EPFO is a retirement benefits scheme for salaried employees in India. A saving tool that helps Indian workers after retirement or two months after switching jobs. In this post article, you will learn about What is EPFO full form & Its Claim Process?—Withdrawal & Eligibility Criteria
If you are also interested in the EPFO scheme, its benefits, its claim process, and withdrawal procedure, you should read this article to the end.
EPFO, with the full name of Employment Provident Fund Organization, is a body of savings scheme for salaried employees managed by the Employees’ Provident Fund and Miscellaneous provision act, 1952.
The Employees Provident Fund Organizations (EPFO) handle this entire process. In this scheme, employees pay a portion of their income to the EPFO.
The employers also contribute the same amount to EPFO. After retirement or two months after unemployment, employees get the total amount (His own and Employers contribution) with interest discussed below.
Let us see What is EPFO full form & Its Claim Process?—Withdrawal & Eligibility Criteria in detail!
Table of Contents
What is the EPF scheme?
Do you know what an EPF scheme is and how it works for employees? If not, read this section to the end.
EPF is a scheme to fund retired employees. In this scheme, you and your employer contribute a small percentage of your monthly income.
When you contribute your income for a very long time, it becomes a considerable amount till retirement. However, you, as an employee, can withdraw your EPF funds partially before retirement under exceptional cases.
Let us know how the EPF fund works. If you are working in an organization with more than 20 employees, you can register yourself for EPFO under the EPF act, 1952.
After that, you and your employer have to contribute 12% of your basic pay to EPFO funds. Your 3.67% contribution, along with your employers’ contribution, will go to your EPF account. The remaining 8.33% will go to the Employees’ pension scheme.
The government pools your contributions, invests them in different schemes, and generates interest in the money to pay pensions to employees and retirement funds.
What is EPFO?
Employment Provident Funds Organization (EPFO) is basically a social security organization that supervises and regulates the provident and pension funds in India.
It assists the Central board in the administration of provident funds, insurances, and pensions. This organization also works on signing bilateral contracts with other countries.
You can also apply for EPF if you are an international employee working in a country that has signed a bilateral agreement.
The EPFO Eligibility Criteria
If you think that every Indian employee is eligible for the EPF funds, you are probably wrong. Let us see the eligibility criteria for the EPF scheme.
If you are a salaried employee and your basic salary + Dearness-allowance is less than RS. 15,000/month, you are eligible for opening an EPF account. You must consider several other formalities.
First, your organization should have 20 or more employees. Secondly, your firm should register in the EPF scheme. If your company doesn’t register for EPF, the contribution rate for both employees and employers becomes limited to 10%.
You are not eligible If your salary is Rs.15000/month or more. However, you can still apply after approval from your employer and the PF commissioner.
EPF Withdrawal Procedure—Claim Your EPF Funds
Do you want to know how to claim your EPF funds and the EPF withdrawal procedure?
You can withdraw EPF funds entirely or partially. If you claim funds after retirement or two months after unemployment, you will receive a complete withdrawal.
However, you can partially withdraw EPF funds under circumstances such as medical expenses, marriage loans, home loan repayment, etc.
Let us see the withdrawal procedure for EPF funds now!
EPF claim Or Withdrawal Procedure
You can easily withdraw your funds through your UAN by visiting the EPFO portal. However, you should ensure that your UAN is activated and connected with your KYC (Such as Udhaar, PAN, and other bank details). If your UAN is not activated, you cannot claim your EPF funds. Therefore, you should activate your UAN first and then follow the procedure below!
Step 1: Log in to Your UAN Portal:
Go to the EPFO e-Sewa portal and Sign-in with your UAN number and password. In case you forgot the password—it is not a big issue. Click on the ‘Forgot Password’ button below the login panel. You will receive a One-time Password (OTP) to your registered mobile number.
Step 2: Go to Claim Section:
When you are done logging in to your portal, it is time to visit the ‘Claim Section’ to claim your EPF funds. For this purpose, click the ‘Online Services’ tab in the top menu bar. After this, select ‘Claim’ in the drop-down menu shown.
Step 3: Verify the Bank Details:
You will have to enter your bank account number for the verification process in the claim section. Enter your bank account number and click ‘Verify.’
Step 4: Confirm Terms and Conditions:
After bank verification, the portal will demand you confirm the company’s terms and conditions. To proceed further, click on ‘Proceed for Online Claim.’
Step 5: Select Reason for Withdrawal:
After clicking terms and conditions, you will see a drop-down menu on the screen. Here, you will see all the possible reasons for which you can withdraw funds. Select the reason for withdrawal from the menu bar.
After selecting the withdrawal reason, you have to enter your complete address. You should also upload your full checkbook details if you want ‘Advance claim.’ Sometimes, you might need to upload scanned documents to verify the purpose of filling the application. After putting all the details, you should accept ‘Terms and conditions and submit your application.
Step 6: Advanced Verification:
Once you have successfully applied, you should request an OTP. They will send OTP to your mobile number attached to the Udhaar card. Check the OTP on your phone number, enter it on the portal, and you are done with your claim process.
Now, you should wait for verification from the EPFO side. They will match your given data with the recorded data for further proof. Once the information is verified, they will transfer the funds to your bank account connected with UAN.
If you are interested in EPF or want to know the claim procedure to withdraw EPF funds, you should go above and read this guide thoroughly.
Here, we have discussed the working of EPF funds, Eligibility criteria for the EPF scheme, and the procedure to withdraw EPF funds for your help.
That is all from today’s tutorial. If you still have queries related to EPF, feel free to contact us for any help!