An employee has the option to withdraw money from their PF for his/her own marriage, his/her child’s marriage, or his/her sibling’s marriage.
Withdrawing a certain amount from the Employee Provident Fund (EPF) account has always been a hot topic among employees. While employees are not allowed to withdraw the entire amount from their EPF account, they can always opt for a partial withdrawal. The money can be extremely useful for medical treatment, buying or repairing a house, marriage, or children’s education.
Here’s a list of situations in which employees can consider withdrawing a partial amount from the EPF accounts:
PF withdrawal for buying or building a house: How much can you claim?
If an employee seeks to withdraw money from the PF account to buy or build a house, he/she will be required to fulfil certain conditions. The first condition is that the employee must have completed at least 5 years of service, including previous employment.
When it comes to the withdrawal amount, an employee can withdraw the total contribution of the employee and employer and the interest earned on it, or the cost of the house, whichever is less. In case the employee seeks funds to build a house, up to 90 per cent of the total PF balance is available for withdrawal.
Medical emergency? Here’s how much you can withdraw from your PF
In the case of a medical emergency, PF funds can be withdrawn if the employee, their spouse, child, or parent is suffering from a serious illness. The amount available for withdrawal is equivalent to the employee’s contribution and the interest earned on it, or six months’ basic salary and dearness allowance, whichever is less.
Notably, withdrawal under this condition does not require the employee to have completed any minimum service period during his employment.
PF withdrawal for marriage: What is the permissible amount?
An employee has the option to withdraw money from their PF for his/her own marriage, his/her child’s marriage, or his/her sibling’s marriage. To be able to withdraw money under these situations, the employee must have completed at least 12 months of service.
Prior to this, withdrawal was allowed after 7 years of service. The amount available for withdrawal is equal to the employee’s and employer’s contribution, i.e., 100 per cent of the PF amount. Prior to this, withdrawal was allowed after 7 years of service. The amount available for withdrawal is equal to the employee’s + employer’s contribution, i.e., 100 per cent of the PF amount.
