If you work, then obviously you will also have a PF account. Every month, the amount contributed by you and your employer is deposited into the PF account. Many times, such situations arise when you need to withdraw some amount from the money deposited in your PF account, even while working. But do you know when and how much you can withdraw from your PF? EPFO has made some rules for this, and there are some conditions in it, which you should understand beforehand. This will not cause you any problem in the future. Let us discuss the important things related to this in detail here.
You can also withdraw an advance from PF for a marriage
According to the previous rule of Para 68K of the Employees Provident Fund Scheme, 1952, you can now withdraw money for marriage, but the PF account holder should be the EPF member for at least 7 years old. Also, there should be at least ₹ 1,000 in his EPF account. PF account holders can also withdraw up to the 50% of their all contribution to the EPF, including interest. EPF advance for marriage can also be used for their marriage or the marriage of their siblings or children. This is a great relief for those who need money for important expenses like marriage.
PF will also be available for children’s education
According to EPFO rules, withdrawal of money is also allowed for children’s education. Its rules are the same as marriage. EPFO members can withdraw money only three times in their entire lifetime, and the maximum limit of withdrawal is 50% of their 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 EPF advance for education can be withdrawn only by those members who have completed at least 7 years in EPF. This facility helps in making higher education for children financially easy.
Withdraw your money from the PF to buy or build your house
To buy or build a house, PF holders can withdraw money from EPF under certain conditions. As per the Para 68B of the EPF Scheme, 1952, to purchase the house/land or construct a dream house, the member must have to completed at least full five years of EPF membership. For repairs or improvements to the house, members can withdraw money five years after the completion of the house. For additional repairs, one can withdraw money 10 years after the first withdrawal. EPF members can withdraw money only once for this purpose. This facility is very useful for those who are dreaming of building or buying their own house.
PF will also come in handy in a medical emergency
The conditions for withdrawing EPF funds for medical reasons are flexible. Members can withdraw anytime, even immediately after joining. As per Para 68J of the EPF Scheme, 1952, EPF advance can be withdrawn as many times as required. This facility is a great support for employees who are facing sudden medical emergencies.
You can withdraw a large part of PF even a year before retirement
If a member wants to withdraw the amount a year before retirement, then as per Para 68NN of the EPF Scheme, 1952, he is allowed to withdraw up to 90% of the total PF corpus a year before retirement, and the member can do it only once. This is an important financial option for those who are planning their retirement.
Help will be available in purchasing equipment
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 including interest, or cost of equipment, whichever is less, is allowed. Members can withdraw money every three years to purchase equipment to reduce the suffering caused by disability. This facility helps Divyang employees to purchase necessary equipment and lead a better life.
Know when you can withdraw the entire amount
According to the news of media, in case the company/institution is closed for more than 15 days, and when the employees become unemployed without any compensation, the members can withdraw the employee’s share, including 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. This facility is like a safety net for employees who suddenly lose their jobs.
You can also withdraw money from the PF to repay the loan
To repay the outstanding principal and interest on the loan taken for buying/constructing or repairing a house, members can withdraw money as per Para 68BB of the EPF Scheme, 1952, if the PF account holder has been an EPF member for at least 10 years. Members can withdraw 36 months of basic salary and DA, or the total share of the employee and employer, including interest, or the total outstanding principal and interest, whichever is less. This facility is beneficial for those who want to reduce their home loan burden.