As per the Employees’ Provident Fund Scheme, 1952, PF account holders can withdraw part of their funds for marriage, higher education, house purchase/construction or other reasons like medical illness and unemployment.
If you are working, of course you also have a PF account. Every month, the amount of contribution made by you and your employer is deposited in the PF account. Often such a situation arises when you have to withdraw some amount from the money deposited in your PF account while you are in employment.
But do you know when and how much amount you can withdraw from your PF amount? Actually, EPFO has fixed some rules for this and there are some conditions in it. Which you should understand in advance. This will not cause you any further trouble. Let us discuss the important issues related to this here.
You can withdraw EPF advance for marriage.
As per the provisions of Section 68K of the Employees’ Provident Fund Scheme, 1952, you can withdraw money for marriage but the PF account holder must have been an EPF member for at least 7 years. Also, they must have at least ₹1,000 in their EPF account. PF account holders can withdraw up to 50% of their own contribution to EPF, which includes interest. The EPF advance received for marriage can also be used for your marriage or the marriage of your siblings or child.
EPF Advance for Education
As per EPFO rules, withdrawal of money for children’s education is allowed. It also has the same rules as marriage. EPFO members can withdraw money only three times in their lifetime and the maximum withdrawal limit is 50% of their own fund contribution. Which includes interest. EPF advance for education can be withdrawn only by those members who have completed at least 7 years in EPF.
You can take out an advance for your home.
To purchase or construct a house, PF holders can withdraw EPF money subject to certain conditions. To purchase a house/land or construct a house, the member should have completed at least five years of EPF membership as per section 68B of the EPF Scheme, 1952. For repairs or improvements to the house, members can withdraw money after five years of completion of the house. For additional repairs, money can be withdrawn after 10 years from the date of first withdrawal. For this, EPF members can withdraw money only once.
Permission to withdraw advance for medical reasons
The conditions for withdrawal of EPF amount for medical reasons are flexible. Members can withdraw money at any time, even immediately after joining. For this, as per Section 68J of the EPF Scheme, 1952, EPF advance amount can be withdrawn 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 Section 68NN of the EPF Scheme, 1952 and the member can do it only once.
For disability
For physically disabled members, as per Section 68N of the EPF Scheme, 1952, withdrawal of 6 months basic pay and dearness allowance, or employee’s share with interest, or cost of equipment, whichever is lower, is allowed. Members can withdraw money every three years for purchase of equipment to reduce discomfort due to disability.
In a situation of unemployment
According to Upstox News, if the company/organization remains closed for more than 15 days and the employee becomes unemployed without any compensation, then as per Section 68H of the EPF Scheme, 1952, the member can withdraw the employee’s share along with interest. If an employee has not received salary for more than two consecutive months, he can withdraw his share of interest.
To pay off debt
To pay the outstanding principal and interest on the loan taken for purchase/construction or repair of a house, the member can withdraw money as per section 68BB of the EPF Scheme, 1952. If the PF account holder has been an EPF member for at least 10 years. The member can withdraw 36 months of basic salary and dearness allowance, or the total share of the employee and the employer with interest or the total outstanding principal and interest, whichever is lower.
