Unspecified conditions: the Employees’ Provident Fund Organisation (EPFO) allows withdrawal to its members on the Provident Fund (PF) balance. Retirement savings through PF are made, but EPFO allows withdrawals in special cases, as described in the next five points. Below are the five conditions under which PF withdrawal is possible:
1. Retirement (On Achieving 58 Years Of Age)
The most common reason for PF withdrawal is that people become entitled to withdraw 100% from their PF accounts, along with the amount of the employer contribution, when they complete age 58 years. 90% can be withdrawn by any retiree above 55 years of age for one year before retirement.
2. Unemployment For Two Months Or More
Employees who have been without any job for a period of two months or more will be able to withdraw 75% from their respective PF accounts. The residual 25% can be encashed after one month of further unemployment. The employee has to obtain AADHAAR linked UAN (Universal Account Number) and then apply online through the EPFO portal.
3.Medical Emergencies
EPFO has a provision that one can entirely or partially withdraw from PF for medical treatment expenses, which can be availed in the case of the employee, spouse, children, or parents being severely ill or hospitalized or due to surgery. There is no minimum period that the employee has to be employed to withdraw up to a maximum of six months’ basic salary or his total PF balance, whichever is less.
4.Repayment Of Home Loan Or Purchase Of Property
Withdraw from the PF account up to 90% of the PF balance from employees with five years of tenure for buying, constructing, or repaying a loan for a home. The property should be registered in the name of the employee, spouse, or joint ownership, and depending on the purchase of property, that amount varies.
5. Marriage Or Educational Expenses Partial
withdrawals are allowed by EPFO for marriage or higher education for the employee, his children or siblings, or dependent family members. Employees who have completed seven years of service can access up to 50% of their PF balance for such purposes. This benefit can be claimed three times in the service life of an employee.
What Is The Process Of Applying For PF withdrawal?
Employees can apply for their PF withdrawal online via the EPFO Member Portal by giving in their UAN login details. The employee will then have the following process of linking Aadhaar, PAN, and bank details. Withdraw request processing usually takes around 8 to 15 days.
Conclusion
PF savings are mainly intended towards retirement and some limited withdrawals in emergencies, as well. Understating the conditions of PF withdrawals can help employees manage financial requirements in a responsible fashion without sacrificing long-term savings.
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