal claim using your UAN on the EPFO portal. In order to raise the claim, make sure that the UAN has been activated and bank details, KYC documentation has been updated.
New Delhi: The coronavirus crisis has cost many people their jobs. Several people are either dealing with salary cut or are being laid off. In fact, the International Labour Organisation (ILO) recently warned that 1.6 billion workers in the informal economy, nearly half of the global workforce, is in immediate danger of having their livelihoods destroyed. People in the organised sector are also suffering due to COVID-19 due to job losses and pay cuts.
Because of the sudden salary cut or unemployment, people are struggling financially. Some are not able to pay their rent, EMI and utility bills. Necessary expenses have also become a financial burden for many. The Employees' Provident Fund Organisation (EPFO) allows subscribers to withdraw money from their PF account prematurely for several reasons such as medical requirements, house construction, educational needs, etc. It also allows subscribers who have become unemployed, to withdraw funds from their PF accounts.
PF withdrawal rules:
This is to help those financially who are hit by job losses. This also helps those people financially who have taken a sabbatical from work. As per general EPFO rules, individuals who are terminated from their job are allowed to make a withdrawal of 75% of their accumulated corpus after 1 month from when they are terminated. If they remain unemployed for two months, they can withdraw 100% of their PF money and close terminate the account.
If you lost your job amid the pandemic, here's how you can withdraw your PF money:
How to withdraw from EPF account: Raising a PF withdrawal claim is very easy. You can file a withdrawal claim using your UAN on the EPFO portal. In order to raise the claim, make sure that the UAN has been activated and that the bank details and KYC documentation has been updated on the PF portal.
Step 1: Log in to EPFO's unified portal with your UAN and password.
Step 2: On the ‘Our Services’ tab, select the ‘Claim’ option from the drop-down list.
Step 3: You will find three types of withdrawal claim — full withdrawal, partial withdrawal, or pension withdrawal — in ‘I Want to Apply For’ section. The drop-down box with types of withdrawal will be displayed only if you are eligible to avail it.
Step 4: The PF amount will be credited directly to your bank account after it is approved.
Income tax on PF withdrawal:
It is worth mentioning that in case of EPF withdrawal after 5 years of continuous service, the amount withdrawn (both principal and interest) is exempt from tax. If the withdrawal happens before completion of 5 years of continuous service, it is fully taxable.
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