PF Account Withdrawal: As per the Employees’ Provident Fund Scheme, 1952, PF account holders can withdraw a part of their money for reasons including marriage, higher education, purchase/construction of a house, or medical illness and unemployment.
PF Account Withdrawal: If you have a job, then obviously you also have a PF account. Every month, the amount of contribution made by you and your employer is deposited in the PF account. Many times such situations arise when you need to withdraw some amount from the money deposited in your PF account while you are in job. But do you know when and how much amount you can withdraw from your PF amount? Actually, EPFO has set some rules for this and there are some conditions in it, which you should understand beforehand. This will not cause you any trouble in future. Let us discuss the important things related to this here.
You can withdraw EPF advance for marriage
According to the rule of Para 68K of the Employees’ Provident Fund Scheme, 1952, you can withdraw money for marriage but the PF account holder should be an EPF member for at least 7 years. Also, there should be a minimum of ₹ 1,000 in their EPF account. PF account holders can withdraw up to 50% of their own contribution to EPF, including interest. EPF advance for marriage can also be used for your marriage or the marriage of your sibling or child.
EPF advance for education
According to the EPFO rules, withdrawal of money for children’s education is allowed. It has the same rules as marriage. EPFO members can withdraw money only three times in their lifetime, and the maximum limit of withdrawal is 50% of their own contribution to the fund including interest. EPF advance for education can be withdrawn only by those members who have completed at least 7 years in EPF.
You can withdraw advance for home
To buy or construct a house, PF holders can withdraw EPF money under certain conditions. To buy a house/land or construct a house, the member must have completed at least five years of EPF membership, as per Para 68B of the EPF Scheme, 1952. For repair or improvement of the house, members can withdraw money after five years of completion of the house. For additional repairs, one can withdraw money after 10 years from the first withdrawal. EPF members can withdraw money for this purpose only once.
Withdrawal of advance for medical purpose is allowed
The conditions for withdrawing EPF amount for medical reasons are flexible. Members can withdraw at any time, even immediately after joining. As per Para 68J of the EPF Scheme, 1952, EPF advance can be withdrawn for this as many times as required.
One year before retirement
If a member wants to withdraw the amount one year before retirement, he is allowed to withdraw up to 90% of the total PF fund one year before retirement, as per Para 68NN of the EPF Scheme, 1952, and the member can do it only once.
For disability
For physically disabled members, as per Para 68N of the EPF Scheme, 1952, withdrawal of 6 months’ basic salary and DA, or employee’s share with interest, or cost of equipment, whichever is lower, is allowed. Members can withdraw money every three years to purchase equipment to mitigate the suffering caused by disability.
In case of unemployment
According to the news of upstox, in case the company/institution is closed for more than 15 days, and when the employees become unemployed without any compensation, the member can withdraw the employee’s share with interest, as per Para 68H of the EPF Scheme, 1952. If an employee has not received salary for more than two consecutive months, they can withdraw their share of interest.
To repay loan
To pay outstanding principal and interest on loan taken for purchase/construction or repair of house, members can withdraw money if the PF account holder has been an EPF member for at least 10 years, as per Para 68BB of the EPF Scheme, 1952. Members can withdraw 36 months of basic salary and DA, or the total of employee and employer share along with interest, or the total outstanding principal and interest, whichever is lower.
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