All You Need To Know About EPF Partial Withdrawal Rules

All You Need To Know About EPF Partial Withdrawal Rules

In some conditions, the Employees’ Provident Fund (EPF), a government-managed pension scheme run by the Employees’ Provident Fund Organization (EPFO), enables contributors to only make partial withdrawals or advances from the PF account. Before retirement and for particular purposes such as marriage, education, or to cover emergency medical expenses for yourself, your partner, children, or dependent parents, repayment of a home loan, purchasing a home or home reconstruction, and so on one can withdraw a portion of his or her EPF corpus. EPF Form 31 is used to submit a request for a partial withdrawal of funds from the EPF. As a result, we’ve outlined the rules and conditions under which a person can use EPF Form 31 to make a partial withdrawal from the EPF.

EPF Partial Withdrawal Rules

EPF partial withdrawal rule in case of unemployment: In the event of a job loss, an EPF subscriber can make a partial withdrawal up to 75% of his or her EPF balance after one month of unemployment, whereas the remaining 25% is allowed for withdrawal if the unemployment lasts for another month.

EPF partial withdrawal rule for purchasing a land, a new house or construction: An amount up to 24 times an individual’s monthly salary and dearness allowance can be withdrawn for land purchase. Individuals can withdraw up to 36 times their monthly salary and dearness allowance for home purchases. The land or house must be purchased in the individual’s name, his or her spouse’s name, or jointly. To make a partial withdrawal, though, he or she must have completed 5 years of continuous service.

 EPF partial withdrawal rule for education: Employees can withdraw up to 50% of the contribution to finance the education cost of their own or their children after class 10th. As a result, up to 50% of the contributions can be withdrawn three times for marriage or education and for the same the subscriber must have completed 7 years of continuous service.

EPF partial withdrawal rule for marriage: A PF advance can be made in the case of self, a child’s marriage, or a brother’s or sister’s marriage. A maximum PF withdrawal of 50% of the employee’s contribution is allowed. Subscribers must complete a period of 7 years of service to be eligible for this benefit.

EPF partial withdrawal rule for home renovation: Consequently, PF can be withdrawn for a home renovation, but the subscriber must have completed 5 years of service. As a result, a subscriber can withdraw up to 12 times his or her salary for repairing and renovating his or her house, and up to 24 times his or her salary for purchasing a site or plot of land.

EPF partial withdrawal rule for medical treatment: You can withdraw funds from your PF account to pay for medical care for yourself, your partner, your parents, or your children. The subscriber has the option of withdrawing six months’ basic wages and Dearness Allowance (DA) or employees’ contributions with interest, whichever is low. As a result, a person can withdraw up to six times his or her salary for medical costs. Furthermore, there is no requirement for a minimum period of service or employment.

EPF partial withdrawal rule for home loan repayment: If the subscriber has completed 10 years of service, he or she can withdraw up to 90% of both the employee’s and employer’s contributions. Remember that the property must be declared under the employee’s or spouse’s name, or jointly. As a result, up to 36 times the subscriber’s salary can be withdrawn for the repayment of a home loan.

EPF rule to make a partial withdrawal before retirement: After reaching the age of 57, an amount of up to 90% of the accumulated corpus, including interest, can be partly withdrawn.

Source:-goodreturns

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