EPF Withdrawal Rules: EPF money can be withdrawn even before retirement for 11 special reasons, such as medical emergency, children’s education, buying a house or in case of job loss. Know how much money can be withdrawn from PF in every situation.
EPF Withdrawal Rules: Employees’ Provident Fund i.e. EPF is one of the most trusted retirement saving schemes in India. Both the employee and the employer contribute 12% in it. The Employees’ Provident Fund Organization (EPFO) pays a fixed interest on it every year. This entire money is received after retirement.
But, under certain circumstances, you can withdraw Provident Fund (PF) money even before retirement. Let us understand in detail under what circumstances and how much EPF advance (partial withdrawal) can be withdrawn during service.
Easiest to withdraw PF in medical emergency
EPFO has made the rules for health related needs the simplest. Any member can withdraw money at any time. There is no condition of 7 years of membership for this, which is there in many other withdrawals. You can withdraw a maximum of 6 months basic salary + DA or the total amount of your share, whichever is less. This facility is applicable for the treatment of the employee, his spouse, children or parents.
You can withdraw PF money for children’s education
If you have contributed to EPF for at least 7 years, you can withdraw money from your PF account for your children’s post-matric education (studies after 10th). This withdrawal is based on the employee’s share of the deposit and the interest earned on it.
This means that the employer’s deposit cannot be withdrawn. A maximum withdrawal of 50% of the amount is allowed. This facility is only for the higher education of children. It can be used only three times in total.
EPF advance is also available for marriage
EPFO also allows its members to withdraw money from PF for their own, children’s or siblings’ marriage. Here too, membership of at least 7 years is a must. An employee can withdraw up to 50% of his share of the deposit amount and the interest earned on it.
This facility can be availed only three times in total, whether it is for studies or marriage. Therefore, it should be used wisely.
To buy or construct a home or repay a loan
If you want to buy a house or flat or construct a house yourself, then a minimum of 5 years of membership is required for EPF withdrawal. The maximum withdrawal is based on 24 to 36 months of basic salary + DA or total contribution (employee + employer + interest) or cost of the house, whichever is lower.
Additionally, after 10 years of membership, you can withdraw an amount up to 36 months of basic salary or loan outstanding, whichever is lower, to repay if you have taken a home loan.
For house repairs
If you had taken money from EPF to build a house, and now it has been more than 5 years, then you can withdraw money again for repairs. This withdrawal can be done only once every 10 years.
One year before retirement
If you are 54 years or older and you are one year away from retirement, you can withdraw up to 90% of the amount from EPF. This withdrawal can be done only once. After this, the remaining amount is available at the time of pension or full withdrawal.
On being fired from the job or unemployment
If an employee has been fired from his job and is challenging this decision in the court, then he can withdraw up to 50% of his share of the total deposit amount.
At the same time, if the company is closed for 15 days or more and you are not getting salary, then you can withdraw your share amount. If you do not get salary for 2 months (except strike), then also PF will be withdrawn.
In case of disability
If an employee becomes disabled in an accident, he can withdraw money once every 3 years to purchase necessary equipment. The maximum limit is 6 months’ basic salary + DA or the employee’s deposit amount. Whichever is less can be withdrawn.
To invest in a pension plan
Members who have completed 55 years of age can withdraw 90% of the EPF amount and invest it in schemes like Varistha Pension Bima Yojana. This option is for those who want regular pension.
You can withdraw PF even if there is a power cut
Although this situation is very unusual, but if there are too many power cuts in your area, then you can withdraw one month’s salary or ₹ 300 or your share amount, whichever is less. For this, the member has to use EPF Form 31.
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