What are the respective contributions made to the EPFO account for an individual with a monthly salary of ?20,000? Could you break down both the employee and employer contributions? Additionally, what portion of this amount goes towards the Provident Fund (PF)? Lastly, could you explain the process for withdrawing funds from the EPFO account?

Ans: 1. You can withdraw up to 75% of the net balance in your EPF account, or three months of your basic salary plus dearness allowance, whichever is lower.
2. You can withdraw 100% of your EPF amount if you are unemployed for more than two months as per old rule.
3. You can withdraw up to 50% of your EPF amount for the marriage of your child or for their education after class 10.
4. You can withdraw up to 90% of your EPF amount if you are 54 years of age or above.

There is no maximum limit for the amount that can be withdrawn from your EPF account. However, you will need to pay income tax on the amount withdrawn if you have not contributed to your EPF account for at least five years.

The amount can be left in your EPF account after the contribution stops for an indefinite period of time. However, if you do not withdraw the amount after a certain period of time, it will be transferred to the Employees' Pension Scheme (EPS).

Ans: It’s great that you are thinking about your EPF and retirement savings.
Many working professionals get confused between PF and EPFO.
Let’s clear this step-by-step and cover everything you need to know.

? EPF and EPFO: What is the difference?

– EPF stands for Employees’ Provident Fund.
– EPFO stands for Employees’ Provident Fund Organisation.

– EPF is the actual retirement fund.
– EPFO is the government body that manages this fund.

– Think of EPF as your money.
– EPFO is the platform where it is held and managed.

– So both are connected but not the same thing.
– EPFO is like the bank, EPF is your savings in it.

? Is PF and EPF the same?

– Yes, in common use, PF and EPF usually mean the same thing.
– PF is a general term. EPF is the specific name under EPFO rules.
– If you had an EPF account, it was managed by EPFO.

– Some companies maintain PF privately, called exempted trusts.
– In such cases, EPFO does not directly manage your money.
– But if you were in a regular EPF account, it was with EPFO.

? You withdrew your PF: What does that mean?

– If you withdrew your full PF, then EPFO balance would be nil.
– Unless you worked in another company later and started new EPF.

– You can check EPFO passbook online to confirm balance.
– Visit: www.epfindia.gov.in and log in with your UAN.
– If passbook shows zero balance, no money is left.

– But if you had multiple EPF accounts, some balance may remain.
– Many people forget to merge old EPF accounts during job change.

? What if you suspect there’s still EPF balance left?

– Use your UAN (Universal Account Number) to check all EPF records.
– Login to: https://passbook.epfindia.gov.in/MemberPassBook/Login.jsp
– Use UAN and password (linked to your Aadhaar and mobile).
– You’ll see a list of all employers linked to your EPF.

– If balance shows in any account, you can withdraw it.
– If all balances are zero, withdrawal has already happened.

? How to withdraw EPF amount, if still available?

– You can apply online at www.epfindia.gov.in
– First, link your Aadhaar, PAN, and bank with UAN.
– Make sure KYC is complete. Mobile number should be active.

– Go to ‘Online Services’ → ‘Claim (Form-31, 19, 10C)’
– Select reason for withdrawal. Example: retirement, unemployment.
– Fill bank details, upload passbook copy.
– Verify through Aadhaar OTP and submit.

– Usually, amount is credited in 7–15 working days.

? How is the amount calculated?

– Your EPF balance has two parts: employee share and employer share.
– You contribute 12% of basic salary every month.
– Employer also contributes 12%, but some part goes to pension.

– Interest is added every year. Current EPF interest rate is 8.25%.
– The balance keeps growing with compounding interest.

– On withdrawal, you get full employee contribution with interest.
– You also get employer’s share (EPF part only), with interest.
– EPS (pension part) may not be withdrawn if you worked over 10 years.

? What if I worked over 10 years?

– You become eligible for pension under EPS.
– You can’t withdraw EPS corpus, but you can get monthly pension.
– To claim pension after 58, submit Form 10D via employer or EPFO.

? What if you worked less than 10 years?

– Then you can withdraw full EPF and EPS both.
– EPS withdrawal is lower as it earns no interest after exit.
– Use Form 10C to claim EPS amount if eligible.

? How much can I expect approximately?

– If you already withdrew full PF, balance will be zero.
– If not, check the EPF passbook to see the latest balance.
– Amount depends on your basic salary, years of service, and interest.

– For example, if monthly PF was Rs. 5,000 and you worked 10 years,
then rough EPF balance could be Rs. 9–10 lakhs or more, including interest.

– This is just indicative. Check passbook for real value.

? If passbook shows balance but claim fails?

– First, check if your KYC is updated.
– Bank account must be active and in your name.
– Aadhaar, PAN must be linked and verified.

– If UAN is not active, activate it using mobile OTP.
– For errors, raise grievance at: https://epfigms.gov.in/
– You can also visit local EPFO office with Aadhaar and UAN.

– Take employer’s help if claim is not processing.

? Keep these points in mind for EPFO claims

– PAN is needed to avoid higher TDS on early withdrawal.
– If service was less than 5 years, tax may apply on interest.
– After 5 years, withdrawal is fully tax-free.

– Don’t try to withdraw small balances multiple times.
– Instead, merge EPF accounts using UAN during job change.

? If you had multiple PF accounts in past

– Use UAN to link all old EPF numbers.
– Submit transfer request online through EPFO portal.
– This will combine balances in one account.
– Helps in getting correct final corpus and pension eligibility.

? For NRIs or people settled abroad

– You can still withdraw EPF fully.
– Update NRI bank account and KYC.
– Use OTP sent to Aadhaar-linked mobile in India.
– Or give power of attorney to someone in India.

– If mobile is not active, update through Aadhaar service center.

? Do not invest EPF withdrawals into insurance products

– Many people shift this money into traditional insurance plans.
– Avoid ULIPs or endowment policies promising returns and insurance.
– These offer poor liquidity and low post-tax returns.

– If you already invested in LIC or ULIP, consider surrendering.
– Reinvest proceeds in mutual funds through MFD with CFP credential.
– It helps track portfolio and get advice for long-term goals.

? Direct mutual funds may look cheaper but may hurt long term

– You miss professional guidance and risk assessment.
– Mistakes in fund choice, exit timing, or review can cost more.
– Regular plans through CFP-backed MFDs offer ongoing review.

– You get help in rebalancing, fund switch, tax planning.
– This support helps you grow corpus safely and steadily.

– Fees in direct funds may save 0.5–1%,
but wrong decisions can wipe 10–15% easily.

? Index funds are often marketed as easy tools

– But they lack active risk management.
– You ride the full market cycle up and down.

– No exit when valuations are stretched.
– No strategy for smallcap or sector allocation.

– Actively managed funds offer better downside protection.
– Skilled fund managers add value through smart allocation.
– Long term SIPs in quality active funds give more comfort and growth.

? Finally

– If you already withdrew PF, no need to worry.
– If not, check EPFO portal and initiate withdrawal.

– Consolidate all old accounts under one UAN.
– Ensure Aadhaar, PAN, bank and mobile are linked.

– If EPS pension is applicable, plan to claim it post 58.
– Avoid locking EPF money in poor-return products.

– Work with Certified Financial Planner through MFD route for better investing.
– Focus on long term wealth creation, not short-term returns.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment