Do you have a gap in between jobs? Here's what you should know about the eligibility criteria for EPF withdrawal

Eligibility criteria for EPF withdrawal

The Employee Provident Fund (EPF) is a vital investment tool for salaried employees in India. It's a retirement benefits scheme that ensures financial security for employees after retirement. However, there may be instances where an employee may have a gap in their career, and this may raise questions about PF withdrawal.

The good news is that a gap in career does not affect PF withdrawal. Whether you are currently employed or not, you can withdraw funds from your EPF account. However, there are specific eligibility criteria that you need to meet to withdraw funds from your EPF account.

The eligibility criteria for EPF withdrawal are as follows:

• You must have completed five years of continuous service.
• You can withdraw funds for various reasons such as marriage, home purchase, medical expenses, education, and so on.
• If you are unemployed for two months or more, you can withdraw your entire EPF balance.
• If you are above 54 years of age, you can withdraw 90% of your EPF balance.

Also Read: Learn about Provident Fund (PF) 

To withdraw funds from your EPF account, you need to follow these steps:

1. Log in to the EPFO portal using your Universal Account Number (UAN) and password.
2. Go to the 'Online Services' tab and click on 'Claim (Form-31, 19, and 10C)'.
3. Verify your bank account details and select the type of withdrawal you want to make.
4. Enter the amount you want to withdraw and submit your claim.
5. Your employer will need to approve your claim before the funds are transferred to your bank account.

The importance of long-term retirement planning and EPF

According to financial experts, salaried employees should not withdraw funds from their EPF account unless it's an emergency. The EPF is a long-term investment tool that ensures financial security after retirement. It's essential to have a retirement corpus that can generate regular income during retirement.

In conclusion, a gap in career does not affect PF withdrawal. However, it's crucial to meet the eligibility criteria and avoid withdrawing funds unless it's an emergency. Withdrawing funds from your EPF account can impact your retirement planning and financial security after retirement.

Also Watch: EPF or PPF - Which one should you invest in?

Source links: 

1. https://www.bajajfinserv.in
2. https://www.adityabirlacapital.com
3. https://www.paisabazaar.com
4. https://groww.in
5. https://economictimes.indiatimes.com