Hi, An employee can withdraw the full amount of PF accumulated in their EPF once they retire. However, he can also make premature withdrawals from the EPF account after meeting certain conditions. Full Withdrawal In the following two conditions, full EPF can be withdrawn: When an employee retires WhRead more
Hi,
An employee can withdraw the full amount of PF accumulated in their EPF once they retire. However, he can also make premature withdrawals from the EPF account after meeting certain conditions.
Full Withdrawal
In the following two conditions, full EPF can be withdrawn:
When an employee retires
When the employee remains unemployed for more than two months. To make a withdrawal on this circumstance, the individuals must get an attestation from a gazetted office.
However, if the employee joins another organization within two months then he cannot make a complete withdrawal of the EPF balance.
Partial withdrawal
Under the following circumstances, partial withdrawal can be possible:
Sl. No.
Reasons for withdrawal
Limit for withdrawal
No. of years of service required
Other conditions
1
Medical purposes
Lower of below:
No criteria
Medical treatment of self, spouse, children, or parents
i. Six times the monthly basic salary, or
ii. The total employee’s share plus interest,
2
Marriage
Up to 50% of employee’s share of contribution to EPF
7 years
For the marriage of self, son/daughter, and brother/sister
3
Education
Up to 50% of employee’s share of contribution to EPF
7 years
Either for account holder’s education or child’s education (post matriculation)
4
Purchase of land or purchase/construction of a house
For land – Up to 24 times of monthly basic salary plus dearness allowance.
5 years
i. The asset, i.e. land or the house, should be in the employee’s name or jointly with the spouse.
For house – Up to 36 times of monthly basic salary plus dearness allowance,
ii. It can be withdrawn just once for this purpose during the entire service.
The above limits are restricted to the total cost.
iii. The construction should begin within 6 months and must be completed within 12 months from the last withdrawn instalment.
5
Home loan repayment
Least of below:
10 years >
i. The property should be registered in the name of the employee or spouse or jointly with the spouse.
i. Up to 36 times of monthly basic salary plus dearness allowance, or
ii. Withdrawal permitted subject to furnishing of requisite documents as stated by the EPFO relating to the housing loan availed.
ii. Total corpus consisting of employer and employee’s contribution with interest, or
iii. The accumulation in the member’s PF account (or together with the spouse), including the interest, has to be more than Rs 20,000.
iii. Total outstanding principal and interest on housing loan
6
House renovation
Least of the below:
i. Up to 12 times the monthly wages and dearness allowance, or
ii. Employee’s contribution with interest, or Total cost.
5 years
i. The property should be registered in the name of the employee or spouse or jointly held with the spouse
ii. The facility can be availed twice:
a. After 5 years of the completion of the house,
b. After the 10 years of the completion of the house
7
Partial withdrawal before retirement
Up to 90% of accumulated balance with interest
Once the employee reaches 54 years and withdrawal should be before one year of retirement/superannuation (retirement fund for employees by the company)
Hi, An employee can withdraw the full amount of PF accumulated in their EPF once they retire. However, he can also make premature withdrawals from the EPF account after meeting certain conditions. Full Withdrawal In the following two conditions, full EPF can be withdrawn: When an employee retires WhRead more
Hi,
An employee can withdraw the full amount of PF accumulated in their EPF once they retire. However, he can also make premature withdrawals from the EPF account after meeting certain conditions.
Full Withdrawal
In the following two conditions, full EPF can be withdrawn:
However, if the employee joins another organization within two months then he cannot make a complete withdrawal of the EPF balance.
Partial withdrawal
Under the following circumstances, partial withdrawal can be possible:
i. Up to 12 times the monthly wages and dearness allowance, or
ii. Employee’s contribution with interest, or Total cost.
ii. The facility can be availed twice:
a. After 5 years of the completion of the house,
b. After the 10 years of the completion of the house
Plz feel free to ask more questions.
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