If you have ₹1 lakh deposited in your PF account and you suddenly need money, how much can you withdraw? Can you withdraw ₹25,000, ₹50,000 or ₹75,000? The answer depends on your requirement and EPFO rules. The Employees Provident Fund Organization (EPFO) has simplified the rules for withdrawing advance money from PF, so that employees can use their PF for medical expenses, education, marriage and household needs.
Under the new rules, partial withdrawals from PF are divided into three categories. It includes essential expenses, household expenses and special circumstances. These rules also stipulate a minimum 12-month membership requirement for partial withdrawals.
If I have ₹1 lakh in PF, how much can I withdraw?
As per the rules given, eligible members can withdraw a maximum of 75% of their EPF balance after completing 12 months of membership. That is, if you have ₹1 lakh in your PF account, you can avail withdrawal facility up to ₹75,000 if the eligibility and applicable conditions are met. This balance includes the contribution of both the employee and the company and the interest earned thereon. However, before applying, please check the terms and conditions of your withdrawal category.
When can you withdraw the full amount?
If an employee loses his job, he can withdraw up to 75% immediately. The remaining 25% remains in the account until the condition of being continuously unemployed for 12 months is met. After this you can get the option to withdraw the full amount. Keep in mind that withdrawing money from PF reduces your retirement savings. The higher interest earned on this amount may also be less. So, it is better to withdraw money from PF only when needed. Having a separate emergency fund for unexpected expenses can also be helpful.
How much PF can be withdrawn for treatment?
Medical expenses are kept under the category of essential needs. Under the new rules, employees can take advances from PF for critical or urgent medical expenses. Unlike some other categories there is no fixed limit on the number of advances taken for treatment. However, the applicable rules for withdrawal must be followed.
PF withdrawal facility for marriage
Employed people can also withdraw money from PF for their wedding expenses. This facility can be availed a maximum of 5 times during EPFO membership. Certain conditions apply for this also.
