EPFO: Employees Provident Fund Organization is a big government platform in itself. It manages the Employees Provident Fund (EPF). EPF i.e. which provides financial security for Indian citizens working in the organized sector.
Provident Fund means the contribution of both the employer and the employee are added to it. These are then given to employees to cover post-retirement expenses. However, there are some rules by which employees can withdraw money before completion of time.
Rules for withdrawing money from provident fund
When a person retires, he has the right to withdraw the PF. However, under certain conditions individuals can withdraw partial amount from their PF account before its maturity. Here you are being told about some conditions, which will allow a person to withdraw the amount prematurely.
1. In case of unemployment
If a person having a PF account becomes unemployed and does not have any work for more than a month, then he can take up to 75% of the entire deposit. If the unemployed time lasts for more than two months, the account holder can withdraw the last 25% additionally under this section.
2. For higher studies
From the total employees contribution to EPF, individuals can withdraw 50% from their account to pay for further studies or to bear the education cost of children after class 10th. After contributing to the EPF account for at least 7 years, the money will be transferable.
3. For marriage
Recently it was found that a person can withdraw up to 50% of PF money for marriage expenses. The bride and groom should be either son, daughter, brother or sister of the person concerned or the account holder. However, this provision cannot be used until 7 years of PF contributions have been made.
4. For people with disabilities
As per the PF Withdrawal Rules 2023, holders of disabled accounts are allowed to withdraw 6 months’ basic salary and dearness allowance, or employee’s share (whichever is less) along with interest.
5. Medical Requirements
The PF or EPF account holder can also make withdrawals from his EPF balance to cover the cost of urgent medical care for several ailments. This facility is permitted to pay for self use and treatment of immediate family members. He can withdraw six months’ basic salary, dearness allowance, or employee’s share and interest, whichever is less.
6. Pay off outstanding debt
People can withdraw their full employee and employer contribution and interest, or 36 months of their basic salary plus dearness allowance, to pay their home loan EMIs. However, this option is available only after contributing to the EPF account for at least 10 years.
7. Buying a house or land
The account holder can make early withdrawals as per the PF withdrawal rules to buy vacant land or a prefabricated house.
8. For home repairs
The new provident fund rules include a provision allowing withdrawal from the employee’s share for house repairs, with interest and 12 months’ basic pay + dearness allowance.
