PF Account Withdrawal Rules: Here's How Much You Can Withdraw and What You Need to Know About EPFO’s Latest Updates
The Employee Provident Fund Organisation (EPFO) plays a crucial role for salaried individuals in India, managing their provident fund (PF) accounts. Under this system, employees contribute a fixed portion of their salary to the PF account, matched by their employer, and EPFO offers annual interest on the accumulated sum. While the money is typically withdrawn upon retirement, certain conditions allow partial withdrawals during employment. But how much can you withdraw and under what circumstances? Let’s break down the key rules and recent changes to PF withdrawal policies that every employee should be aware of.
Withdrawal Up to 50% After 7 Years of Employment
Employees can withdraw up to 50% of their PF balance if they have completed at least 7 years of service. This withdrawal can be used for specific needs, including higher education, weddings, or home renovations, offering flexibility to salaried workers.
90% Withdrawal for Home Purchase After 5 Years
For those planning to purchase a home, the EPFO allows employees to withdraw up to 90% of the total PF balance, provided they have completed at least 5 years in service. This large withdrawal is aimed at helping individuals achieve homeownership without financial strain.
Medical Emergencies: Full Withdrawal Plus Interest
In cases of medical emergencies, employees are allowed to withdraw their entire PF balance, including interest. Additionally, they can withdraw up to six times their monthly salary to cover urgent medical expenses, ensuring financial support during critical situations.
Advance Withdrawal Increased to ₹1 Lakh
Previously, employees could withdraw up to ₹50,000 as an advance in urgent situations. However, this limit has been increased to ₹1 lakh, providing greater financial assistance in times of emergency or unforeseen circumstances.
Special Conditions for Immediate Needs
Apart from the standard rules, the EPFO allows specific advance withdrawals for emergencies like natural disasters or pandemics. These withdrawals are designed to provide immediate relief to employees facing sudden financial crises.
