PF Withdrawal Guide: Eligibility, Frequency, and Key Rules You Must Know
Full PF Withdrawal Rules Explained: When and How Often Can You Take Out Your PF? Withdrawing Provident Fund (PF) money earlier confused many employees. Different rules, long waiting periods, and technical issues often led to claim rejections.
The Employees’ Provident Fund Organisation (EPFO) has now simplified PF withdrawal rules. Employees can access their money more easily when they need it.
Under the new rules announced in October last year, EPFO brought all partial withdrawals under one framework. This change ensures clearer rules, faster processing, and higher withdrawal limits.
Problems With PF Withdrawals Earlier:
Earlier, EPFO had 13 different withdrawal provisions. Each provision required a service period of 2 to 7 years, which confused many employees.
In most cases, employees could withdraw only their own contribution and the interest earned on it. Even then, EPFO allowed withdrawals of only 50% to 100% of the amount. This made full withdrawals difficult, even during emergencies.
When Can You Withdraw 100% of Your PF?
After completing 12 months of service, employees can withdraw the entire eligible PF amount in specific situations:
Medical treatment: You can withdraw money up to three times in a financial year for self or family treatment.
Education: You can make up to 10 withdrawals during your entire PF membership for your own or your children’s education.
Marriage: You can withdraw money up to five times during your membership for your own or your children’s marriage.
Housing needs: You can withdraw money up to five times to buy a house, build one, repay a home loan, or make repairs.
Special cases: If you do not need to give a specific reason, you can withdraw money up to two times in a financial year.
PF Withdrawal Rules After Job Loss:
If you lose your job, EPFO allows immediate withdrawal of 75% of your PF balance. This includes both employee and employer contributions, along with interest.
You can withdraw the remaining 25% after one year. In certain cases, EPFO allows full PF withdrawal. These include retirement after 55 years, permanent disability, retrenchment, voluntary retirement, or permanent migration abroad.
Will These Rules Affect Your Pension?
These changes do not affect pensions. To receive a monthly pension under the Employees’ Pension Scheme (EPS), you must complete at least 10 years of service.
If you withdraw the pension amount before completing 10 years, you lose the right to future pension payments. If you do not withdraw it, your family can receive pension benefits for up to three years after your death, even if contributions stop. This protection ends if you opt for a lump-sum pension withdrawal.
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