EPFO Withdrawal Rules: How Often Can You Withdraw Money From Your PF Account?
EPF advance withdrawals are allowed under specific conditions, such as unemployment for more than one month, purchase or construction of a house, housing loan repayment, among other things.
The Employees’ Provident Fund Organisation (EPFO) manages the Employees’ Provident Fund (EPF) scheme for private sector employees. It is the primary government-backed retirement benefit programme for salaried employees in the formal sector.
Under the EPF scheme, an employee contributes 12% of the basic salary and dearness allowance every month. The employer contributes an equal amount. The government periodically reviews the interest rate for the PF scheme. For FY 2024-25, the EPF interest rate has been fixed at 8.25%.
Generally, advance withdrawals from the PF account are not advisable as it is a retirement benefit scheme. However, EPFO allows its members to make partial withdrawals from their PF accounts even before retirement under specific conditions.
These withdrawals are allowed for specific cases such as extended periods of unemployment, purchase or construction of a house, home loan repayment, medical treatment, marriage and other special needs. The EPFO has laid out the withdrawal limits and eligibility conditions for each purpose.
EPFO Withdrawal Rules
1. In case of unemployment for over one month, EPFO allows withdrawal of 75% of the PF balance. After remaining unemployed for two consecutive months, an EPF subscriber can withdraw the remaining 25% or the entire balance.
2. For house construction or purchase, EPFO allows withdrawal up to 90% of the employee’s PF balance. One can avail this service after completing three years of membership with EPFO. Employees can use this facility once and withdraw the money in one or more instalments.
3. Similarly, an EPF subscriber can withdraw the PF balance for housing loan repayment purposes under specific conditions. The maximum amount permitted is the minimum of these three conditions: 36 months’ basic wages and DA, the total of employee and employer share with interest, or the total outstanding principal and interest of the home loan. The withdrawal can be made in only one instalment. An EPF member needs to remain enrolled for at least 10 years to use this facility.
4. Under EPFO rules, an advance in special cases can be withdrawn from the employee’s share with interest. This facility can be used one or more times. The conditions to withdraw under this category include closure of the employer establishment for over 15 days, non-payment of salary for over two months, etc.
5. In case of illness, EPFO allows an advance withdrawal to meet medical expenses. The advance is payable in one instalment only. The maximum amount permitted is the least of the following: either 6 months’ basic wages and dearness allowance (DA) or the employee’s share with interest.
6. For the purpose of marriage, EPFO allows an advance as a one-time instalment facility. The maximum amount permitted is 50% of the employee’s share with interest. An EPF subscriber can avail this facility only after at least seven years of enrolment under the scheme.
