What is EPF Form 31?| North Loop Official Blog
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04 Dec 2020

What is EPF Form 31?

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Introduction -

Before we look at the purpose and utility of Form 31, let us understand the significance of EPF or Employees’ Provident Fund.

EPF is a government-backed savings option that allows salaried individuals to build a significant corpus and cover their financial needs post-retirement. The Provident Fund works by creating a monetary reserve from the contribution extended by both employees and their employer each month (12% of the employees’ monthly salary).

What is Form 31?

EPF Form 31 gets used for filing a claim for partial withdrawal of funds from EPF or Employees’ Provident Fund.

You can choose to withdraw from the saved amount in your EPF during your employment period to cover any emergency expenses by filling Form 31.

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What is EPF withdrawal and how to withdraw the entire PF amount?

If you are still confused about what is EPF withdrawal or are wondering how to withdraw entire PF amount, continue to read further.

You can use Form 31 to withdraw your EPF funds partially or in full under certain circumstances. These include when you retire or if you remain unemployed for more than two months.

PF conditions for partial withdrawal/ PF withdrawal employee share and employer share-

The PF conditions for partial withdrawal, as well as the PF withdrawal employee share and employer share details, limits and requirements, are as follows -

   
Reasons for withdrawal   
   
Withdrawal Limit   
   
No. of years of service required   
   
Medical purposes   
   
Six times the monthly basic salary or the total   employee’s share plus interest, whichever is lower   
   
No criteria   
   
Marriage   
   
Up to 50% of employee’s share of contribution to   EPF   
   
7 years   
   
Education   
   
Up to 50% of employee’s share of contribution to   EPF   
   
7 years   
   
PF withdrawal for home construction/ purchase   
   
For land – Up to 24 times of   monthly basic salary plus dearness allowance; For house – Up to   36 times of monthly basic salary plus dearness allowance,
   
Limits are restricted to the total cost   
   
5 years   
   
EPFO home loan repayment   
   
Lower of the following:
   
Up to 36 times of monthly basic salary plus   dearness allowance; Total corpus consisting of employer and employee’s   contribution with interest.
   
Total outstanding principal and interest on   housing loan   
   
10 years   
   
EPFO home renovation (other than PF withdrawal   for home construction)   
   
Lower of the following:
   
Up to 12 times the monthly wages and dearness   allowance, or
   
Employees contribution with interest, or
   
Total cost   
   
5 years    
   
Partial withdrawal before retirement   
   
Up to 90% of accumulated balance with interest   
   
Employee should be 54 years and withdrawal should   be within one year of retirement/superannuation   

PF marriage loan eligibility -

The PF marriage loan eligibility is as follows -

You should have completed a minimum of seven years of service.

The maximum amount you can draw is 50% of your contribution (12% of the basic salary).

You can use the loan facility only three times in your working life.

You will have to submit the wedding invite or a certified copy of the fee payable.

How PF amount will be credited?

To know about how PF amount will be credited to your bank account, read the following points -If you apply for EPF claim online, then it takes 5-30 days to get the PF amount in your bank account. It also depends on how fast the EPFO office clears the claim. While some offices may do it in 5 days, others can take time.

If you apply for your claim in offline mode, then it can take around 20-30 days for the amount to get credited to your account.

You can also use your Member ID to check the EPFO official website for any updates on your claim request. Usually, you can get an update about the same within three weeks of your EPF withdrawal claim.

How to claim your EPF advance online?

During the nationwide lockdown, the government allowed workers facing difficulties to withdraw funds from their PF accounts online. But what is the eligible amount for EPF advance online?

You can apply for (lower of the following) -

Up to 75% of the total PF balance

Three months of PF wages

Claimed amount

Eligibility criteria -

UAN should be activated.

Verified Aadhar card should be linked with UAN.

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This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.