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Under the Employees' Provident Fund (EPFO), an employee contributes 12% of his basic salary and dearness allowance, while the employer also makes a matching contribution.
The EPFO allows its members to withdraw the full amount upon retirement, and also allows partial withdrawals for specific needs.
Let’s look at 11 reasons for which EPFO members can withdraw funds as per the EPF Scheme, 1952.
Members who have completed at least 7 years with the EPFO can withdraw up to 50% of their own contribution (including interest) for their marriage.
Members can withdraw funds even for their sibling’s or child’s marriage. For marriage purposes, withdrawals can be made up to three times in their lifetime.
An EPF member can make a withdrawal for the post-matriculation (after 12th standard) studies of their children if they have been with the EPFO for at least 7 years.
EPFO members who have completed 5 years of membership can withdraw funds for purchasing a house/land, and for renovation after 5 years from completion of the house
For this, conditions are flexible. Members can withdraw money as many times as necessary, at any time, even just after joining.
For medical purposes, the maximum withdrawal limit is capped at the lowest of either six months' basic salary plus dearness allowance or your total EPF balance.
Members above the age of 54 or within one year of retirement (or superannuation), whichever is later, can withdraw up to 90% of the funds in their PF accounts.
Physically disabled EPFO members can withdraw funds for purchasing equipment to minimise hardship on account of disability every three years.
For this, 6 months’ basic wages and DA, or the employee’s share with interest, or the cost of equipment, whichever is least, can be withdrawn.
A member who is rendered unemployed due to the closure of business for more than 15 days or without compensation can withdraw their share in the EPF account.
Members who have not received wages for two consecutive months (except during a strike) can also withdraw the same.
Members above the age of 55 can withdraw up to 90% of their EPF balance to invest in the Varishtha Pension Bima Yojana.
In case of an electricity cut, members can withdraw one month’s wages, or ₹300, or the employee’s share, whichever is less, by filling Form 31.
Those completed 10 years of EPFO membership can withdraw funds to pay the outstanding principal and interest of a loan taken to buy/construct a house or for repairs.
If an employee is dismissed or retrenched, and challenges the same in a court of law, they can withdraw up to 50% of the employee's share with interest.
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