Latest Update on EPF
5 crore workers registered under Employee Provident Fund or EPF to get non-refundable advance of 75% of the amount or three months of the wages, whichever is lower, from their accounts.
Hello Everyone. This is part-2 of our post on patrial PF withdrawal. In part-1, we saw partial withdrawal rules for house purchase, renovation and home loan. In this post, we will look into partial PF withdrawal rules on education, health, and marriage.
We will cover the following topics:
- Partial PF Withdrawal Rules for Medical Treatments
- Education or Marriage Expenses
- Physically handicapped Employee
- Company lockdown
- Damage by natural calamities
Partial PF Withdrawal Rules for Medical Treatments
The EPFO allows PF withdrawals for medical treatment for you and your family member (spouse, children or dependent parents).
There is no minimum years of service required to avail of this withdrawal. You can take it any number of times.
- The hospitalization is more than 1 month or
- Any major operation in a hospital, or
- Suffering from T.B., leprosy, paralysis, cancer, mental derangement or heart ailment and have leave granted from his employer for the treatment.
Then there should be a certificate from a qualified doctor as a proof for 1-month hospitalization or major operation or proof of suffering from any above-mentioned illness.
Education or Marriage Expenses
You can take Partial PF withdrawal for the marriage of your children, brother/sister and yourself.
You can also pay the educational expenses of your children using partial PF withdrawal.
The child should continue his/her studies in any college or university for graduation or post-graduation or any other professional course to earn this benefit.
It can be availed only after 7 years of service and also the maximum amount you can withdraw is 50% of your contribution to EPF.
So PF partial withdrawal for both Marriage or Education purpose combined is only for 3 times in total.
Physically handicapped Employees
A handicapped employee can also get an advance from their PF for buying any device to decrease his physical difficulty.
If the company is shut down for more than 6 months, the employee can withdraw 100% of the employer’s contribution to PF and interest.
This is applicable only if he remains to be unemployed and no compensation is paid to him by the company.
An employee can also withdraw from the PF when a firm is closed down or did not receive his salary for more than 2 months.
To the employee who dismissed
If the employee is terminated or retrenched and the same is challenged by the member in a court of law, he can withdraw up to 50% of the amount in the PF fund.
Damage by natural calamities
PF withdrawal is possible when an employee suffers any loss due to any natural calamities like floods, earthquakes or riots.
He can then seek the advance of Rs 5,000 or 50% of his contribution to the EPF.
With that, we have come to an end of this post on PF partial withdrawal rules. Let us also know about your views and opinion in the comment section below.