PF Withdrawal is now Easier for Employees to Benefit
Recently, EPFO allowed its subscribers to file their PF withdrawal applications directly to the retirement fund body without employers’ attestation thereby easing the process of PF withdrawal by employees.
Facts about new process of PF Withdrawal:
1. The Universal Account Number (UAN) facility was launched last year to facilitate PF transfers while subscribers change jobs. And all active subscribers have been allotted a number viz. UAN.
2. This facility is applicable for subscribers, if details such as Aadhaar, PAN and bank account are linked to their Universal Account Number (UAN) and their know-your-customer (KYC) verification done by their employers.
More than 2 crore subscribers have verified KYC norms with the employers and can avail this new withdrawal facility.
3. What is the change in process?
Under the earlier process, after leaving a job, employees were supposed to get their withdrawal forms attested through their employers for identification of their details. This attestation of documents by the previous employer has been done away with.
Subscribers filing their claims directly without employers’ attestation would have to use new forms that have been simplified for the new process.
The easier withdrawal facility will help subscribers who find it difficult to contact their previous employers.
4. What are the other points to be kept in mind for withdrawal from PF
Withdrawal claims have to be manually submitted by subscribers directly to the provident fund office. (Eventually, the EFPO plans to make the withdrawal process online to make it more subscriber-friendly)
The earlier norm of a waiting period of two months after leaving the previous job still applies for withdrawal purpose.
Subscribers who wish to take an advance from PF account can make partial withdrawal through the submission of Form-31. EPFO allows subscribers to take an advance in certain situations like house construction, repayment of housing loan and education of children and illness.
Note: In another important change recently, The Employees’ Provident Fund Organisation (EPFO) has removed the grace period of five days given to employers to deposit the provident fund (PF) contribution. Therefore, the employers have to pay the contribution within 15 days of end of every month.