Withdrawing Your EPF — How Long Does It Take (and the Guessing Game In Between)?

by Vinaya HS on February 23, 2011

in Finance

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When I resigned from my previous job, I opted to withdraw my Employees Provident Fund (EPF) contribution. Unlike D, I don’t contribute to the Voluntary Provident Fund (VPF) — hence my EPF corpus was built on a monthly contribution of 12% of my Basic Salary plus an equal match from my employer. I filled-up the necessary application forms and submitted these as part of the exit process. This was on July 31, 2010.

I received the EPF credit in two tranches: the first on February 05, 2011 and the second on February 11, 2011. Apparently, your EPF contributions are split into two: a pension part and a provident fund part. Hence, the payout also happens in two stages.

What’s interesting, however, is the guessing game that you play in the intervening six months while you wait for your money.

  • Your employer generally doesn’t have a clue about the status of your application once they handover the forms to the applicable Provident Fund office. I’ve heard multiple versions of the processing steps at different times. Quite not sure which one’s true.

  • A good friend, who resigned a couple of weeks after I did, received a couple of status SMSes from the Provident Fund office suggesting that his forms had been processed and that the payments had been dispatched through check. I, however, never received any status SMSes.

  • Having received the lower-value pension part (through NEFT) but not the higher-value provident fund part, my friend (who’d received neither) and I spent a good couple of hours at the Bank (where we have the Savings Account into which we’d asked for the payout to happen) trying to figure out why. The Bank officials were sympathetic to our cause and extremely helpful in their investigation, but ultimately they couldn’t answer why. I received the higher-value provident fund part a week later (again, through NEFT).

  • In the interim, my friend had also managed to get someone from our previous employer to personally visit the Provident Fund office and check on our applications. We were given check numbers (they were the same for both of us!) and the amounts but we were further confused when my first credit happened over NEFT but the amount was an exact match. The Bank wasn’t sure how this was possible.

  • A couple of colleagues who’d resigned before we did told us that they’d received the full amount in a single credit — but they’d faced other issues of their own such as signature mismatches.

  • We finally decided to wait it out for a week.

Luckily the ending was a happy one — for both of us.

But why it takes six months, to begin with, is beyond my understanding.

What has your experience been?




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{ 40 comments… read them below or add one }

Shilpa February 23, 2011 at 11:42 AM

Transferring EPF is even more fun.
Especially if you have a third party involved whom either of the companies engages to transfer the amount, its a mad house that can beat any story Priyadarshan has ever written.
Nobody has a clue of what is happening and the employee keeps getting a standard response such as “In process” when asked.

Vinaya HS February 23, 2011 at 1:42 PM

@Shilpa:

Yeah. One of my colleagues hasn’t received an EPF transfer confirmation that he initiated 3 years back! I wonder who’s enjoying the “free float.”

Joe February 24, 2011 at 11:03 AM

Hi Vinay, I am going through the trauma now. I had send a request for PF transfer in April 2008, forms of which have vanished to thin air (as per PF office). I went to my employer and again got the forms for transfer, submitted the same,only to go into thin air with an advice to submit the forms again for the third time.
Now, I have decided to withdraw the amount (rather than transfer) and have initiated the process. Hope, the forms doesn’t meet the same fate as its predecessors !

Anil February 24, 2011 at 11:09 PM

Hi vinay,
Take a look at this site – http://www.epfindia.com/indiaepf/loginnew.aspx
It says the last update date is on 25h November 2010. This is the official page to check the status. This is amazing.

You know, that’s the reason you should invest more than the required in VPF. Instead, invest in PPF. We can know our current balance and withdraw too.

Vinaya HS February 25, 2011 at 10:41 AM

@Joe:

Good luck. :-) Hope the withdrawal has a happy ending soon. I did read in the business news that the EPFO is digitizing all subscriber records — I wonder how much more of a mess that would be.

@Anil:

Yeah. The brilliance of this database is such that it didn’t even recognize my Employer’s Establishment Code. Kept returning an error until I finally gave up. I’d even gone to the extent of trying this form in multiple web browsers!

Joe February 27, 2011 at 9:34 PM

Hi Vinay, I had a query regarding tax on PF withdrawal ? Did you had to pay any tax on the amount you withdrew from your PF account ? I am hearing conflicting views on this tax issue. One view is that if you withdraw the amount before 5 years of opening the account, you have to pay tax on employer’s PF contribution and the interest earned on total amount.
Second view is that you only have to pay tax on the interest earned on your accumulated amount.
Would like to hear how it was for you ? Did the PF cut the tax or did you pay after getting the amount or was it totally tax free ?

Vinaya H S March 16, 2011 at 6:10 AM

@Joe:

I’ve no idea how the final withdrawal amount is calculated since no account closure statement is issued. And I’ve been trying to get the right answer to the tax angle — unsuccessful so far.

Ketan March 16, 2011 at 8:52 PM

As per my understanding, if the continuous contribution to PF is > 5 years (even if switched jobs is okay, but PF should be transferred and not withdrawn), in that case the entire withdrawal amount is tax-free. But if it is <5 years, then only employee contribution is tax-free . The interest on employee contribution + employer contribution & interest are both taxable at the rate of current income tax-slabs. This is actually added as "Income" to the employee and tax as per the slab.

There are some other conditions also (like ill health, employer out of business etc) to allow tax-free withdrawal even before 5 years.

Vinaya H S March 17, 2011 at 12:09 PM

@Ketan:

Thanks for the detailed information regarding the income tax angle. I still feel that an account closure statement is needed to work these out — unless you have all your old salary slips.

doug July 19, 2011 at 11:34 AM

My online claim status says my pf withdrawal application has been received on 26.04.2011 and is under process! Can anyone suggest when probably I would get the credit to my account. I tried EPFiGMS and there is no response even after 30 days. My account belongs to Delhi, and I live in Coimbatore. So I cannot visit the office personally also. Waiting for the jackpot :(

Rohit Garg August 25, 2011 at 3:08 PM

Same here, I applied for my PF withdrawl in April 2011, and I have no clue where the forms are, and no way to track them! Just keeping my fingers crossed and waiting for the jackpot ! :)

doug August 25, 2011 at 5:32 PM

Rohit,
You can track ur claim status @ http://59.180.233.84/homepage_claim_status_new.php
However getting credit of the same towards ur account is a jackpot!! ;)

Rohit Garg August 26, 2011 at 7:54 AM

Hey doug,

That link has got very recent data, my account is almost 5 years old :(
My bad, link says : record not found ! :(

Thanks anyways
Rohit

Bhavesh Vyas August 29, 2011 at 12:27 PM

My self Bhaveshkumar Navinchandra Vyas. My PF withdrawal form submitted on 8-Apr-2011 by my Employer.

The details are as follows:

STATUS for Member ID: KDMAL00448930000000608

Claim ID : KDMAL110400021606
Status : CLAIM FORM 19 FOR PF SETTLEMENT FOR MEMBER ACCOUNT NO KDMAL00448930000000608 HAS BEEN RECEIVED ON 08.04.2011 IS UNDER PROCESS

Claim ID : KDMAL110400021616
Status : CLAIM FORM 10C FOR WITHDRAWAL BENEFIT/SCHEME CERTIFICATE FOR MEMBER ACCOUNT NO KDMAL00448930000000608 HAS BEEN RECEIVED ON 08.04.2011 IS UNDER PROCESS.

Today its almost 4months and above, still I am not getting my PF money. I also registered Grievance 2 times, but no hope.

Grievances:
SROKN/E/2011/02205
SROKN/E/2011/01063

I am very thankful, if any body give suggestion. Can you tell me when I will get jackpot ;)

Muhammad Saajid Razaa November 29, 2011 at 7:44 PM

Dear sir/madam:please can u tell me how long must wait for my payout of my provident fund to be put into my bank account. Thank you : Mr M.S. Razaa

nitesh thakkar December 26, 2011 at 1:22 PM

when i check epfindia website it states that the pf form has been received by them on the 07/12/2011,so if they have received the form how long will it take them to credit my account ? can someone please reply on my email id nitesh_thakkar3@yahoo.com

Thank You
Nitesh thakkar

doug December 28, 2011 at 6:51 PM

Hi Nitesh, I guess it should get credited between 30 to 90 days. I got it in 70 days. Good luck ;)

RAM NARESH January 2, 2012 at 12:09 PM

Hi,
I entered all the details in get balance of EPF , after submitting I got a prompt you will get an SMS shortly , but up to now I didn’t get the SMS.

Jaydeep February 18, 2012 at 10:03 PM

Hey Vinay,

I was wondering whether you paid for the domain & rented server spacetoo coz the thing is Im trying to setup my own website.

Do I also need to understand that do i need to pay google to index my website/blog in thier search results?!

It would be so kind if you could give me some info on how this concept runs.

Thank you & warm regards,

JB

vinay March 7, 2012 at 6:38 PM

hi,
how much time it takes for the payment after getting sms that your payment is under process.

Jay March 7, 2012 at 10:28 PM

I received the payment in 2 months exactly after I got their sms.

shaikh zakirhusen April 6, 2012 at 5:12 PM

hi,
how much time it takes for the payment after getting sms that your payment is under process. pf no MH/BAN/19900/233136 submited form 9 feb 2012

Narendra May 8, 2012 at 10:27 AM

Hi,

I have submitted for PF withdrawal from an organization where I was working 6 years back.
I have submitted all the documents and waiting for him to submit it with EPFO.
Yesterday when I checked with the finance department, he said that they are waiting for Form 3 and once that is received they will submit my forms.
I searched in the Internet to understand what is this Form 3 – I could not get any information.

So, can somebody tell me what is this Form 3 and is it necessary for the employer to submit my PF Withdrawal?

Regards,
Narendra

satyam kumar yadav July 4, 2012 at 12:40 PM

Hi,
Please some one help me to know how this PF Withdrawal works. actually i got my PF amount PF and EPS Rs. 6148/- and Rs. 2754/-. on 27 june 2012 but this is not a complete amount of my PF actually it is 32400 Rs something on my PF withdrawal form.So that i had generated grievance on EPF site to know when my remaining amount will come. but what they replied is, This is with reference to your Grievance registered vide Registration Number DELSO/E/2012/05948.
It is informed that your grievance is being treated as non-actionable due to the following reason(s):
Final PF and EPS claim were settled for Rs. 6148/- and Rs. 2754/-.
so what this means? there is no more money is going to come from PF office.
please some one give me solution for this.

meena gurani July 20, 2012 at 12:23 PM

Date: 07.07.12

San Beverages Pvt. Ltd. – Estt. Code No. UPMT / 22376

Subject – Withdraw PF of A/c No. 034

Dear Sir,

This is to inform you that one employee name Yogesh Gurani was working with us and now he has left the job because of health

Mr. Yogesh left the job after completed 10 yrs in the company. Now we come to know that his PF amount has been transferred to the Pension Fund

1. He is approx 37 years and not in a position to work further in any company because of his health and also in not a position to wait for 15 years for pension
2. He has two children and his mother also living with him
3. His wife is working and drawing approx 9000/- per month

Our question is how can he withdraw his fund from Pension Fund, because it is very difficult and in future is also difficult to run the family with Rs.9000/-.He want to start his own some little work with this fund and with the help of his relative.

Please suggest how can he withdraw the Pension Fund so that he can fulfill the requirement of his family.

Thanking you,
Dharmender

pfwithdraw August 31, 2012 at 1:03 AM

Dear All,

I received SMS saying that your claim is approved for payment through cheque. Payment under process. Can I know how long it takes to receive cheque?

Regards.

Withdraw PF August 31, 2012 at 1:04 AM

Dear All,

I have received SMS saying that your claim is approved for payment through cheque. Payment under process. Can I know how long it takes to receive cheque?

Regards.

PF June 25, 2013 at 3:04 PM

Hey, after approval in how many days you received payment?

Kirankumar K December 31, 2012 at 1:04 PM

Hi guys,

I need some help related to PF withdrawal, i was working with MNC and resigned on sept 2012(5 years of service) however my full and final settlement is not yet done till date,

1. when should i apply for PF withdrawal post resignation
2. per employer i can only apply for PF withdrawal post full and final settlement, i have to wait 60 days after full and final settlement, can some one help me to confirm what is the correct period to apply for PF withdrawal.

It will be great help if you could respond on this ASAP.

Tek Nath January 10, 2013 at 2:11 PM

My name’s spelling are slightly having difference with epf acc. and bank acc. So will it create trouble in withdrawing my EPF ? Or is their any any good idea to correct my name with bank acc. Please help . M a poor guy .

saurabh jain January 31, 2013 at 5:00 PM

hi any one can tell me how can i withdraw my epf account my company have c close plz rpl. thanks.

Anonymous March 1, 2013 at 2:35 PM

sjjc jhjhjkshfjks2ejwvwhcvbmxn,lshdqbencndvjdjvkfwhkqkwljwjdkjsvcbdmnvnxmv bcmhcvkjshhdjfjskjdabxsmvcbxbvjdjklfo;wkdkjwehfjejdvdmbvriiueoiowepwbdc polidfbdsfd vdfwdbwhbganduhhhdbgdhhdvfnbvcbvjkshfjkejfkjwkeghfjhjshfjsfjshufieriwqe fuihfajdhuyfejytysyssatrqrdwgdwgdsd;l’]]kdljsdlffnbgdghdagdsahgfsgjasgdsgddwqutjfcdjgsakgcjvjgkhcljgjhdgfhgjywfdwdgikgdiudfcjdcjdhyuasfgsvdhasbjdgsaidhgtwyqdrqdwfhxvscxvskjhcdfcdegfckdnvndjfkekrdoefpwpdpow djjfjkdksdksjdksdkwhhdgfhjshdjsbfndvdsjd hdfhdjfdsjkjfdhjdjjalskdksjdlshjdhsjhd dhhfjdfhgvhjdvjdhvjdkjskjdshckjvgdhhvcjkvjklcjvhjcdhvjduwjvdivjdvjkdjhjdgcjjcgxbjkxcijisufijdchjdhcjdlvhhvbghdhvdhvkjdjvhjdflkdjflsfjhhjfuiedwuiiufjdvjdhvjdhvjdvdhvdjvg djhvjdvjc jdcj

Anonymous March 1, 2013 at 2:37 PM

i pls can u tel me how to claim my pf amount pls

Amit March 15, 2013 at 10:00 PM

Hi All, We process all EPF/PF account related matters for a fee, we have dedicated staff to process your queries, please mail us at info@apnacapital.com

chandra prakash March 19, 2013 at 9:24 AM

Hi All, can any one tell me how long it will take to receive the claim after submitting the withdrawal form. I have submitted claim before 2 months but still not received, even claim status is not showing in epfo site.

Pramod May 7, 2013 at 7:44 PM

PF funda is very funny in India. The article on The Econim Times says that the PF commissioner is worried about people withdrawing PF on every job change. I feel like laughing out loud. I have tried transfer 5 years back from my previous company to my next company. I haven’t seen any status or any transfer happening. I think it would havce gone to the commissioner’s pocket or somewhere else. If he reads it he will say why did I not follow up? Good question. I would rather ask these big people talking big things to just go and visit a PF office without flasing their I cards to get to know of status of transfer. I am sure everybody know the answer including the EPF commissioner. Let the commissioner streamline the PF office than advicing ppl what they need to do with their savings.

sarita June 25, 2013 at 3:01 PM

Dear All,

I have received SMS saying that your claim is approved for payment through cheque. Payment under process. Can I know how long it takes to receive cheque?

Regards.

Prashanth.V July 19, 2013 at 1:18 PM

My self Prashanth.V. My PF withdrawal form submitted on 19-Jun-2012 by my Employer.

The details are as follows:

STATUS for Member ID: PYKRP00139330000002878

Claim ID : PYKRP130600012387
Status : Claim Form 19 for PF Settlement AGAINST Member Account No (PYKRP00139330000002878) has been settled. Payment sent through cheque No 859619 dated 02.07.2013.

Claim ID : PYKRP130600012388
Status : Claim Form 10C for Withdrawal Benefit AGAINST Member Account No (PYKRP00139330000002878) has been settled. Payment sent through cheque No 735851 dated 02.07.2013.

Today its almost 18 days and above, still I am not getting my PF money.

I am very thankful, if any body give suggestion. Can you tell me when I will get jackpot ;)

Prafulla September 6, 2013 at 7:16 PM

I received half of my PF amount today through NEFT

Worried about rest of the amount , will it get credited soon

Mohamed Sulaiman S M December 5, 2013 at 1:44 PM

I have applied for PF and i got an information as application got received on 02-dec-13 and under Process..How long it will take to approve and settle that amount to my account via NEFT ?

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