EPF Withdrawal Rules Changed: The Employees Provident Fund Organization (EPFO) has changed the rules for withdrawing money from the PF fund. In such a situation, there is relief news for the employees, who were not able to withdraw enough money from their PF account during a health emergency. Now EPF members can withdraw up to Rs 1 lakh under the 68J claim. Earlier, this limit was only Rs 50 thousand.
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Apart from this, EPFO has also made changes to the software application. Members can withdraw money from the PF fund through Form 31 as per their needs. In this, money can be withdrawn for many needs like marriage, loan repayment, buying a house, land, or flat, treatment, children’s education, and marriage. By increasing the limit for treatment, EPFO issued a circular and gave information.
New withdrawal limit under Para 68J
- PF member can withdraw money from the PF account in advance for the treatment of illness of himself or any member of his family under Para 68J.
- After changing the rule, the employee can withdraw Rs 1 lakh or 6 months’ basic salary and DA (or interest received on the deposit amount of the employee’s share), whichever is less.
- For this, the employee will have to submit Certificate C along with Form 31, in which he and the doctor will have to sign.
- What is Para 68J, under which there is a big limit
- Employees can withdraw money from the PF fund for emergency needs. There are some limits for this. 68J contains the amount to be withdrawn from the PF account for the treatment of illness and the necessary conditions for it.
Know about Form 31
To withdraw money from the EPF account at the time of need, the employee must fill out Form 31. Under Form 31, employees can withdraw money under the conditions mentioned below.
- Para 68B – For buying a house or flat, or building a house
- Para 68BB – For repaying the loan taken from the bank
- Para 68H – For special needs
- Para 68 J – For treatment of illness of self or family member
- Para 68K – For their marriage or children’s education, or marriage
- Disabled employees can withdraw from the PF account under Para 68N.
- Employees can partially withdraw money under Para 68NN one year before their retirement.
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What is EPF?
EPF is a government scheme to improve the retirement life of employees. In this, the employee and the company deposit a fixed amount every month during the job. Along with this, the government gives interest on it annually.