The Employees’ Provident Fund Organization (EPFO) has recently updated its withdrawal rules. This means you can now access your hard-earned savings more flexibly. Let’s delve into the latest regulations and understand how you can utilize your EPF funds.
Key Changes in EPFO Withdrawal Rules 2024
Enhanced Medical Withdrawal Limit: You can now withdraw up to Rs 1 lakh for medical emergencies for yourself or your family members. This is a significant increase from the previous limit of Rs 50,000.
Relaxed Withdrawal Conditions: The EPFO has eased the conditions for partial withdrawals. You can now withdraw funds without a strict contribution period, making it easier to access your money when you need it.
When Can You Withdraw from Your EPF Account
Medical Emergencies
Maximum Limit: Rs 1 lakh
Eligibility: No minimum contribution period
Marriage Expenses:
Maximum Limit: 50% of your contribution (plus interest)
Eligibility: Minimum 7 years of contribution
Frequency: Can be availed three times
Children’s Education
Maximum Limit: 50% of your contribution (plus interest)
Eligibility: Minimum 7 years of contribution
Frequency: Can be availed three times
Home Purchase or Construction
Maximum Limit: 90% of both employee and employer contributions (plus interest)
Eligibility: Minimum contribution period
Conditions: Property should be in the name of the employee or spouse
Frequency: Can be availed once
Home Renovation
Maximum Limit: 12 times your monthly salary (basic + DA)
Eligibility: Minimum 5 years of contribution
Frequency: Can be availed twice with a 10-year gap
Conditions: Property should be in the name of the employee or spouse
Home Loan Repayment
Maximum Limit: Up to three years’ salary (basic + DA)
Eligibility: Minimum 10 years of contribution
Conditions: Property should be in the name of the employee or spouse
Frequency: Can be availed once
Pre-Retirement Withdrawal
Eligibility: Age above 54 years
Maximum Limit: 90% of the total PF balance
Job Loss
Maximum Limit: 75% of your contribution (plus employer’s share and interest) can be withdrawn immediately. The remaining 25% can be withdrawn in the next two months.
Tax Implications: No tax is levied on this withdrawal.
How to Apply for EPFO Withdrawal
You can apply for EPFO withdrawal online through the Unified Portal (Unified Portal for EPFO). Here’s a brief overview of the process:
Register on the portal: Create an account using your UAN (Universal Account Number) and Aadhaar number.
Submit claim: Fill out the online claim form, providing the required details and documents.
Verification: Your claim will be verified by your employer and EPFO authorities.
Disbursement: Once approved, the withdrawal amount will be credited to your bank account linked to your UAN.