The Employees’ Provident Fund Organisation (EPFO) has definitely allowed partial withdrawals in particular circumstances. However, most of us remain clueless about the same and end up shying away from making withdrawals when the accumulated funds would have proved a handy source for meeting necessary expenses. Are you one of those who have refrained from withdrawing money partially from your EPFO account? If the answer is yes, read on to find out more for the next time you need funds.
EPFO members can partially withdraw money from their account
- For applying online for a partial withdrawal, the EPFO subscriber should have an active Universal Account Number (UAN).
- EPFO allows for partial withdrawals for particular reasons only.
- EPFO members can withdraw up to 50% of the funds in the EPFO account for their own marriages or marriages of their sons/daughters and brothers/sisters. However, the individual should have contributed to EPF for a period of 7 years at least.
- Members can also make partial withdrawals for post-matriculation higher education expenses of their sons/daughters based on specific circumstances. Contributions must have been made to the EPF for 7 years prior to withdrawal.
- Construction/purchase of home- Members can also withdraw funds for buying or constructing a home. 5 years membership should have been completed by the member who chooses to withdraw on these grounds.
- Home renovation- The member can make partial withdrawals from the EPF account in case he/she is desirous of repairing his/her home. This can be taken only two times, namely 5 years from the completion of the housing unit and 10 years from taking the former.
- Medical Reasons- The EPF funds can be partially withdrawn for medical reasons. They can be taken for meeting treatment expenses of oneself, children, spouse or even parents. This kind of withdrawal does not require any minimum service period or any minimum lock-in period.
- Home loan repayment- EPF members can withdraw from their accumulated funds in case they wish to repay their home loans by way of the outstanding interest and principal on the same. However, service should have been completed for at least 10 years before this kind of withdrawal is permitted.
- Retirement needs- The full EPF corpus can be withdrawn by the member at retirement or upon attaining the age of 58. The employee can withdraw up to 90% of the balance in the EPF account.
Withdrawal process and other aspects
- You can apply for withdrawal online with the UAN (Universal Account Number) and the mobile phone number that you use for activating this should be working properly.
- You can also physically submit your application for withdrawal of funds. There is the Single Page Composite Claim Form that the EPFO has already released which is a replacement for the diverse claim forms such as Form 31, 19 and 10C among others. These forms are accepted and processed with self-attestation and you do not need the employer’s attestation in this regard.
- The Composite Form comes with non-Aadhar and Aadhar categories. For the latter, it is applicable for those people who have already activated the UAN and linked it with their bank account number and Aadhar card. These employees can easily submit claims online through the Aadhar composite claim form although the UAN should be properly seeded with information like your bank account number, Aadhar and PAN. This should also be verified by your employer. You should fill up the form and submit online. The non-Aadhar form is used by those who have not linked UAN with Aadhar and activated UAN as of yet.
Other things to keep in mind
Salaried professionals who are members of the EPFO can soon withdraw up to a whopping 75% of their EPF corpus in case they remain unemployed for at least one month. The central board of trustees for the EPFO have already decided in principle to allow these withdrawals. This is the corpus which includes one’s own contributions, the contributions of the employer and also the interest which is earned on the same. Previously, regulations enabled full withdrawal of the corpus in case one did not have a job for more than 2 months. However, the account had to be closed.
However, with a view towards keeping the account active and smoothen out liquidity, the EPFO has decided on enabling the advance against the corpus up to 75% on account of a job loss or unemployment for one month. However, the final guidelines concerning this decision will be issued in the near future. In most cases of partial withdrawal, settlement procedures can take up to a couple of weeks though it can happen earlier as well.