1. Planning to withdraw your EPF? All you need to know about new norms

Planning to withdraw your EPF? All you need to know about new norms

The new Employees' Provident Fund withdrawal norms, initially notified on February 10, would make it tough to access the entire amount if you do not meet the criteria set out.

By: | Published: April 6, 2016 1:54 PM
EPF withdrawl EPF withdrawal new norm: The existing withdrawal rules say that a subscriber who has been out of job for two months can apply for withdrawal of the entire accumulated corpus. However, once the new norms come into play this would change. (Reuters photo)

Are you planning to withdraw your Employees’ Provident Fund (EPF) corpus? If you have been without a job for two months and want the entire corpus to come to your kitty in one go, you should apply for withdrawal before April 30. This is because the Employees’ Provident Fund Organisation (EPFO) has recently deferred the applicability of the new withdrawal norms from May 1, 2016. The new norms, initially notified on February 10, would make it tough for you to access the entire amount if you do not meet the criteria set out.

As per EPFO norms, 12 per cent of an employee’s salary goes as contribution to EPF along with a matching contribution from the employer.

The existing withdrawal rules say that a subscriber who has been out of job for two months can apply for withdrawal of the entire accumulated corpus. However, once the new norms come into play this would change.

So, what do the new norms say? And how are they different from the present norms?

Change in retirement age: For starters, the new norms would set the retirement age for provident fund purposes to 58 years against the earlier 55. The revised norms are pegged around this age criteria.

How much can you withdraw? Unlike the present status, the new norms would make it difficult to withdraw the entire corpus (including employer’s contribution, employee’s contribution and the interest accrued) lying against your name. Under the new provisions, if you are below 58 years, and employed, you will be able to withdraw only your own contributions lying in the fund and the accrued interest on that. You will be allowed to withdraw the employers’ contribution only when you attain 57 (one year before the retirement age of 58). Since the earlier retirement age was 55, you could withdraw the entire amount once you reached that age, which will be pushed back year from May 1.

The 90 per cent provision: With the present 55 years retirement provision, the EPF norms says that a subscriber is permitted to withdraw up to 90 per cent of the entire balance (employer’s contribution, employee’s contribution and accrued interest) once you attain 54 years or within a year of actual retirement. Once the new 58 years retirement age provision kicks in, the withdrawal option will be available once you attain 57 years. And the entire corpus, instead of 90 per cent, can be pulled out at one go.

Membership to stay: The new norms would force you to remain an EPFO member till retirement age of 58, or between 57 and 58 if you wish to pull out your money a year before. This is because the employers’ contribution cannot be withdrawn till that time.

Earlier, once an employee withdrew the entire amount at any time citing two months of being without an employment, your EPFO membership would terminate.

Exemption for women: The new norms make it easier for women It stipulates that woman who quit their job for getting married, pregnancy or childbirth will not have to wait for two months to withdraw. They can do so immediately.

Withdrawal before 5 years to be taxed: However, as earlier, if you withdraw your PF money within 5 years of joining as a subscriber, your withdrawal would be subject to Tax Deduction at Source (TDS) if the amount is above Rs 30,000.

  1. R
    Randolph Clint Merandez
    Apr 29, 2017 at 4:41 pm
    Hi. I have just received a mail regarding withdrawal of PF with only self declaration for many purposes. Wanted to know if I can withdraw an amount to pay off my home lon. Which is around 1.4 lakhs.
    1. Tracer Defaulters
      Jun 9, 2017 at 11:32 pm
      HI CLINT, PLEASE CALL ME ON 9848106065
    2. V
      Vijay Kumar
      Jan 14, 2017 at 1:39 am
      This rule is bad for all employees. So sad
      1. S
        Shabana shaikh
        Jan 18, 2017 at 4:32 pm
        This is a very rediculous and non supporting term actually for a married woman who's husband is not financially supporting and if that women needs urgent money help and depending on her own hardwork saving wants to withdraw her pf money to solve her problems in such conditions the government is self is becoming a cause making a needy woman helpless and demotivative.
        1. S
          sadik shaikh
          Jan 26, 2017 at 4:47 am
          SirIam sadik shaikh from NasikIam member of epf from January 2005 to November 2016I want to withdrawal of my pf fund....But now withdraw? ?????Wet???
          1. T
            tapas mukherjee
            Jan 3, 2017 at 1:20 am
            Pf withrol to my help
            1. V
              Vijay pawar
              Mar 7, 2017 at 2:13 pm
              1. P
                Apr 29, 2016 at 7:42 am
                This is an act of govt which is trying to say " hum tho yehi karenge, jo ukanda hai ukadlo" ... its time we should oppose and come to street. Only when they experience collateral damage in such situation, they will take back this new rule or any such rule for that matter...... Non violence is history, violence is the answer to this "latho ke booth batho se nahi mante govt".When they could not bring back the black money or loan amount, they started pulling our money to cover those losses......This govt is good but few minds in this govt are hopeless and fit for nothing kind. They know that common man cannot sit on strike for days together as he has to feed his family which is his first priority/responsibility and will leave the matter as it is thinking, some one will take a stand for his rights/money.What a coward/spineless finance leaders we have ...
                1. S
                  Apr 13, 2016 at 6:22 pm
                  this is Fu#ked up......Govt may have to repay during next elections. Only the educated ones are willing to support them and now the govt is cracking on their A##.
                  1. UVK
                    Apr 7, 2016 at 6:37 pm
                    Private and Government All employee
                    1. A
                      Anuj Raj
                      Jun 15, 2016 at 4:58 am
                      Hi,I want to inform you that limit of TDS on PF Withdrawal has been increased from 30,000 to 50,000 so please modify the limit.The full information is available on below link.Hope you my point ...Thanks
                      1. A
                        Ashwin Waghela
                        May 3, 2016 at 3:56 am
                        this is bullshift, how can govt decide when my money to be withdrawn.My money should be kept in PF like bank account and its up to me how much to withdraw or keep in account.
                        1. C
                          Apr 19, 2016 at 10:43 am
                          Dear Modi Ji or BJP government ,please think for the poor.Please do not play game to make your digital India. Digital India wont help lower cl people.So do the financial arrangement from higher cl.Not from PF deposit money to invest in your digital India.
                          1. D
                            Apr 19, 2016 at 1:23 pm
                            Pf Is our Money...we withdraw the money when we wishe...why government interfere in our money...government is ...
                            1. D
                              DIVYESH VYAS
                              Apr 16, 2016 at 10:30 am
                              1. P
                                Pankaj lohiya
                                Apr 7, 2016 at 10:14 am
                                I was in private job,i have resigned job last year,Now this month i have applied for PF withdrawal.It means i can not withdraw my full amount.My current age is 30 what will be scenario after my age 58 for my company,myself?where will i go for settlement.If company dissolves to whom i will contact??
                                1. J
                                  Apr 19, 2016 at 11:33 am
                                  Wow.... Now, Our government officials find a new way of corruption..... I don't blame our Indian Government i just blaming those who are creating such preposterous rules.
                                  1. Jibin Joseph
                                    Apr 8, 2016 at 9:36 am
                                    Can any body tell if we die before 58, the nominee will get the Full Money?
                                    1. Kiran Kumar
                                      Apr 15, 2016 at 5:53 am
                                      INDIA growing by my hard earned money, not because of MODI
                                      1. Kiran Kumar
                                        Apr 15, 2016 at 5:52 am
                                        lotere hai sab ke sab , lets see any bhakths of MODI now
                                        1. M
                                          mangesh yadav
                                          Apr 6, 2016 at 6:15 pm
                                          this should be applicable for government job... not for private company.
                                          1. M
                                            Mohan Ranga
                                            Apr 9, 2016 at 10:22 am
                                            It's our savings money...we should have every right to withdraw PF money when ever it's necessary.
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