Provident Fund: Definition, Benefits, and How to Withdraw PF Online

Provident Fund

What is a Provident Fund?

One retirement benefit program is known as the Provident Fund.

In simple terms, a fund manager invests the money in the market using monthly contributions from both employers and employees. Once an employee retires, the fund manager pays them a retiree allowance that consists of their principal plus investment income.

A provident fund is a fund set up by an employer and its workers for those who choose to voluntarily contribute. It provides money in the case that an employee leaves the company, retires, becomes ill, passes away, etc. The Provident Fund Act, which guarantees the rights of Provident Fund employees, serves as the basis for Provident Fund regulations administered by the government.

If you think about the Provident Fund (retirement allowance fund) as a savings system for retirement allowances, it’s simple to understand.

Workers pay a 2-15% salary deposit to the fund management business; the company matches the employee’s payment to the management company at the same or greater rate.

After retirement, the worker is entitled to take out all of their savings as well as the fund’s investment gains. (A primary loss is a possibility.)

Companies have a set rise at which they can withdraw collected shares. The amount of years of employment at the time of retirement often determines the premium rate.

How to withdraw PF amount online?

As we all are aware what is PF? The Employee Provident Fund Organization’s (EPFO) attempts at digitization and advanced technology have made it easier to access your Provident Fund (PF) sum online or digitally in current years. As technology becomes smarter and faster in every sector around India and worldwide.

Many employees and citizens are unaware of how to achieve their PF amount and for some people, it is very difficult to find out, as they don’t have enough knowledge but introducing it online makes it a lot more convenient and reliable for employers and workers. This is a complete guide in steps that will show you how to withdraw and take your PF amount out online easily:

Verification of Eligibility

As it is obvious the verification and eligibility check is very crucial when it comes to withdrawing Pf. This step is taken to ensure safety and the individual’s identity. Applicants must be sure they fulfill the requirements and needs for eligibility criteria established and given by the EPFO before starting the withdrawal procedure digitally. In general, employees must have served and worked for an organization or company continuously for a maximum of 5 years. Yet, there are allowances for some particular scenarios and circumstances, such as urgent medical/health care or unemployment.

Activate your Universal Account Number (UAN)

A unique and separate identifying number for all citizens and employers in the country known as the UAN is given to every single employee in an organization who makes an EPF contribution and scheme. If you haven’t activated your UAN till now then you must activate your UAN to achieve PF withdrawals.. You may do this very easily and conveniently by visiting the EPFO portal and following the activation procedures, which are simple and recognizable to do even a beginner can perform the steps without any hassle.

Link UAN to your Aadhaar

Connecting and linking your UAN to your Aadhaar card is very essential to get eligible to receive PF sum. This step guarantees and assists a smooth, easy, reliable withdrawal procedure and is essential for verification as well as authentication.

Details of the bank account and KYC

Employers must ensure their UAN is up-to-date, along with validating all bank account and KYC documents. To make and get withdrawals online, this is a must and required for every employer.

Enter the EPFO Portal login information

Applicants must enter their UAN and password to log in to the EPFO member portal which is as follows This is an important step users can’t skip it.

Choose the Claim Option

To claim your PF amount it is obvious users have to visit the claim option and click the ‘Online Services’ option after logging into the portal, then choose ‘Claim (Form-31, 19 & 10C)’ from the features and menu given on the homepage.

Check Personal Information

Employees should ensure they check their personal data twice on the screen to avoid mistakes and delays. Make sure that the information you have given successfully matches your UAN.

Select and pick your preferred Withdrawal Type

Choose the kind of withdrawal you prefer according to your comfort or knowledge and proceed by performing it:

  • PF Advance (Form 31): To withdraw a portion or whole amount of your PF sum for various reasons and uses, such as urgent medical, living expenses, housing, any occasion, marriage, migrating, education, and many more.
  • Final PF Settlement (Form 19): To withdraw the needed amount of PF balance following retirement and job or employment quitting. It is based on the workers’s needs and preferences.
  • Pension Withdrawal Benefit (Form 10C): It is beneficial to take and withdraw the pension money out of the financial plan or system.

Complete the Required Fields and Details

Depending on the type and kind of employer’s withdrawal of the PF amount they have chosen, fill in the necessary details and personal information. To prevent any hassle, delays, or cancelation and rejection of your PF withdrawal, it can be possible for employees to provide any information wrong even a single one, that’s why provide the precise and correct information to receive your PF fast and without any difficulties.

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