PF withdrawal: If you are employed, then you must have a PF (Provident Fund) account. Every month a certain amount is deposited in this account from your salary and company contribution. Many times we need to withdraw some money from our PF account, but do you know when, how, and how much money you can withdraw.
The Employees Provident Fund Organization (EPFO) has made some rules for this, which also include some conditions. It is very important to understand these rules so that you do not face any problems later. Today we will tell you in detail about all those rules of EPFO, through which you can withdraw money from PF for different needs.
Rules for withdrawing money from PF according to needs
EPFO has made flexible rules for withdrawing PF to meet various life needs. Let’s understand them one by one:
1. PF withdrawal for marriage
Marriage is an important occasion in everyone’s life, and money may be needed for it. You can withdraw money from PF for marriage. For this, you must be a member of EPF for at least 7 years. You must have a minimum amount of ₹1,000 in your account. You can withdraw up to 50% of your share of the contribution (including interest). You can use this money for your wedding, your siblings’ wedding, or your children’s wedding.
2. Money from PF for children’s education
Children’s higher education often requires a large sum of money, and PF can be helpful here. Under EPFO rules, you can also withdraw money from PF for your children’s education. For this too, 7 years of membership is mandatory. You can withdraw up to 50% of your share of the contribution (including interest). This facility is available only 3 times in a lifetime.
3. Withdrawal from PF to buy or build a house
It is everyone’s dream to have their own house. PF can help you fulfill this dream. You can withdraw money from PF to buy, build, or repair a house. For this, at least 5 years of EPF membership is required. Money can be withdrawn for repairs after 5 years of the house being built. If additional repairs are required, money can be withdrawn again 10 years after the first withdrawal. Only one withdrawal is allowed for this purpose.
4. PF withdrawal for medical needs
Health emergencies can come at any time, and in such a situation PF can become the biggest support. The rules for withdrawing money from PF for medical needs are quite simple. You can withdraw money at any time, even immediately after joining EPF. You can withdraw this amount as many times as needed. There is no membership period condition in this.
5. PF withdrawal before retirement
Just before retirement, withdrawing some money can meet your needs. If you have less than a year left for retirement, you can withdraw up to 90% of your total PF fund. This facility is available only once in a lifetime.
6. PF withdrawal in case of unemployment
PF money can become a big support in case of job loss. If your company or organization is closed for more than 15 days and you have become unemployed without compensation, you can withdraw part of your contribution. If you have not received a salary for more than 2 months continuously, you can still withdraw part of your contribution.
7. Withdrawal from PF to repay the loan
PF can also help in reducing the burden of loans taken for home. If you have taken a loan to buy, build, or repair a house, then you can withdraw money from PF to repay its outstanding principal and interest. For this, at least 10 years of EPF membership is required. You can withdraw up to 36 months’ basic salary + DA or the total of employee-employer contributions or outstanding loan amount, whichever is lower.