For Salaried Employees

Can we partially withdraw from EPF (Employee Provident Fund) ?

Most of us know that we can either transfer or withdraw epf amount when we change the organization. But, do you know that on special occasions you can also withdraw some money from your EPF account. Usually when we badly need money, we look for personal loans where interest rates quite high , if you need money for some special circumstances, then you can go for partial withdrawals from your EPF and you are not required to refund this amount.

Which purpose partial withdrawals are supported

If you are having below circumstances you can withdraw specific amount from EPF.

  • Purchase of Plot
  • Purchase of house/Flat
  • Alteration / Repair of House
  • Repayment of Housing Loan
  • Medical Treatment
  • Marriage / Education

To Purchase Plot :

To avail this facility Minimum you should complete total 5 years of service (not required from same employer) and  Only once in your lifetime you can use this facility.

The purpose of purchase of a site for construction of house thereon, the amount of withdrawal shall not exceed the member’s basic wages and dearness allowance for twenty four months  of the member’s own
share of contributions, together with the employer’s share of contributions with interest thereon or the actual cost towards the acquisition of the dwelling site, whichever is the least.

To Purchase House / Flat:

Minimum you should complete 5 years service and house should be registered on your name or spouse name or jointly.

The purpose of acquisition of a ready built house/flat or for construction of a house/flat, the withdrawal shall not exceed the member’s basic wages and dearness allowance for thirty six months or the member’s own share of contributions, together with the employer’s share of contributions, with interest thereon, or the total cost of construction, whichever is the least.

For Alteration / Repair of House:

To avail this facility  property should be name of self , spouse or jointly . For alteration of house ,it should be minimum 5 years old house. for repair , house should be 10 years old. Minimum amount you can withdraw is 12 times of your contribution together with employers share , with interest,

epf withdraw

To Repay House Loan:

Minimum you should complete 10 years service to use this facility and only once in lifetime you can use this.

For repayment of loans amount of withdrawal shall not exceed the member’s basic wages and dearness allowance for thirty  six months or his own share of contributions together with the employer’s share of contributions, with interest thereon, in the member’s account in the Fund or the amount of outstanding principal and interest of the said loans, whichever is least.

For Medical Treatment:

Funds for illness in certain cases we can withdraw  EPF, for this below conditions must be satisfied.

(a) patient should be hospitalized  for one month or more, or
(b) major surgical operation in a hospital, or
(c) suffering from T.B., leprosy, [paralysis, cancer, mental derangement or heart ailment] and having been granted leave by his employer for treatment of the said illness.

The amount for this  shall not exceed the member’s basic wages and dearness allowance for six months or his own share of contribution with interest in the Fund, whichever is less and no minimum service is required to avail this facility. It include self ,spouse, kids and parents.

For Marriage and Education:

Marriages or post-matriculation education of children , provident fund account not exceeding fifty percent of his or her own share of contribution, with interest thereon, standing to his or her credit in the Fund, on the date of such authorization, for his or her own marriage, the marriage of his or her daughter, son, sister or brother or for the post-matriculation education of his or her son or daughter

Minimum 7 years of service is required to avail this facility.  Total three times you can use this for withdrawal.

The above are major circumstances wherein you are allowed to partially withdraw amount from your EPF.

To get more detals on EPF and how it works, you can check our earlier article “How EPF (Employee Provident Fund) makes you Rich“.

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About Sravanthi

Hi ..I am Sravanthi, working in IT field and i'm more passionate about managing personal finance. I am writing this blog to help people especially salaried employees to invest their money wisely . Check out the articles ..happy reading :)

Discussion

One thought on “Can we partially withdraw from EPF (Employee Provident Fund) ?

  1. is it possible to withdraw the PF for the reason to Pay outstandings of credit cards as they are incurring huge amount of interest rates

    Posted by Ashwin | May 20, 2015, 7:35 am

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