Confused About New PF Withdrawal Rules? Can I Access My Funds Before 58?

Latest Amendments in the EPF Scheme

1. Full EPF amount cannot be withdrawn by the member before attaining the retirement age, i.e., 58 years.

New Rule
Under para 68 NNNN, EPF members cannot withdraw the full PF amount (both shares) before reaching the age of 58 years. An outgoing employee can withdraw only their contributions plus interest. The employer's portion (i.e., 3.67%) can be withdrawn after attaining the retirement age of 58 years, as it is retained with EPFO for the continuity of EPF membership.

2. There is an increase in the age limit, i.e., from 54 to 57, for the withdrawal of 90% of the PF amount under para 68 NN.

However, the Chennai EPFO has issued a circular to stop sending Form 10 & 19 for withdrawal.

My question is: As per rule (1), can I still withdraw my contribution and interest upon the cessation of my employment? Then, why is there rule 2?

HR professionals, please advise. Can I withdraw my PF now? And how? Is there any age barrier or lock-in period for this?

Please respond with citations.

Regards, NB

How can Chennai EPFO disallow withdrawals, especially when Rule (1) permits the withdrawal of my contribution? How do I take this up with Chennai EPFO to allow me withdrawal? If I don't withdraw, will they give me interest until I turn 57? I am in serious need of withdrawal. PLS HELP WITH RIGHT ADVICE.

PF Withdrawal Rules and Procedures

As per the notification issued on 10-02-2016, PF withdrawal is not allowed until retirement age. To withdraw a member's contribution, the member must apply under para 68NNNN. Fill out Form 31 and indicate "withdrawal after cessation," to be submitted two months after resignation, if not reemployed where the PF Act applies.

The membership of the member will continue, and interest will be accrued until retirement. The account will become inactive after 3 years. Even the inactive account will earn interest from 01-04-2016 onwards.

Only for retirement purposes, Forms 19 and 10C/10D will be provided.

Thanks,

Bhat

Whether interest credited to Unclaimed PF accounts and if the interest credited amount is more than Rs. 5,000/-; whether TDS is required to be deducted or not under Section 194C of the Income-tax Act. I request clarification on this matter from our esteemed panel members.

Even I got this kind of mail from my employer. My last date was 14th Jan. Now I have immigrated permanently outside India. Does this rule apply in this scenario too? If not, can I take a loan on employee contributions once I withdraw my contribution?

Hi Aastha,

I don't have an attachment in this regard, but we received internal communication from HR citing a notification by Chennai EPFO. I am unable to share the internal communication, but I believe the same information is available on the EPFO Chennai site or portal if it helps you. Please let me know if you gather more information in this regard.

Thank you.

Dear Mr. Bhat,

Thank you for your valued insight. If I may, please allow me to inquire again:

1) Can I withdraw my contribution (and its accrued interest) 2 months after my unemployment? If so, should I still send it to my ex-employer for the necessary steps by submitting the forms you mentioned? Why would EPFO Chennai refuse to send the forms in that scenario?

I apologize for the repetitive nature of my question; I would appreciate further elaboration on this matter.

Thank you.

Dear Mr. Bhat,

Thank you for your valued insight. If I may, please allow me to inquire again:

1) Can I withdraw my contribution (and its accrued interest) 2 months after my unemployment? If so, should I still send it to my ex-employer for the necessary processing by sending across the forms as mentioned by you? Why would EPFO Chennai deny sending forms in that scenario?

At the risk of repetition, I kindly request further clarification.

Thank you.

EPFO Circular Update on PF Contributions

Please note that the EPFO has issued a circular, and the date of implementation for the circular dated 10.02.2016 has been extended to 1st May 2016. Therefore, the entire PF contributions (i.e., Employees' as well as Employers') can be settled for resigned employees.

However, after 1st May 2016, only the Employees' PF Contribution shall be settled, and the Employers' PF contribution will be settled upon attaining the age of 58 years. Those who have resigned up to now can take advantage of the extension granted by the EPFO and get their entire PF balance settled.

Dear Nirav,

As per the recent circular sent by the PF office, the RPFC Pune has relaxed the settlement deadline up to 30/04/2016 with permission from the competent authority.

The unemployment period should be two months before the application. If you are employed while applying, you cannot withdraw.

Thanks,
Bhat

My core question is: Using what forms do I withdraw at least my employee contribution after May 1st? I'm based in Gujarat, and my EPFO is in Chennai.