What is employee provident fund scheme & How much money is deducted as PF ?

By Pavan Kumar


Employee Provident Fund is a retirement savings scheme that the government of India has mandated for all salaried employees. A minimum of 12% of the basic salary is deducted from your salary and deposited in the EPF account, which is maintained by the Employee Provident Fund Organization. All organizations in India that have more than 20 employees, as per law, is mandated to register with EPFO. In simple words, it is a savings platform provided by the government to help the employees build a corpus for post-retirement life.
While, the full 12% of the employee’s contribution goes into the PF account, only 3.67% of the employer’s contribution is directed to PF account, the remaining 8.33% is paid towards the Employee Pension Scheme (EPS).

Steps to Withdraw money from PF Account

As per the latest press notice by EPFO, EPF claims of 3 categories i.e. Full Withrawl via PF Final Settlement, PF Partial Withdrawal via loan/advance and Pension Withrawal Benefit through EPS withdrawal, can be made directly through employees UAN (Universal Account Number) portal by all members of EPF who have activated their UAN and linked their KYC or Aadhaar card number with the EPFO.

Let us take you through the procedure for EPF Withdrawal Online:

First of all you should have activated your Universal Account Number (UAN). You need to link the following with your UAN

i) Your mobile number, which is in working condition (should be the same as registered with your Aadhaar card)

ii) Bank Account details and the IFSC Code of the branch

Also, You should have linked your Aadhaar Card and PAN Card (in case of service of less than 5 years) on the EPFO website.

How to Withdraw EPF & EPS Balance online?

Step 1 is to log on to the UAN portal and enter your details.
Step 2 is to check whether the KYC details seeded are correct and verified or not.
Step 3 is to select the claim you require out of the 3 namely, full PF Settlement, PF Part withdrawal (loan / advance) or EPS withdrawal

Step 4 is to verify the online PF claim using One Time Password (OTP) that you will receive on your mobile number linked with your UAN. EPFO will obtain your KYC i.e. Aadhaar details from UIDAI and your online PF claim will be processed and your bank account will be credited with the amount of the claim.

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