Illness, studies, marriage… For what purpose can you withdraw money from PF before retirement?

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Employees’ Provident Fund (EPF) is an important savings scheme for salaried employees. It provides them with financial security after retirement. PF not only provides financial security to employees after retirement but also provides financial assistance in special circumstances.

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Both the company and the employee contribute 12% of the basic salary every month to PF. PF can be withdrawn completely at the time of retirement. Not only this, in certain circumstances, partial withdrawal can also be made from the PF fund. The money deposited in PF is tax-free. Today we will tell you when and how partial withdrawal can be made from the PF fund.

All the money deposited in the PF fund can be withdrawn only in two situations. At the time of retirement and on becoming unemployed. If you are unemployed for more than 1 month, you can withdraw 75% of the outstanding amount. After 2 months of unemployment, you can withdraw 100% of the PF balance.

When can we withdraw?

Partial withdrawal can be done only in certain circumstances. To make partial withdrawal from PF, employees will have to fill Form No. 31. To withdraw PF, the employee’s UAN number should be active. Along with this, the mobile number linked by you should also be active. Apart from this, the employee’s Aadhaar card should be added to the EPFO ​​​​account database. Tell us when partial withdrawal from PF can be done.

PF money up to 6 times the monthly basic salary can be withdrawn for medical treatment of the employee, spouse, children or parents in case of illness
. If the contribution + interest is less than 6 months basic salary, then only the available contribution and interest can be withdrawn.

After seven years of service, 50% of the employee’s PF contribution can be withdrawn for marriage. An employee can withdraw money from PF for the marriage of his child, brother or sister .

Education

After seven years of service, an employee can withdraw 50% of his PF contribution for his education or his child’s education. For this withdrawal, it is necessary that the expenses of education after 10th standard are being met.

Construction of a house or purchase of land

For purchasing land, an employee can withdraw up to 24 times the monthly basic salary plus dearness allowance from his PF account. Also, for construction of a house, one can withdraw up to 36 times the monthly basic salary plus dearness allowance. This withdrawal is limited to the actual cost of the land or house. To withdraw money for these works, it is mandatory to work for at least five years.

Money can also be withdrawn from PF before retirement to repay the house loan for home loan repayment

. Up to 36 times the monthly basic salary and dearness allowance or the amount of the home loan including interest, whichever is less, can be withdrawn. But for this, the employee must have been in service for at least 10 years. Partial withdrawal from PF is also possible for house renovation.

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