Understanding the New PF Withdrawal Rules: Know How to Apply

Understanding the New PF Withdrawal Rules: Know How to Apply

The Provident Fund (PF) is a retirement savings scheme that was introduced to help employees save a part of their salary for their future. The scheme is managed by the Employees’ Provident Fund Organisation (EPFO), and it ensures financial security for the employees during their retirement days. The scheme comes with a lock-in period, but the employees are allowed to make partial withdrawals to meet their specific needs, like medical expenses, education, housing, etc.

Recently, there have been some changes to the PF withdrawal rules, making it easier for employees to access their PF balance when required. Let us know about them one by one.

For Essential Social Security Needs

You can withdraw an amount from your PF account for important requirements like illness, education, and marriage for you and your family, under the following conditions:

• Illness: You can withdraw up to 100% of your eligible balance after completing 12 months of service for the treatment of an illness. Employees are allowed to withdraw only 3 times every financial year.
• Education: Employees can withdraw up to 100% of their balance after working for 12 months for education purposes. This can be done 10 times during your membership.
• Marriage: Employees can withdraw up to 100% of their balance after 12 months of service, for only 5 times during the membership.

Housing-Related Needs

If you need money for house-related needs, the PF can be used for various purposes, including:

• Buying a house/flat/plot of land, or site for construction.
• Repayment of home loan.
• Additions or Renovations

For these purposes, you can withdraw 100% of your eligible PF balance after working 12 months, and the withdrawals can be made up to 5 times during your membership.

Special Circumstances

If you need your PF money for special circumstances [specified in Para 68B(1)(a), 68B(1)(b) 68B(1)(bb), 68B(1)(c) 68B(7), 68BB, 68BC and 68BD of the EPF Scheme 1952] without needing to specify a reason, you can withdraw up to 100% of your PF balance after 12 months of service. This is allowed up to 2 times every financial year.

How to Apply for PPF Withdrawal?

Here is how the employees can apply for the PF withdrawal online:

• Step 1: Go to the UAN Portal and log in using your UAN and Password.
• Step 2: Go to ‘Online Services’ and from the drop-down menu, click on ‘Claim (Form-31, 19 & 10C).’
• Step 3: Submit the last four digits of your bank account and verify it.
• Step 4: Choose the type of withdrawal (Final, Partial, or Pension).
• Step 5: Submit the claim, and you will receive an SMS clarifying the claim status.