Big news for EPFO members. There are several rules established by the Employees’ Provident Fund Organization (EPFO) regarding the withdrawal of funds from your Employees’ Provident Fund (PF) account. Accessing this money can be quite beneficial during challenging times. Let’s explore the different scenarios in which you can withdraw specific amounts from your PF account.
In a state of unemployment
If an employee is unemployed for over a month, they are eligible to withdraw 75% of their PF balance.
When the company is closed
Should a company or factory cease operations for six months, the employee can access their entire PF balance. However, if the company resumes operations, the withdrawn amount must be repaid in 36 installments.
In case of layoff
If an employee is laid off, they can withdraw 50% of their PF funds. Proof of unemployment is required when making this request.
At work stoppage
In the event of an emergency that halts company operations for more than 15 days, the employee can withdraw 100% of the funds in their PF account.
Options on retirement
Upon retirement, employees have two choices. They can either withdraw the full amount of their PF account in one go or opt for a monthly pension (EPS), which provides a fixed monthly income.
