How To Withdraw Pension Contribution In EPF Online?

How To Withdraw Pension Contribution In EPF Online?

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Rashmi
Rashmi Karan
Manager - Content
Updated on Feb 21, 2024 17:55 IST

The process of withdrawing pension contributions from the Employees’ Provident Fund (EPF) has been streamlined to offer a user-friendly online option. You can now access your accumulated pension funds online more efficiently as an employee. This blog will guide you on how to withdraw pension contribution in EPF online. 

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What is EPF?

Employees’ Provident Fund or EPF is a social security scheme in India managed and regulated by the Employees’ Provident Fund Organisation (EPFO), a statutory body under the Ministry of Labour and Employment, Government of India. The EPF scheme is designed to provide financial security and retirement benefits to employees working in the organized sector. 

Employees and employers contribute a fixed percentage of the employee’s salary in the EPF. The EPF account also includes a pension component (EPS) funded by the employer.

What is EPS?

The Employee Pension Scheme (EPS) is a social security scheme introduced by India’s Employees’ Provident Fund Organisation (EPFO). It is a component of the EPF scheme. EPS makes employees eligible for a pension after retirement at the age of 58.

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When Can You Withdraw Your Pension Contribution from EPF?

As per the EPF Act, any individual who retires after completing their service can get the pension amount by following proper procedure. Below are the mandatory requirements or conditions to withdraw the EPFO pension:

Condition Provision Under EPF
Retirement If you defer pension withdrawal until 60 years, you benefit from an extra interest rate of 4% in a financial year.
Resignation Employees can withdraw their EPF and pension contributions if they remain unemployed for 2 months after resigning.
Termination Employees terminated from their jobs can withdraw EPF and pension after 2 months of unemployment.
Wedding Expenses Partial withdrawals (50% of the total EPF contributed to date) allowed for marriage-related expenses of self/children/siblings.
Permanent Migration Abroad If you are an Indian citizen but have migrated abroad permanently, you may be eligible to withdraw your pension contribution. However, certain conditions and documentation might be required to prove your permanent migration status.
Home Renovation Partial withdrawals (12 times the current monthly salary) can renovate an existing home.
Home Loan Repayment The employee can withdraw up to 90% of the EPF contribution
Permanent Disability Employees with permanent disabilities can withdraw their full EPF and pension balance.
Migration Abroad Employees migrating abroad for permanent settlement can withdraw their full EPF balance irrespective of employment status.
Close of Business Employees can withdraw their full EPF and pension balance if a company is closed or winding up.
Inoperative Account Accounts that are inactive for a certain period (typically 3 years) can be withdrawn.
Serious illness Certified by a medical authority, employees suffering from a serious illness can withdraw their pension contribution. They must have completed at least 5 years of service.
Death of the employee The nominee of the deceased employee can withdraw the entire pension contribution.

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How To Withdraw Pension Contribution In EPF?

There are two cases under which an EPF account holder can withdraw the Pension. 

EPF Form 10C

  • Form 10C is a withdrawal form to claim the pension amount accumulated in the employee’s EPS balance under the Employee Pension Scheme (EPS).
  • In the case of an unemployed employee for more than two months, the full and final settlement is done by withdrawing the full EPF balance by filling out Form 19 for withdrawing the EPF balance and then Form 10c for withdrawing the pension share balance.
  • The pension amount is withdrawable only if the employee’s service period is less than 10 years.
  • Form 10C can be used to transfer your EPS balance from one employer to another.

EPF Form 10D

  • With Form 10D, you can claim a monthly pension after the employee’s retirement.
  • Employees must complete 10 years of service to claim under this form.
  • The criteria to get a monthly pension is that the employee is 58.
  • The maximum pension an employee can get under EPS is Rs. 7,500 per month, and the minimum is Rs. 1,000 per month.
  • In case of an employee’s death after retirement, their spouse or nominee will receive the monthly pension.
  • If an employee becomes disabled permanently due to illness or accident, they can receive a monthly pension regardless of serving the minimum pension serviceable period.
  • To be eligible for the pension, she/his employer has to contribute an EPS share under the EPS scheme for at least one month.

Step-by-Step Process to Withdraw Pension Contribution In EPF

  • Go to the official website of EPF (https://www.epfindia.gov.in/). 
  • Go to Services and select Employees.
Step-by-Step Process to Withdraw Pension Contribution In EPF
  • Enter your UAN and password.
Step-by-Step Process to Withdraw Pension Contribution In EPF 2

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Step-by-Step Process to Withdraw Pension Contribution In EPF 3
  • Locate a tab stating ‘Online Services.’ Click on CLAIM (FORM-31,19, 10C or 10D) from the menu
Step-by-Step Process to Withdraw Pension Contribution In EPF 3
  • You will be prompted to enter the bank account number and sign the undertaking. Do as suggested.
Step-by-Step Process to Withdraw Pension Contribution In EPF 5
  • Select the claim form type – PF withdrawal/PFA advance/Pension withdrawal. Check the mark ‘I want to apply for’ and select the right option for pension withdrawal.
Step-by-Step Process to Withdraw Pension Contribution In EPF 6
Step-by-Step Process to Withdraw Pension Contribution In EPF 7
  • Choose the reasons for withdrawing the EPF amount.
Step-by-Step Process to Withdraw Pension Contribution In EPF 8
  • Fill in the required details and upload the scanned copy of your cheque/passbook..
  • Click on ‘Get Aadhaar OTP.’ You will get an OTP on your Aadhar-linked mobile number. 
  • Enter the OTP, click ‘Validate OTP’, and then the ‘Submit Claim Form’. 
  • Submit the form and monitor the request status online.
  • After approval, the EPS funds will be directly deposited into your bank account.

Conclusion

Please note that pension withdrawal rules and eligibility criteria can change over time, per the Employees’ Provident Fund Organization (EPFO) regulations and government policies. We recommend you check the official EPFO website or consult the HR department to ensure accurate and up-to-date information. Additionally, when you withdraw your pension contribution, you must follow the prescribed process, fill out the required forms, and provide the necessary documents to initiate the withdrawal request.

FAQs

How is the pension amount calculated under EPS?

The pension amount is calculated based on the average monthly salary during the last 12 months of an employee's service and the number of years of service. The calculation formula varies depending on the employee's joining date.

Can I withdraw my pension contributions before retirement?

Suppose you have not completed the minimum vesting period of 10 years. In that case, you can withdraw your pension contributions, EPF contributions, and interest earned, but your pension benefits will be forfeited.

What is the minimum and maximum pension amount under EPS?

The government determines the minimum and maximum pension amounts. Your actual pension amount will depend on your average salary, years of service, and pension formula.

Can I transfer my EPS contributions to a new employer?

You can transfer your EPS contributions to a new employer's EPF account. This ensures the continuity of your pension benefits and service history.

What happens to my EPS contributions if I change jobs frequently?

If you change jobs frequently, your EPS contributions accumulate separately for each employer. However, if you have less than 10 years of service with any one employer, you might not be eligible for pension benefits.

How can I track the status of my EPS pension claim?

You can track the status of your EPS pension claim through the official EPF portal using your Universal Account Number (UAN) and password. The portal provides updates on the progress of your claim.

About the Author
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Rashmi Karan
Manager - Content

Rashmi is a postgraduate in Biotechnology with a flair for research-oriented work and has an experience of over 13 years in content creation and social media handling. She has a diversified writing portfolio and aim... Read Full Bio

Comments

(1)

hi could help me with below 2 points as per you table how as per EPF Act is below applicable? Migration Abroad Employees migrating abroad for employment can withdraw their EPF and pension after 3 years of unemployment. Close of Business Employees can withdraw their full EPF and pension balance if a

Reply to Anand Sachania

R

Rashmi KaranManager - Content

I have corrected the migration abroad bit. thanks for pointing. Here is the clarifications - Migration Abroad: Employees migrating abroad for permanent settlement can withdraw their full EPF balance irrespective of employment status. Close of Business: Conditions for withdrawal under the EPF Act:

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