‘Provident Fund’ i.e. ‘PF’ is the safest and most important basis after retirement. 12% of the salary is credited to the employee's PF account. It also earns good interest. However, there is often a need to withdraw money from PF. There are rules for this, and money can be withdrawn only for the reasons mentioned. Let's find out now.
EPFO members are allowed to withdraw a certain amount of funds. Funds can be withdrawn for reasons such as repaying Home loan repayment, buying a new home or repairing a home, medical needs, Wedding of member/sibling/children, unemployment.
Unemployment-
- A person can withdraw 75% of his or her provident fund if he/she is unemployed for more than a month.
- For unemployment of more than 2 months, remaining 25% of the corpus can be withdrawn.
For Wedding-
- At least 7 years of service must be completed in order to be eligible for the withdrawal.
- 50% of the employee’s contribution with interest can be withdrawn.
- An employee can withdraw funds for his own, siblings or child’s marriage.
For Repaying Home Loan-
- For the purpose of repaying the outstanding home loan, the PF member is allowed to withdraw up to 90% of the corpus if the house is registered in his or her name or held jointly
- However, to withdraw the amount, at least 3 years of complete service is required.
For Renovating and Reconstructing a House-
- The employee can withdraw funds from his EPF account for the purpose of renovation and reconstruction.
- The house should be held in his/her name or held jointly with the spouse.
- The employee must complete at least 5 years of total service.
- The member can withdraw 12 times his monthly salary from his Provident fund account.