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EPF Withdrawal Rules

EPF can be withdrawn entirely upon retirement or after two months of unemployment. Partial withdrawals are allowed for specific reasons such as medical needs, marriage, education, land purchase, home loan repayment, and house renovation, each with defined limits and service requirements. For partial withdrawals, the employee must meet certain criteria, including years of service and the purpose of the withdrawal.

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27 views2 pages

EPF Withdrawal Rules

EPF can be withdrawn entirely upon retirement or after two months of unemployment. Partial withdrawals are allowed for specific reasons such as medical needs, marriage, education, land purchase, home loan repayment, and house renovation, each with defined limits and service requirements. For partial withdrawals, the employee must meet certain criteria, including years of service and the purpose of the withdrawal.

Uploaded by

vishu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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What's the Limit on PF Withdrawal Amount?

One may choose to withdraw EPF entirely or partially.

1. Complete Withdrawal

EPF can be withdrawn entirely only under the following two circumstances:

 Retirement: Upon retirement, you can withdraw the full accumulated corpus.

 Unemployment: If you are unemployed for over 1 month, you can withdraw up to 75% of the balance. After 2
months of unemployment, you can withdraw 100% of PF balance.

Note: For withdrawing 100% of PF amount, the person should have remain unemployed for at-least 2 months. This
has to be noted by person who is withdrawing PF amount, who is unemployed only for the interim period (transition
between companies).

2. Partial Withdrawal

Partial withdrawal of EPF balance can be made only under certain reasons. There are limits fixed for aforesaid reasons.
They are explained in detail below:

Medical Purposes

 Limit: Up to 6 times the monthly basic pay. If the contribution + interest is less than 6 months of basic pay,
only the available contribution and interest can be withdrawn.

 Years of Service Required: No criteria.

 Other Conditions: For medical treatment of the employee, spouse, children, or parents.

Marriage

 Limit: Up to 50% of the employee’s share of the EPF contribution.

 Years of Service Required: 7 years.

 Other Conditions: For the marriage of the employee, their son, daughter, or sibling.

Education

 Limit: Up to 50% of the employee’s share of the EPF contribution.

 Years of Service Required: 7 years.

 Other Conditions: For the employee’s education or the education of their child (post-matriculation).

Purchase of Land or House Construction

 Limit:

 Land: Up to 24 times the monthly basic salary plus dearness allowance.

 House construction: Up to 36 times the monthly basic salary plus dearness allowance.

 Total withdrawal is restricted to the actual cost of land or house.

 Years of Service Required: 5 years


Home Loan Repayment

 Limit: The lesser of the following:

 Up to 36 times the monthly basic salary plus dearness allowance.

 Total corpus (employee and employer contributions with interest).

 Total outstanding principal and interest on the housing loan.

 Years of Service Required: 10 years.

House Renovation

 Limit: The lesser of the following:

 Up to 12 times the monthly basic salary and dearness allowance.

 Employee’s contribution with interest.

 Total cost of the renovation.

 Years of Service Required: 5 years.

 Other Conditions:

 The property must be in the name of the employee or jointly with the spouse.

 The withdrawal is allowed twice:

 After 5 years of the house’s completion.

 After 10 years of the house’s completion.

Partial Withdrawal before Retirement

 Limit: Up to 90% of the accumulated balance with interest.

 Years of Service Required: The employee must be at least 54 years old.

 Other Conditions: The withdrawal must occur within one year of retirement or superannuation.

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