If you have an active Employees' Provident Fund (EPF) account, you and your employer contribute a specific amount to your EPF account. It is one of the financial tools that help accumulate a sufficient corpus for one's post-retirement years.
After retirement, the employee can withdraw the entire sum, or he/she can make premature withdrawals from the EPF account after meeting certain conditions before retirement. So, if you are wondering how to withdraw pension contributions in EPF, read this article.
Employee Pension Scheme (EPS) came into effect in 1995 under the Employees’ Provident Fund Organisation (EPFO) for the convenience of employees working under companies and organisations. Employees who come under this scheme are entitled to an employee pension scheme.
You and your employer will contribute 12% each to the EPF account. Out of the employer's 12% contribution, 8.33% (up to a limit of Rs.15,000) will go to the EPS, while the remaining amount will go to the EPF. EPF is mandatory for all individuals with a monthly income below Rs.15,000.
As per the EPF Act, any individual who retires after completing his/her service can get the pension amount by following proper procedure. However, one must meet the criteria or conditions listed below to withdraw the EPFO pension:
Here is the list of documents you will need to withdraw the pension contribution:
To withdraw the pension portion of your EPF account, you need to meet one of the following criteria:
There are certain limitations if you want to take money out of your EPF account before your retirement. You have the eligibility to withdraw contributions from EPF in certain situations:
Condition When You Can Withdraw EPF | EPF Limit for Withdrawal |
Wedding Ceremony | 50% of the total EPF contribution to date |
Medical Emergency | It can be 6 times your present monthly salary or the entire corpus, whichever is less |
Home Renovation | 12 times your current salary |
Repayment of Home Loan | Not more than 90% of your EPF contribution |
Unemployment | In such a scenario- 25% of the EPF contribution after 2 months of unemployment, and 75% of the EPF contribution after 1 month of unemployment |
Retirement | Total amount |
You can withdraw EPS through both online and offline modes.
It does not involve any complicated procedure. However, for the online process, it is mandatory to link your Aadhaar with your UAN.
Step 1: Visit the Unified Member Sewa portal. Log in with your UAN and password.
Step 2: Go to ‘Online Services’ and click on ‘Claim (Form-31, 19, 10C & 10D)’.
Step 3: Confirm your member and KYC details. Enter your bank account number and click ‘Verify’.
Step 4: Select the claim type as ‘Withdraw Pension Only’.
Step 5: Under ‘I want to apply for’, select ‘Only Pension Withdrawal (Form 10C)’.
Step 6: Enter your permanent address, tick the disclaimer, and click ‘Get Aadhaar OTP’.
Step 7: Enter the OTP sent to your Aadhaar-linked mobile, validate, and click ‘Submit Claim Form’.
Step 8: You will get an SMS confirmation. The EPS amount will be credited to your savings account after claim approval.
An SMS notification will be sent to the registered mobile after successfully submitting Form 10C. The pension claim will be submitted with Form 10C, and the EPS pension amount gets transferred to the savings bank account.
Step 1: Download the composite claim form (Aadhaar or non-Aadhaar version) from the EPFO website.
Step 2: If using the Aadhaar-based form, make sure your Aadhaar and bank account are linked.
Step 3: Fill out the form with accurate bank details and personal info.
Step 4: Submit the completed form to your jurisdictional EPF office for processing.
Here are the key withdrawal rules for the pension (EPS) part of your EPF:
EPF is an excellent option to save money for the future. Additionally, you can save taxes on the interest you earn with this scheme.