There are different types of EPF advance that members can apply. Check 10 reasons for which you can withdrawal partial money from EPFO
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The Employees' Provident Fund (EPF) is a compulsory savings and retirement plan for employees. This plan serves as a financial safety net, providing employees with a lump sum corpus after retirement.
While the primary purpose of the EPF is retirement savings, it has provisions for premature withdrawals. Premature withdrawal is permitted under specific circumstances such as marriage, education or medical emergencies.
Employees should use Form 31 to request an advance withdrawal of funds from their EPF accounts. The form is available on the official UAN portal.
There are different types of EPF advance that members can apply. Check 10 reasons for which you can withdrawal partial money from EPFO
EPF members are eligible to get an advance for their own marriage as well as that of their sons, daughters, brothers and sisters. Account holders can withdraw up to 50 per cent of the savings to cover costs related to marriage. Members can make this withdrawal only after contributing for a minimum of 7 years towards the EPF account. Employees can take no more than three advances for marriage.
EPF account holders can withdraw up to 50 per cent of their total contribution to the EPF to cover the children's higher education or education costs after class 10. Members can make this withdrawal only after contributing for a minimum of 7 years towards the EPF account. Employees can take no more than three advances for education.
The EPFO allows withdrawal of 90 percent of the EPF corpus one year before retirement. The person must not be less than 54 years. This partial withdrawal is allowed under Paragraph 68NN of the EPF Scheme, 1952.
If the company you are working for is closed for more than 15 days then you can withdraw the entire share deposited as EPF. If you have lost your job and you want to withdraw the funds only after a month, you can withdraw up to 75 per cent of the amount. The remaining 25 percent can be transferred to a new EPF account after getting a new job. But if you remain unemployed for two months continuously then you can withdraw the entire PF amount.
EPF advance could be taken for buying or constructing a house, repaying the home loan, purchasing a site or plot, renovating the house or repairing the house. The person is qualified to withdraw the money after completing their five years of service.
Members can withdraw a part of their provident fund in case of a medical emergency. In case of medical emergencies members can make a withdrawal of up to Rs 1 lakh.
The EPFO allows members to request an advance for disability under Paragraph 68-N of the EPF scheme. Physically handicapped members can take advance payment to purchase equipment to minimise hardship on account of disability.
Members can take an advance from the EPF account to invest in the Varishta Pension Bima Yojana. Members can withdraw up to 90 percent of their EPF balance after turning 55 to invest in the Varishta Bima Yojana.
If a factory or similar establishment remains closed for more than six months then the member can withdraw 100 per cent of the employer’s contribution and interest if he continues to remain unemployed.
A member may be allowed an advance from the EPFO account if the electricity supply to a factory where he is employed is cut.
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