EPF Withdrawal Rules: The Employees’ Provident Fund Organization (EPFO) allows its members to withdraw money from the Provident Fund (EPF) account at the time of important needs of life. This organization is among the largest social security institutions in the world and allows partial or full withdrawal in situations like marriage, higher education, buying or building a house, treatment or unemployment.
Major withdrawal options from EPF:
EPF members can withdraw funds from their account in three ways:
PF Final Settlement
Partial Withdrawal
Pension Withdrawal Benefits
Withdrawal during the job:
If a person is in job, he cannot withdraw the entire amount from his EPF account. Partial withdrawal is allowed under certain circumstances.
In case of unemployment:
If a person is unemployed for 1 month, he can withdraw up to 75% of his deposit amount.
If unemployed for 2 months or more, he can withdraw the entire amount.
Withdrawal for education:
EPF members can withdraw up to 50% of their total deposited amount, which can be used for their own or children’s education after Class 10.
To buy or build a house:
Up to 90% of the EPF account amount can be withdrawn for purchasing or constructing a house.
If the house is at least 5 years old, PF advance can also be taken for house repairs. This facility is available under Para 68B(7), in which the member has to make only one declaration. By knowing these conditions related to EPF withdrawal, you can use your funds properly and use it for the needs of life.
To buy or build a home
If you want to buy or build a new house, you can withdraw up to 90 percent of your deposit amount from the EPF account. Apart from this, if your house is at least five years old, you can also take an advance for repairs under ‘Para 68B (7)’. For this, just a declaration is required.
Withdrawal for marriage
EPF account holders can withdraw up to 50 percent of their total savings for marriage expenses. This facility can be availed for the marriage of self, children or siblings.
On changing jobs
If you change jobs, there is no need to withdraw PF money. If your Universal Account Number (UAN) is active and the required forms have been submitted, the old balance can be easily transferred to the new employer’s account.
Claim on retirement
According to the EPF Act, when a member retires at the age of 58, he has to claim final settlement. If he has worked for more than 10 years, he can also avail the benefits of EPS (pension scheme).
PF withdrawal process
EPF withdrawal can be done both online and offline. For this, a composite claim form (Aadhaar or non-Aadhaar) has to be submitted. This process can also be started by visiting the EPFO website.