Know under what circumstances you can withdraw your EPF money

The Employees Provident Fund Organisation (EPFO) is one of the World’s largest Social Security Organisations in terms of clientele and the volume of financial transactions undertaken. It provides a huge number of facilities for the benefit of the employees of an eligible organisation.

The EPFO also has a savings cum retirement scheme for the employees. The name of the scheme is the Employees’ Provident Fund (EPF), also referred to as PF (Provident Fund).

Under the EPF scheme, which is mandatory, an employee has to contribute 12% of his/her basic pay monthly and his/her employer also has to make a contribution of a matching amount to the employee’s PF account. This apart, the central government gives interest to the amount once in a year.

Though the EPF is a retirement scheme, you can withdraw your saving money on certain conditions. Below are the circumstances under which you can withdraw some percent of your EPF money (advances can be claimed through form 31):

Purchase of House/flat, construction of House including acquisition of site:

• Purchase of house/flat/construction of house including acquisition of site
• Purchase of site for construction of dwelling house/purchase of house/flat
• Purchase of dwelling house/flat on ownership
• Construction of house on a site owned by member/spouse/jointly by member & spouse
• For addition/alteration/improvement in house owned by member/spouse/jointly with spouse
• For addition/alteration/improvement/repair in house owned by member/spouse/jointly with spouse

Withdrawal from the fund for repayment of loans in special cases:

• For refund of outstanding principal and interest of a loan for purposes under Para.

Grant of Advances in special cases:

• In case of lockout/closure of establishment for more than 15 days, And The employees are rendered unemployed without compensation OR Employee has not received wages for more than 2 months continuously (for reasons other than strike.
• Discharge/dismissal/retire enchment of member challenged by him/her in Court
• In case of establishment’s closure for more than 6 months and employees continue to be unemployed without compensation

Advance from the fund for illness in certain cases:

• For his/her own treatment
• For treatment of family

Advance from the fund for marriages or post matriculation education of children:

• For marriage of self/daughter/son/ brother/sister
• For post matriculation education of son/daughter

Grant of advance to members who are physically handicapped:

• For purchasing equipment for minimizing hardship on account of handicap.

Withdrawal within one year before retirement:

• Partial withdrawal before retirement

There is also provision for advances for:

• Advance in abnormal conditions (damage of property due to natural calamity) (Para 68L)
• Advance to member affected by cut in electricity (max 300/-) (Para 68M)
• Advance for investment in Varistha Pension Bima Yojana. (Para 68NNN)

Click here to know more in detail about the EPF withdrawals.

Note: Please refer to the relevant Para of the EPF Scheme for above cases.