PF Withdrawal Rule Change: EPF Updates You Should Know; How To Apply

The Employees Provident Fund Organisation (EPFO) has made various announcements in the recent times to make EPF withdrawal possible from one's Provident Fund (PF) balance. These recent EPFO updates include second Covid-19 advance to non-refundable advance from the EPF account. These updates in regard to PF withdrawal can be an avenue for fund raiser, in case, the EPF account holder comes across any kind of financial crisis.

Recently, EPFO allowed the subscribers to withdraw money from their Provident Fund (PF) accounts as non-refundable advance. This has come in the wake of Covid-19 pandemic. Now, EPFO members can withdraw money from their accounts, citing coronavirus as a reason.

The new rule EPFO members must know:

An EPF account holder who has availed Covid advance in first wave is now eligible for second Covid advance from one's PF account. The account holder can withdraw up to 75 per cent of the EPF balance or 3-months basic wages plus Dearness Allowance (DA).

An EPFO member is eligible for Covid advance from one's EPF account even after leaving his or her job provided full and final PF withdrawal hasn't been claimed.

If the person is out of job for one month or more, he can withdraw up to 75 per cent of their PF balance. This facility has been given to the EPF account holder without closing their PF account enabling the EPFO member to continue pension benefit under EPFO pension rules.

The EPFO has raised the maximum insurance benefit under EDLI scheme from Rs 6 lakh to Rs 7 lakh. Now, if an EPF account holder dies during the services, then its nominee or legal heir (whichever applicable) will be eligible for insurance benefit up to Rs 7 lakh. However, the minimum threshold has been left unchanged at Rs 2.5 lakh.

The EPFO has made it mandatory for the EPF and PF account holders to link their respective EPF account with Aadhaar card. In case of non-linking of Aadhaar-EPF account, employers won't be able to contribute in such EPF accounts as EPFO won't allow employers to file ECR (Electronic Challan-cum Return) for such EPF accounts. Earlier the deadline for Aadhaar EPF link was 31st May 2021, which has been now extended to 1st September 2021.

Here's how to apply:

• Login to your EPFO account using your UAN and password.
• Click on the tab ‘Online Services’
• Select ‘Claim (Form-31, 19 & 10C)’ option from the drop-down menu.
• A screen will open displaying members details, PAN card, Aadhaar card and bank account number. You will be asked to enter the last four digits of your bank account and click on 1‘Verify’.
• Then, click on ‘Proceed Claim Online’.
• Then you have to select ‘PF Advance (Form 31)’ to withdraw your funds online. In the claim form, you must state the reason for taking an advance under the ‘Purpose for which advance is required’. This option will only be shown to those who are eligible for partial withdrawal. Individuals need to select COVID-19 as a reason for the partial withdrawal.
• After selecting the reason, you need to enter the amount required and the complete address. Then, EPF subscribers will be asked to upload the cheque or account details. After completing all the necessary details, you have to submit your application.
• Once you have confirmed all the details, you have to request for an OTP, which will be sent to the mobile number linked with your EPFO account. After you enter the OTP, you claim application will be submitted.
• Your employer has to approve your withdrawal request after which the money will be withdrawn from your EPF account and transferred to the bank account.