Govt may Cap Premature PF Withdrawals at 75%

PF amount withdrawal is a profitable opportunity for Employees as the PF withdrawal amount includes Employees contribution, Employer’s contribution as well as interest accrued on last balance amount. And now a day, employees are withdrawing the entire PF amount immediately after 2 months of leaving the company job and also he/she has to show proof. But Govt. has been recently planning to restrict the premature PF withdrawal amount to 75% within age of 58 for various purposes such as Child marriage, own treatment as well as treatment of family members, education of child, etc.

For example: Suppose, your PF deposited amount within 20 months is INR 30000 including interest and Employer’s contribution, and you have left job and applied for PF withdrawal after 2 months, mentioning the reason that you have not found new job. Then you will be able to withdraw 75% of the balance amount in your PF account i.e. INR 22500.

When can be the remaining 25% PF amount withdrawn?

Remaining 25% PF amount, employees can withdraw after retirement or after age of 58 for fulfilling their requirement at the old age. As per updates from Labour Secretary, Mr. S. Aggarwal, they have got a proposal letter from EPFO department, regarding this change of 75% CAP or restriction on PF amount withdrawal. He has also assured that, he will take an appropriate decision within 10 to 12 days.

Benefits of 75% PF withdrawal amount

Central PF Commissioner Mr. Jalan has also informed about the same and told that the PF Scheme should be used as Old age Security scheme and not as a Saving Account scheme of bank. The PF withdrawal amount may be decreased further to 50% as per Mr. Jalan.

As per report from EPFO department, the average no. of annual claims for PF withdrawal is approx. 1 to 1.5 crore and around 60 to 70 Lakhs claims are for full withdrawal. After amendment of this new 75% withdrawal plan, the total no. of claims may be reduced to half of the current claim nos. annually i.e. around 40 to 50 Lakhs. Because the full amount withdrawal claims will be restricted.

With the help of 75% withdrawal amount, you can overcome your emergency situation and also can get financial support from the remaining 25% PF amount during old age.

How much PF amount an employer can contribute?

The contribution of Employer including interest should not exceed 75% of total contribution for PF account.

For example: If within 2 years, the latest balance in your PF account is INR 20000, then Employer’s contribution amount along with interest should not exceed more than 15000 within 2 years.

Advantages of withdrawal of entire PF amount after 58 years.

If you wish to keep your entire PF amount up to your retirement or till 58 years, then you can withdraw a bigger amount to use in a major requirement such as construction of House or small-scale business, etc.

Employees always worry to withdraw their entire PF amount after leaving the job or for any emergency circumstance. So their old aged or retirement period is not secured from the angle of financial support.

Case study: Mr. Raghav was doing job since the age of 24 for private companies SST Pvt. Ltd and after 3 years he has left the company and couldn’t get the job for next 2 to 4 months and applied for withdrawal of entire amount and got it. Then he joined with another new company and like this he has changed several companies within 58 years and now he is not able to go for job and staying in home as jobless person. His PF account is also empty and his family is suffering from critical financial issues.

Disadvantages of Withdrawal of Entire amount after 58 years

If you will keep you entire PF amount up to your retirement or till 58 years, then there are many chances of threats or loss in future.

  1. If you will be dead in any accidental instance before 58 years, then you may not enjoy your PF amount and your nominees will be enjoying the same.
  2. Sometimes, your greedy wife or adult children may try to kill you with accidental planning for getting the higher amount of PF amount.

Is there any chance of Fraud activities from Govt. Officers?

No. Not at all. The EPFO employees are working as per Govt. rules and regulation and they are working as Govt. employee. So they will process your PF claim as per your identity and employer’s approval. The process of PF verification is very strict and the amount will be transferred to your salary account in bank or savings account registered with PF Account during opening.

I am a Govt. employee and can I withdraw less than 75% during my emergency requirement?

Yes. No issue with this withdrawal amount as per your emergency requirement. Suppose, you have total balance in your PF account is 50000/- and your requirement is only 25000 for your child education and there is no restriction for this withdrawal amount. You will have a good PF amount during your retirement and you can enjoy your old age life with the balanced 50% PF amount.

Overall, Govt. of India has planned to make the PF Account scheme as retirement supporting scheme which will make employees more secure after requirement or end of job life.

Complaints: I became 58 years old and got retired but couldn’t get settlement of PF Account yet even after several time visit to nearest PF office.

Solution: I think, there is any misunderstanding between you and PF officials. Anyway, you can contact EPFO Head Office or Labour and Union Ministry Dept. for more clarity. I think your all issues will be cleared through these two departments.

Also, check TDS Deduction on PF Withdrawal..

Author: Sonia Sharma

I love to Travel by Road! Driving and Photography is my real passion. My hometown is Shimla and currently in Delhi. It is giving me immense pleasure to help lots of EPFO Members / Subscribers here at this site. My great regards to all!! Download #UAN e-Sewa Android App and get quick help..

33 thoughts on “Govt may Cap Premature PF Withdrawals at 75%

  1. LOKENDAR SINGH

    Name : LOKENDAR SINGH
    PF Number : MH/KND/94797/8779
    Mobile Number : 9761162745

    I would like to know my balance.

    Reply
    1. Anu Dey

      STATUS for Member ID: KD/MAL/0094797/000/0008779

      Your EPF balance has been sent through SMS on your specified mobile number. You shall receive the SMS shortly. UAN No is Mandatory Now! You should download this Android App EPF Balance UAN e-Sewa and get your UAN Registered.

      Reply
  2. MR Prasad

    hi, My ex Employer is pushing me to submit Form 15G alongwith the PF withdrawal forms saying its mandatory. I have been telling them that my income is beyond Tax permissible limits. Please help with the query here.

    Reply
    1. Sonia Sharma Post author

      You have to submit Form 15G otherwise TDS will be deducted on PF Withdrawal. Read More..

      Reply
  3. kalandi charan behera

    my name-kalandi charan behera/previous epf no-mh/ban/0125929/0000068
    i would like to know my widthdraw epf.
    all ready full nd final is completed in my previous company.
    one month is going to process.
    pl. kindly cheek and shortout my problem.

    Reply
    1. Anu Dey

      To withdraw your PF you have to Submit relevant claim forms duly attested by your ex-employer.

      Read the Form filling instructions here and here carefully.

      Reply
  4. Griffen Fernandes

    Please reply me the balance of the other PF account number.
    PY/BOM/0046832/000/16324
    So I can apply the withdrawl with my 1st prior employer too…
    And just to know for my knowledge can I withdraw a PF without the the employers consent and how do I do that… ???

    Reply
    1. Sonia Sharma Post author

      Please reply to your originally opened thread so that we can check our previous conversation and your mobile number to send balance. You are not allowed to open multiple threads and it is mentioned on query box. Is it really so hard to keep communication at one place or do you think we can remember all our communication with each member?

      Click on Check Box “Notify me of new comments via email” below query box and never miss any communication.

      Reply
  5. Lloyd Fernandes

    Name Lloyd Fernandes
    Mobile Number 889-800-5055
    PF Account number KN/46832/12392

    Reply
    1. Anu Dey

      STATUS for Member ID: PY/BOM/0046832/000/0012392

      Your EPF balance has been sent through SMS on your specified mobile number. You shall receive the SMS shortly.

      Reply
      1. Lloyd Fernandes

        Hi Anu,

        I have still not received the SMS
        Mobile number 8898005055

        Thank you
        Lloyd Fernandes

        Reply
        1. Sonia Sharma Post author

          Message sent again.

          Reply
  6. sanjay gaikwad

    My pf a/c no. is MH/37021/69. Applied after 2 months from resignation for withdrawl. But EPFO treating as inoperative a/c. Why ? The withdrawl claim yet unsettled. Sanjay gaikwad. Mob. No. 7875766319?

    Reply
    1. Sonia Sharma Post author

      STATUS for Member ID: MHBAN00370210000000069

      Hello! No records found in online database for your claim form submission. Where did you submit them? Do you have Acknowledgement Slip?

      Reply
  7. Griffen Fernandes

    Name : Griffen Fernandes
    PF Number : KN/46832/12400
    Mobile Number : 9819946316

    I would like to know my balance.

    Reply
    1. Sonia Sharma Post author

      STATUS for Member ID: PY/BOM/0046832/000/0012400

      Your EPF balance has been sent through SMS on your specified mobile number. You shall receive the SMS shortly.

      Reply
    2. Griffen Fernandes

      Griffen Fernandes
      9819946316
      PY/BOM/0046832/000/16324

      This PF Number is of a different employer..
      I would please like to know of the balance and it seems on my pay slip my
      PF Number just states – 16324
      Not the start PY/BOM/0046832/000 is not mentioned, I guess that’s common ?
      And also after I wanted to know once I apply to withdraw my PF how
      Many days does it take for the amount to be credited in my account ?

      Reply
      1. Sonia Sharma Post author

        PY/BOM/0046832/000/0012400 is new format of Old PF No KN/46832/12400

        It usually takes 30 business days after submission of claim forms to PF Office.

        Reply
        1. Griffen Fernandes

          Sorry for a different thread opened.. plz reply this one…
          Griffen Fernandes
          NAME – Griffen Fernandes. MOBILE – +919819946316.
          PF A/c Number – PYBOM00468320000012400
          CLAIM FROM 19 & FORM 10C IS RECEIVED GOT A TEXT MESSAGE TOO… BUT AMOUNT IS STILL NOT CREDITED.. when n how much will get credited…

          Reply
          1. Sonia Sharma Post author

            STATUS for Member ID: PYBOM00468320000012400

            Claim ID : PYBOM151100001839
            Status : CLAIM FORM 19 FOR PF SETTLEMENT FOR MEMBER ACCOUNT NO PYBOM00468320000012400 HAS BEEN RECEIVED ON 03.11.2015 IS UNDER PROCESS

            Claim ID : PYBOM151100001847
            Status : CLAIM FORM 10C FOR WITHDRAWAL BENEFIT/SCHEME CERTIFICATE FOR MEMBER ACCOUNT NO PYBOM00468320000012400 HAS BEEN RECEIVED ON 03.11.2015 IS UNDER PROCESS.

            Reply
  8. Sab

    If there is no contribution to PF account, it continues to earn interest till 36 months and then account becomes idle. So the 75% cap is applicable to idle accounts as well. That means 25% of the amount remains idle for years without any interest accumulated.. say 25 years or so?

    Reply
    1. Sonia Sharma Post author

      True

      Reply
  9. Sab

    How is the new proposal going to cater to the existing rule?
    I have left the job and is currently outside the country. Currently there is a rule if the PF account is inactive for more than 3 yrs , then interest will not be accrued.
    That means if I am not working in India anymore , at the age of 58, I will get the 25% without any interest accrued except for the initial 3 yrs.

    Reply
    1. Anu Dey

      You will get 100% at age of 58 but interest will be only of initial 3 years.

      Reply
  10. naresh katiya

    STATUS for Member ID: MHBAN00475730000004085
    Claim ID : MHBAN150700004765
    Status : Claim Form 10C for Withdrawal Benefit AGAINST Member Account No (MHBAN00475730000004085) has been rejected. Rejection letter is under dispatch
    Claim ID : MHBAN150700004763
    Status : Claim Form 19 for PF Settlement AGAINST Member Account No (MHBAN00475730000004085) has been rejected. Rejection letter is under dispatch
    Reason of rejection: The reason of rejection is not available in database. You may please contact RO/SRO BANDRAMUMBAI-I for further details
    what is the reason of rejection…….?? since the airline is shut down where should we claim our money.please guide, please help

    Reply
  11. sunny

    PF amount is employees property not government. How can anyone restrict withdrawal.
    Also what will happened if someone left job at age of 30 year and not taken any other job then how will govt identified weather this person live or dead and account is active or not ? lot of problem will arise with this new system.

    Reply
    1. Sonia Sharma Post author

      Good Point but EPF is retirement fund not savings account.

      Reply
      1. satya

        Ok if it retirement fund it should add interest to the 25% funds irrespective of idle or active, it is employee hard earn money , not some body’s or govt’s donated fund

        Reply
        1. Sonia Sharma Post author

          Retirement is for working people not for idles. So if you are working than only your PF is active and would earn interest. Idle people are already retired.

          By the way, this is not the right place to discuss this. You should file a public litigation interest case in High Court.

          Reply
  12. Naresh Manila Katiya

    Hello Ma’am,

    Kindly help me with my claim status.
    MH / 47573 / 4085 [Kingfisher Arlines]

    Claim submitted on 2/7/15
    Claim ID MHBAN150700004765 [form-10C]
    Claim ID MHBAN150700004763 [Form-19].
    It is still not showing any status in claim status site.

    Kindly help.

    Regards
    Naresh katiya

    Reply
    1. Sonia Sharma Post author

      It takes up to 7 working days to show online status and 30 working days to settle.

      Reply
      1. Naresh Manila Katiya

        Thank you so much ……. for your quick reply……appreciated…..

        Reply

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