Confused About PF Withdrawal Rules? Can You Really Access Employer Contributions Before Retirement?

Dear All Concerned Persons,

Greetings of the Day!

Please help me in clearing my doubt about PF withdrawal. As I read in the newspaper, an employee can withdraw his share with interest from the PF account, while the employer's contribution can only be withdrawn after attaining the retirement age. However, I have not yet received any legal notification regarding this matter. Kindly guide me on the subject.

Regards,
Mamta
Human Resource

Hi Mamtha,

All the notifications will not be shared with the employer. You are right, as you read in the newspaper, the employee will not be able to withdraw 100% of EE 7 ER contribution. He/She can withdraw only up to 90% of the employee contribution before 58 years; the balance amount shall be claimed only after the retirement age.

In February 2016, the EPFO issued a notification stating:

EPFO Notification on Provident Fund Withdrawal

The Central Board, or an authorized representative, may allow a member to withdraw from their provident fund account. This withdrawal can include the member's total contribution and interest up to the authorization date, upon ceasing employment in any establishment covered by the Act.

(2) The member applying for withdrawal must not be employed in any factory or establishment covered by the Act for at least two months before the application date.

However, the two-month requirement does not apply to female members resigning due to marriage, pregnancy, or childbirth.

Therefore, only the employee's contribution with interest can be withdrawn, while the employer's contribution can only be withdrawn after reaching 58 years of age. This amendment is against the employee's interest.

Regards,
Somesh.L
[Phone Number Removed For Privacy Reasons]