EPF allows account holders to make partial or full withdrawals for various needs like marriage, education, house purchase, repairs, and unemployment. But there are some conditions regarding how much funds you can withdraw in which situation. Know about this here.
For employed people, their Provident Fund or PF account is not just a savings but a huge financial support. The Employees’ Provident Fund Organization (EPFO) provides the facility to withdraw this money at the time of need. From marriage, unemployment, children’s education to medical emergency, you can withdraw money from EPFO within a fixed limit and fulfill your needs. This is called Partial Withdrawal. Here, know the answer to every question related to EPF Withdrawal in simple language.
1. Use PF to buy or build a house
If you want to build or buy your dream home, EPFO can prove to be helpful for you. You can withdraw up to 90% of the total amount deposited in your PF account. But for this, you should have completed at least 5 years of employment. You can avail this facility only once in your life.
2. Advance for house repair
If your house is more than 5 years old and you want to get it repaired or renovated, you can still take an advance from PF. You can withdraw an amount equal to your 12 months’ basic salary and dearness allowance (DA). For this, you have to give a self-declaration under Para 68B (7).
3. Tension over children’s education or marriage ends
Every parent worries about the future of their children. EPFO helps you in this too. You can withdraw 50% of the employee’s share with interest for your, your children’s or siblings’ marriage. Similarly, the same amount can be withdrawn for higher education of children after 10th. For this, your job should be completed for 7 years.
4. What to do if you lose your job? (Unemployment)
If unfortunately you lose your job, then PF money can handle you. If you are unemployed for a month, then you can withdraw up to 75% of the total amount deposited in your PF account. If unemployment has been for two months or more, then you can also close the account by withdrawing the remaining 25% amount.
How to withdraw money?
Now it has become very easy to withdraw PF. You can do this work online. KYC is very important for this. First of all, make sure that your UAN (Universal Account Number) is activated and your KYC is complete. In this, it is mandatory to link your Aadhaar, PAN and bank account with UAN. After this you can claim through EPFO portal or Umang app. EPFO has also started the facility of instant withdrawal, which can provide immediate money in a situation like medical emergency. If your bank account is linked to UPI, then you can avail this facility in an emergency and get immediate funds, which will provide quick help in case of financial crisis.
FAQs
1. How many days does it take to get the money after applying for PF withdrawal?
Usually, it takes 5 to 20 days for the online claim to be settled and the money comes directly to your bank account.
2. Can I withdraw the entire PF amount while working?
No, during the job you can only make partial withdrawals for some special needs (like house, marriage, education). The entire amount can be withdrawn only on retirement or if you are unemployed for more than 2 months.
3. Should I withdraw PF money when I change jobs?
Absolutely not. You should transfer your PF balance to the new company. This will add to your total service period, which is required for 5 years tax rule and pension benefits.
4. Which form is to be filled for PF withdrawal?
In the online process, you just have to select the reason for the claim, the system automatically selects the correct form (eg- Form 31 for advance).
5. Can PF be withdrawn from UMANG app?
Yes, you can easily claim for EPF withdrawal through UMANG app, provided your KYC is complete.
