EPFO changes rule for house renovation advance; now get money by self-declaration without rejection

The Employees' Provident Fund Organisation (EPFO) recently revised the rule for members planning to avail an advance from their provident fund accounts for house renovation.

Under Para 68B(7) of the EPFO rules, the provident fund body allows members to withdraw an advance for renovating their house after five years of its completion.

Now members can avail this advance by simply submitting a self-declaration that they are claiming it after five years of the completion of the house. Further, the members should also declare that the advance claim is not linked to any previous withdrawal under para 68B

Para 68B allows advances for various housing needs, such as purchase of a house/flat, construction of a house, including acquisition of the site, etc.

"In order to facilitate members to avail advance under Para 68B (7), it has been decided to allow application for the above said advance based on a self-declaration that this advance is claimed only after 60 months from the date of completion of the dwelling house and without linking to previous withdrawal under para 68B," the EPFO said in a circular dated April 17, 2025.

The EPFO has already made changes in the software for the benefit of members. And it has advised all its field offices and concerned departments to process such advances without any rejections.

"The changes in this regard have already been made in the software for benefit of the members and accordingly it is advised to process such advances without any rejections, if otherwise eligible," EPFO said.

House renovation Advance rules

Members can claim an advance under para 68B (7) for addition/alteration/improvement in the house owned by them. This advance can also be claimed for the house owned by the spouse or the house held jointly with the spouse.

This advance can be withdrawn after 5 years from the completion of the house.

The amount provided as an advance under this rule is the least of the following:

• 12 months' basic wages and DA
• Employee's share with interest
• Cost of renovation

This advance is paid to the member once in a single instalment.