EPF partial withdrawal possible in five situations.
Retirement fund body EPFO (Employees’ Provident Fund Organisation) has been making changes in EPF (Employees’ Provident Fund) rules to make it more user-friendly for its members. Last year EPFO allowed its members to withdraw up to 75 per cent of their EPF corpus after being unemployed for more than one month and remaining 25 per cent can be withdrawn after being unemployed for more than 2 months. Meanwhile, EPFO also allows partial withdrawal of EPF balance for various other purposes including self and children’s marriage, purchase of house, children’s education etc.
Here are the partial withdrawal rules of EPFO
Treatment of illness
An employee can withdraw up to 6 months of his basic salary and DA or his entire contribution, whichever is least for treatment of his own illness or treatment of family members. No specific membership period is required for this purpose. Only a certificate signed by employer and doctor need to be submitted to avail this advance.
Advance for marriage
An EPFO member can withdraw up to 50 per cent of his share with interest from his EPF accumulation for the purpose of marriage of self/ daughter/son/ brother/sister. One needs to be an EPFO member for at least 7 years to apply for this advance. The member needs to give a declaration in form 31 for this purpose.
Advance for post matriculation education of children
EPFO allows withdrawal of 50 per cent of a member’s share with interest for post-matriculation studies of his children. One must be an EPFO member for at least 7 years to apply for this advance. A certificate regarding course of study and estimated expenditure from the head of the institution is required to be submitted to avail this advance.
Advance for purchase of house/flat, construction of house
EPFO members are allowed to withdraw 24 month’s basic wages and DA for the purchase of land, 36 month’s basic wages and DA or total of employee and employer share with interest or total cost, whichever is least for the purchase of house/flat/construction. One has to be a member of EPFO for at least five years to avail this advance. An employee is allowed only one withdrawal for this purpose during his entire employment. Except for a declaration from the employee, no other document is required for obtaining this advance. An employee can take a loan for improvement/repair of an existing house owned by him or his spouse or jointly owned property.
Partial withdrawal for repayment of loans in special cases
An EPFO member can withdraw up to 36 month’s basic wage and DA or total of employee and employer share with interest or total outstanding principal and interest, whichever is least for repayment of loans in special cases. One has to be EPFO member for at least 10 years to avail this advance. An employee needs a certificate from the agency indicating outstanding principal and interest to apply for this partial withdrawal.