The whole world is going through an unprecedented time today. It has been more than three months since the countrywide lockdown was implemented to slow down the spread of coronavirus. People around the globe have even termed this difficult time as the “new normal” but this new reality is drastically affecting every economical sector now. Taking this into consideration, the government of India has recently announced a revision in EPF rules regarding PF withdrawal.
Working people have had a sigh of relief as they learned that they can withdraw a certain amount from their PF account to fulfill their financial needs amid COVID-19 lockdown.
Needless to mention, the majority of employees have a number of questions/queries such as how to withdrawal pf online or how much amount can be withdrawn. This blog will surely give answers to all your questions. So, keep reading!!
Calculation For EPF Withdrawal
PF calculation is one of the common doubts among working people. Keeping that in mind, here is a simple example to make your whole calculation a little bit easier:
Consider a person who has a basic salary of Rs 40,000 & the PF balance Rs 4,00,000. In this situation, the total sum he/she can claim is:
3 months of basic salary, that is Rs 40,000 X 3
75% of the PF balance, that is 75% of Rs 4,00,000
Also, you should note that any EPF funds withdrawn during coronavirus and lockdown do not need to be refunded in the future. In simpler words, no person is bound to pay back the claimed PF money into his or her EPF account.
In addition, these new rules are not just designed to aid employees during COVID-19 but also to help them in any similar situation in the future.
Also Read: The Impact of COVID-19 And National Lockdown on Employment Laws
Eligibilities To Claim EPF Amount
If you wish to rely on your EPF to meet your requirements during this crisis time, then you should fulfill the following eligibility criteria:
- It is mandatory for EPF member to activate his or her UAN, i.e. Universal Account Number
- It is mandatory to verify as well as link one’s Aadhaar number with UAN
- It is mandatory to link one’s Bank account & IFSC with UAN.
Plus, EPFO has not asked to submit any documents to claim EPF money during coronavirus; so, it will be indeed hassle-free and convenient. The only thing a PF member should cross-check is the accuracy of his or her bank details as a minute error can lead to failure of PF credit.
Step by Step Instructions To Apply For Withdrawal
As mentioned earlier, most employees are searching “withdrawal pf online”. The whole application process for withdrawal is easy and hassle-free.
Here is a guide for you:
- First things first, you should go to the Member e-Sewa portal and log into your EPF account
- Click the Online Services section and choose the claim option
- You will be directed to a page that will show all your basic and personal details. After checking it, you should fill in the last 4 digits of your bank account and then hit on the verify button.
- Next, hit the ‘Proceed for online claim‘ button.
- Then, you should choose PF advance from the drop-down menu.
- Now, you should pick a purpose from the menu provided
- Fill in the amount you wish to withdraw along with your permanent address.
- You will receive an OTP on your mobile number that you should further use to complete this process.
We hope you got answers to all your questions. Also, while you have a golden opportunity to rely on your PF in such a critical situation, ensure that you make the right decision. The Provident Fund is one of the biggest savings for every working individual. So, consider it only when all other doors close to aid you.