In a big relief for provident fund (PF) account holders, the Employees’ Provident Fund Organisation (EPFO) has changed the rules for EPF advance withdrawals. Sharing the information on its social media platform X, the provident fund body said that new rules and withdrawal limits for EPF advances have been made to meet essential needs such as education, medical treatment, and housing. The EPFO has also shared information about the number of withdrawals allowed for different needs.
According to the new rules, an employee is eligible to withdraw an advance after completing 12 months of EPF membership.
How much EPF advance can you withdraw?
You can withdraw an advance of up to the maximum amount deposited in your EPF account, including employee and employer contributions and the interest earned. This means that if your PF account includes both employee and employer contributions, along with interest, you can withdraw up to 75 per cent of that amount as an advance, depending on the eligibility criteria.
No limit on EPF withdrawals for illness
EPFO has categorised essential needs separately. These include illness, education, and marriage. In case of illness, an employee can take an advance for their own or their family’s treatment, with no limit on the number of withdrawals. Employees can withdraw education advances up to 10 times during the membership period and marriage advances up to five times.
EPF advance for housing
EPF advances are also available for housing-related needs. Employees can avail advances to purchase a house, flat, or plot; construct a house; repay a home loan; and renovate or improve a home.
You may take up to five withdrawals under this category during the membership period. Additionally, you can withdraw a maximum of two advances in a financial year under special circumstances notified by the EPFO.
You can apply online
You can apply for a PF advance through the official EPFO portal. Before applying, you must complete bank, PAN, and Aadhaar KYC verification. Once you meet the eligibility criteria, you can complete the application process.
In Category 3, employees can withdraw up to two times per financial year for special circumstances notified by the Central Board of Trustees (CBT), EPFO.
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