There are various reasons one may find it relevant for EPF withdrawal. However, it may meet the framed criteria or not. Depending on various factors, the confirmation is accepted or rejected. So, let’s know more about EPF Withdrawals, and it’s other purposes.
What Do You Mean By EPF Withdrawals?
EPF is a long term investment for your future or any emergency caused. You, as well as your employer, must regularly contribute to maintaining its accessibility. Apart from that, the interest also gets added up. This amount gets gathered up for a long time, and at the time of your retirement or demise, you or your family member avails it.
However, not every employee can apply for EPF Withdrawals. Certain eligibility criteria are followed. Let’s look forward to it.
Situations When You Can Withdraw From Your EPF Account
Mentioned below are the situations when you can withdraw from your EPF account-
1. Medical Expenses
Suppose you’ve already subscribed to health insurance, then it’s all good. But in case you haven’t, where shall you get money from? The hospital, surgery, medicine charges these days are way exorbitant. Meeting them without a policy is quite impossible. But since you don’t have any time for making policy, the only option is EPF.
You’re eligible to withdraw your EPF amount for these reasons-
- In case of major surgery in the hospital.
- If your hospitalization period is more than a month.
- If you’re suffering from TB, Cancer, paralysis, etc. you can get medical leave from your employer.
Medical reasons are always genuine. It is very much related to the life and death of a person. So, certainly, it would require fewer criteria to get withdrawn. Thus, you don’t need any specific mandatory service periods to avail of the withdrawal for medical causes. You’re free to withdraw even if you’ve served only for a period of 1 or 2 years.
The medical fees are always too extravagant for a commoner. But since, there lie some rules of EPF as well. You can withdraw an amount only up to 6 months of your basic wage.
For this, you need to fill the form-31. Mentioned below are certain documents that you must keep in hands with you-
i. A certificate from your employer. The certificate must state that the offered benefits will not be available to him anymore. Otherwise, another certificate furnished by the Employees’ State Insurance Corporation. It must show that you’re no longer eligible for any financial aid issued by the Employees’ State Insurance Corporation.
ii. Another one is a certificate from your doctor. It must state that you’re getting hospitalized for a month or more. It must also mention any surgeries if you’re or you’ll be going through.
2. Marriage Purposes
In case it’s your marriage or your sibling or any family member, it requires huge expenditure. You may not have that amount in your hand at that time. During such emergencies, you can avail up to 50% of your total amount. You can avail of this for up to 3 months. Applicable cases are-
- Your marriage
- Your son/daughter’s marriage
- Brother/sister’s marriage
3. Repaying Home Loan
Suppose you’ve taken a home loan, and you’re unable to repay the premiums every month. Thus, withdrawing EPF is a good life savior for you. To avail of this, you must have served 10 years of service. You can also withdraw loans for the construction of houses. Yet, you can’t put up two reasons for the withdrawal. Like, either a home loan or construction/purchase of the property.
The property must be in your name or jointly with your spouse or her name. Many subscribers have a joint account with their siblings or spouse. In that case, you’re eligible to withdraw an amount equivalent to 36 times your monthly wage or even 90% of your total balance. Thus, you can easily make way for your home loan repayment out of it. Isn’t it?
4. Higher Education Purpose
You can also withdraw your EPF amount for educational purposes. It can be your sibling or brother/sister. Yet, it’s applicable in the case of higher education only. It means if you’re getting your daughter admitted to a college and you need money for her college fees. Thus you’re eligible to withdraw. However, you must complete 7 service years for this proposal.
5. Renovation Of Your Existing House
After about every 4-5 years, you must be getting bored with your home designs. Isn’t it? You need to renovate your house. For everything, you need money. So, EPF is a concrete base to withdraw money in such cases. But before that, pay heed to a few important points-
- In such situations, you can withdraw an amount equivalent to 12 months of your monthly wage.
- The house you’re renovating must be at least 5 months old, from the date of construction.
- You must have served your company for at least 10 years.
- The property must be in your name or joint account with your wife/sibling, etc.
- The most important point is that you cannot repeat it once you avail of this in your service period. It means it’s a once in a service period offer.
6. For The Build-Up Of A New House Or Purchase Of Property
For the construction or purchase of a new property, it requires huge capital. For that, you can partially withdraw money from your EPF. However, for that, you must be the property owner, or it must be as joint property with your spouse. Added to that, you must have rendered 5 service years to the organization.
The money you’re eligible to withdraw is about 24 times your basic salary if you’re buying a property. However, for construction purposes, it is 36 times your monthly wage. There also lies an option between the total property cost or yours and your employer’s total contribution share, with interest added. The lower amount gets handed over.
There are rules framed by the EPFO for the employees during their unemployment as well. For example, if you’re employed for one month or more, you’re eligible to extract about 75% of your EPF amount. The rest 25% you can withdraw after unemployment of 2 months or more.
This is the most known reason for EPF withdrawal. If you’re 58 years or more and retired, you can withdraw the entire amount from your EPF corpora. However, for that, make sure you’ve served for 10 service years. Before 1 year of retirement, you’re free to withdraw about 90% of your EPF amount.
After withdrawing, you must be anxious to know your EPF balance online. Isn’t it? Just like all other online pieces of stuff, you can also carry this out online. For that, you need to down your EPF passbook online. There are few steps mentioned below on how you can download your EPF passbook online.
Eligibility To Apply For EPF Withdrawal
For every task or exam to apply for, there are certain eligibility criteria. Similarly, to withdraw EPF from your account, you must content these conditions-
- You must bear an active Universal Account Number (UAN).
- You must have linked your Aadhar number with UAN.
- Your bank account must be seeded with UAN with the IFSC number.
You need not submit any documents during issuing for the withdrawal of the EPF. However, you must keep with you a scanned copy of the cheque. You must provide correct bank details; else, it shall get rejected. You will have to upload it online while applying for EPF Withdrawals online. Moreover, during this pandemic, it is risk-free and easier to apply online.
Criteria That Allows You To Withdraw PF
Even though the EPF is like a retirement savings account, still you can withdraw in certain cases like-
i. Renovation of your house or buying a new one.
ii. If you need to repay a loan you’ve taken.
iii. Granting of advances, i.e., any natural calamity or breaking down of your factory.
iv. Any serious illness, be it yours or any of your family members.
v. Yours or any of your family member’s marriage.
vi. Higher education purpose.
However, you’re about to retire within a year; you can withdraw the amount without any difficulty.
The EPF buries in itself many reasons to make use of. In other words, EPF is like a small piggy bank where you put your savings every month and get it when it breaks. It helps you meet financial aids after retirement. Added to this, there are so many other causes. Let’s look forward to it.
Many do not have the idea of withdrawing money from EPF account in times of need. Many think they can avail of this amount only when they change their job or after their retirement. Yet, the reason for your withdrawal must be strong. The causes may be marriage, illness, house, property, etc.
Important Point To Note:
If your EPF account is inactive or closed, it won’t work. So, make sure you have an active EPF account. For that, you need to submit your EPF contributions regularly.
Improvised EPF Withdrawal regulations For Covid-19
The Covid-19 has left shattered the entire world into pieces. With horrible economic losses, the health condition of millions of people is also at stake. With the sky-high price of petrol, veggies, etc. the world is mourning life. The lower sections get direct aid from the government. The richer class has its sturdy bucks in hand. It is the middle class who are the real sufferers.
During such a pandemic, our Indian Government holds the flag of responsibility. It has made several improvisations for the betterment of society. According to the rules, if you’re facing any financial issues during this pandemic, you can take advantage of the PF amount. You’re free to withdraw about 75% of your PF amount or your monthly salary of up to 3 months added up with DA. From the above, the one with a lower amount adheres to your pocket.
For example, if your PF amount is Rs. 1 lakh, 75% of this amount comes up to be Rs. 75,000. But, if your 3-month salary along with DA or Dearness Allowed is Rs. 74,000. You’re eligible to withdraw Rs. 74,000.
To gain more info and avail the opportunity, you can watch out on the EPF website or ask your employer.
1. I’ve served a company for 10 years. But now I want to quit my job and start something of my own with my spouse. From my last contribution to 36 months, my EPF remains accessible. Is there any way how I can contribute personally to my EPF account?
However, you may go for options like PPF, i.e., Public Provident Fund or NPF.
2. How can I know my EPF balance through SMS or call?
Just dial up the number 011-22901406 from your phone number that you’ve registered with your UAN number. After the call ends, you’ll get an SMS. It shows your amount in PF.
This procedure is entirely free. However, make sure your mobile number is linked with your Aadhar and PAN card.
ii. With SMS
It is the same as that of the miss call procedure except that the number here varies. You’ve to send a message “EPFOHO UAN” to the number 7738299899. This option is accessible in different languages like- English, Hindi, Telugu, Tamil, etc.
If your language is Tamil, you need to send “EPFOHO UAN TAM.” The EPFO replies to your PF amount and contribution. However, it’s accessible with your KYC information.
3. What is the minimum duration of joblessness to withdraw EPF?
So, from this article, you must have had a crystal clear idea about EPF Withdrawals and its other purposes. Added to that, you can easily access how to download and review your e-passbook. I hope this article helped in broadening your view.