EPFO Withdrawal Rules Simplified: Higher Medical Withdrawal Limit for Employees
You can apply for EPFO withdrawal online through the Unified Portal (Unified Portal for EPFO). Here’s a brief overview of the process
EPFO Withdrawal Rules
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. T
his 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Maximum Limit: 75% of your contribution (plus employer’s share and interest) can be withdrawn immediately.
The remaining 25% can be withdrawn in the next two months.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.
- By Harpreet
- 26 Oct 2024 12:37 PM IST