Leaving a job often sparks financial concerns, and accessing your Employee Provident Fund (EPF) might seem like a tempting solution. However, navigating the EPF withdrawal process can be confusing, especially regarding your pension contribution. This article outlines the options and steps involved in withdrawing your pension contribution after leaving your job, empowering you to make informed decisions.
Eligibility to Withdraw Pension Contribution from EPF
Before proceeding, ensure you understand the eligibility criteria for withdrawing your pension contribution:
- Employment Period: You must have completed less than 10 years of service.
- Unemployment Duration: You must be unemployed for more than two months after your last working day.
- Emigration: You can withdraw if permanently migrating abroad with an emigration certificate.
Document Required to Withdraw Pension Contribution from EPF
- UAN and Password: Your Universal Account Number (UAN) and password for online access.
- Aadhaar Card: Linked to your UAN for online withdrawal (mandatory).
- Bank Details: Linked to your UAN for seamless fund transfer.
- Form 19 & 10C (Offline): Downloadable from the EPFO website for offline withdrawal.
- Canceled Cheque/Bank Statement (Offline): Proof of your bank account details.
Two Ways to Withdrawal Pension Contribution from EPF After Leaving the Job
I. Online Withdrawal
- Visit the Unified Member Sewa Portal: Access the portal through the official EPFO website (https://unifiedportal-mem.epfindia.gov.in/memberinterface/).
- Log in: Use your UAN and password to log in.
- Select “Online Services”: From the menu bar, click on “Online Services” and choose “Claim (Form-31, 19 & 10C)“.
- Verify Details: Confirm your member details and verify your bank account.
- Choose Claim Type: Select “Withdraw Pension Only” and then “Only Pension Withdrawal (Form 10C)“.
- Fill Form 10C: Enter your permanent address and acknowledge the disclaimer.
- Submit Claim: Get and validate the Aadhaar OTP sent to your linked mobile number. Submit the claim form.
- Track Status: Monitor the claim status by logging in and clicking “Track Claim Status“.
II. Offline Withdrawal
- Download Forms: Download and fill out Form 19 (PF Settlement) and Form 10C (Pension Withdrawal) from the EPFO website.
- Attach Documents: Include a cancelled cheque or bank statement copy with the forms.
- Visit EPFO Office: Submit the completed forms and documents to your nearest EPFO office.
- Claim Status: You will receive a notification or SMS regarding your claim status.
Important Notes
- Processing times for claims can vary. Be patient and track the status regularly.
- Withdrawing your pension contribution before retirement might affect your future pension benefits. Consider this carefully.
- Online withdrawal requires your Aadhaar card linked to your UAN.
- Ensure your bank details are accurate and linked to your UAN for smooth fund transfer.
Impacts of Withdrawing Pension Contribution
Before proceeding, remember that withdrawing your pension contribution can have long-term financial implications:
- Reduced Retirement Corpus: This decreases the amount available for your retirement income, potentially impacting your financial security later in life.
- Loss of Guaranteed Benefits: The EPF offers guaranteed returns and tax benefits, which are lost upon withdrawal.
- Tax Implications: Depending on your employment period and withdrawal reason, the withdrawn amount might be partially or fully taxable.
Weighing the Options
Consider alternative options like:
- Borrowing from friends or family.
- Taking a loan.
- Liquidating other assets.
While withdrawing your pension contribution might offer immediate relief, it comes with significant long-term consequences. Carefully consider your financial situation, goals, and alternative options before making a decision.