Can Employees Withdraw Full PF Share Before Retirement Age? Seeking Clarity from HR Experts

Dear HR leaders and Seniors,

As per current PF claim rules, may an employee withdraw the Employee share (12%), Employer share (3.67% (PF) + 8.33% (Pension)), and interest before the employee attains retirement age?

Please clarify.

Thanks with Regards, Thirumurugan

Depending on the service timespan, if the total service span is below 9 years, then he can. But if the timespan exceeds 9 years, he will get 12% + 3.67% interest. For 8.33%, he will receive a PPO certificate, against which he will get a pension after attaining the age of 58+.

EPF and EPS Withdrawal Guidelines

Employees can withdraw EPF and EPS provided they are not in employment or covered under EPF for 60 days from the date of leaving service. Please note that interest is not credited periodically but on a pro-rata basis. The annual interest for 2016-17 will be credited in April 2017. Employees opting for withdrawal in between the financial year will only receive interest credit for the previous financial year. Automatic withdrawal under EPS without due consideration is not recommended. It is advisable to opt for a "Scheme Certificate" and avail of the benefits provided therein. EPF is a retirement fund, not a crisis fund.