EPFO withdrawal rules: How much PF can you withdraw for illness, marriage, education and unemployment?

New Delhi: Members of the Employees' Provident Fund Organisation (EPFO) have the provision to withdraw funds from their accounts. The retirement savings body, as per the latest revisions, allows EPF advances for specified needs.

In October of the previous year, 13 categories were merged into three, based on which a subscriber can apply for the withdrawal of funds: Essential needs, Housing-related needs, and Special circumstances.

Subscribers can withdraw both the employee's and the employer's shares if they qualify for it. The Central Board of Trustees (CBT) has given a nod to withdrawing 100 per cent of the eligible funds. The provision permits subscribers to withdraw 75 per cent of the total corpus in advance, while the remaining 25 per cent has to be mandatorily kept as the minimum balance.

In case of a job loss, however, the person can withdraw the remaining 25 per cent after being unemployed for 12 continuous months.

As per the latest framework, the EPFO has clarified the rules for EPF advances, describing the frequency of their withdrawal and the purposes to which those advances must pertain.

-- Essential needs

Illness: For health-related emergencies and other medical expenses of oneself or the family members specified by the EPFO, there is no limit to the number of times a withdrawal can be made.

Education: In case of education-related expenses, a person is allowed to withdraw up to 10 times from the total EPF balance during the entire membership period.

Marriage: A person may also withdraw money for marriage-related expenses of oneself or family members up to 5 times during the entire period of EPF membership.

-- Housing-related needs

 A subscriber may withdraw an amount from their EPF account up to 5 times during the period of EPF membership for the following purposes: purchase of a house, flat, or plot; construction of a house; repayment of a home loan; renovation, alteration, or improvement of a house/flat.

-- Special circumstances

A subscriber is allowed to take an advance from the EPF up to two times in a financial year for certain special circumstances notified by the Central Board of Trustees (CBT), EPF.

Members were earlier required to clarify the reason for partial withdrawal under special circumstances, which may include a natural calamity, continuous unemployment, an epidemic outbreak, etc.

Users must note that they are allowed to withdraw 75 per cent of their EPF balance, including the employer's and the employee's shares and the interest accrued, after completing 12 months of membership.

To make a premature withdrawal, a member is required to use EPF Form 31 for a partial amount. On the other hand, the final PF settlement requires Form 19. Using this, one can withdraw the entire balance.