Big Relief for Salaried Employees! You Can Now Withdraw 100% of Your PF Money – Know the New Rules
EPF Withdrawal Rules: In a significant move providing relief to millions of salaried individuals across the country, the central government has eased norms related to the Employees’ Provident Fund (EPF). Subscribers can now, under specific conditions, withdraw the entire amount accumulated in their PF account. This decision is a major boon for employees facing financial hardships, particularly due to job loss or urgent medical needs. The Employees’ Provident Fund Organisation (EPFO) manages this retirement savings scheme, which is a crucial financial safety net for the working class.
Understanding the Key Withdrawal Provisions
While the EPF is primarily a long-term retirement fund, the government allows for withdrawals to meet specific financial requirements. The provision for 100% withdrawal is not a blanket rule for everyone but is applicable under certain defined circumstances. Understanding these conditions is crucial before you plan to access your entire retirement corpus.
The most common condition for a 100% PF withdrawal is unemployment. If an EPF member remains unemployed for more than two months, they are eligible to withdraw their full PF balance. To do this, the individual must declare that they have been unemployed for over 60 days. This rule provides critical financial support to individuals during their job search period.
When Can You Withdraw Your PF Money?
Apart from unemployment, the EPFO allows for partial or full withdrawals for various other reasons. These advances can help you manage significant life events without financial stress. Here is a breakdown of the primary reasons and their respective withdrawal limits.
| Reason for Withdrawal | Withdrawal Limit & Conditions |
|---|---|
| Unemployment | After one month of unemployment, you can withdraw up to 75% of the total PF balance. The remaining 25% can be withdrawn if unemployment continues for more than two months, effectively allowing for 100% withdrawal. |
| Medical Emergency | For specific medical treatments for self, spouse, children, or parents. You can withdraw up to 6 months’ basic salary and Dearness Allowance (DA) or the employee’s total share with interest, whichever is less. There is no lock-in period or minimum service requirement. |
| Home Purchase or Construction | For buying a plot, or purchasing/constructing a house. The member must have completed at least 5 years of service. The withdrawal amount is limited to 24 times the monthly basic salary for a plot and 36 times for a house. You can also withdraw up to 90% of the EPF balance. |
| Higher Education or Marriage | For the higher education of children or for your own/sibling’s/child’s marriage. The member must have completed 7 years of service. Up to 50% of the employee’s share with interest can be withdrawn. |
How to Apply for PF Withdrawal Online
The process to claim your PF has been simplified and can be done online through the EPFO portal. Here are the basic steps:
- Log in to the UAN Member e-Sewa portal using your Universal Account Number (UAN) and password.
- Ensure your KYC details (Aadhaar, PAN, and bank account) are verified and linked to your UAN.
- Go to the ‘Online Services’ tab and select ‘Claim (Form-31, 19, 10C & 10D)’.
- Verify your bank account details displayed on the screen.
- Proceed for the online claim and select the type of claim you want to file (e.g., ‘PF Advance (Form 31)’ for partial withdrawal or ‘PF Final Settlement (Form 19)’ for full withdrawal).
- Select the reason for the advance and enter the required amount. You may need to upload scanned copies of relevant documents like a cheque or passbook.
- Submit the application after authentication via an Aadhaar-based OTP.
Once submitted, the claim is processed by the EPFO, and the amount is credited directly to your registered bank account. These relaxed norms are designed to make your hard-earned savings more accessible during times of genuine need.