EPF account withdrawal: Procedure
If salaried persons wish to withdraw their EPF accounts, they have to submit form 19 to their ex-employers, who in turn, have to sign and attest it. To complete the withdrawal procedure, members have to submit various other documents, namely, resignation letter and a cancelled cheque in addition to form 19 to the EPFO.
EPF withdrawal rules: Purposes
Salaried employees may withdraw money from their EPF accounts for various purposes, subject to certain conditions. Individuals have to furnish several documents in addition to meeting the eligibility criteria as per epf withdrawal rules. The list of purposes and quantum of contribution which can be withdrawn are listed below:
- Marriage A salaried person can withdraw for self, siblings and children. He or she should, however, have completed a minimum of seven years of service to withdraw 50% of contribution (thrice in a career).
- Medical treatment A salaried person can withdraw up to either six times of his or her monthly salary or total corpus towards medical treatment of self, parents, spouse and children.
- Construction/Purchase of plot If a salaried person wishes to withdraw from an EPF account for the purpose of either construction or purchase of a plot, the property must be registered in his or her name, spouse or be jointly held. A minimum of five years of service is required to withdraw an amount which is 24 times the salary of the account holder. For construction of a house, 36 times of the salary of an account holder can be withdrawn. It is important to note that withdrawal for said purpose can be done only once during the service of an account holder.
- Home Loan Repayment If a salaried person wishes to withdraw from an EPF account for the purpose of home loan repayment, the house should be registered in his or her name, spouse or be held jointly. A minimum of 10 years of service is required to withdraw up to 36 times of the salary of an account holder.
- House renovation/alteration If a salaried person wishes to withdraw from an EPF account for the purpose of house renovation or alteration, the house should be registered in his or her name, spouse or be held jointly. A minimum of five years of service is required to withdraw about 12 times of the monthly remuneration of an account holder.
- Retirement An individual must be 54 years old to withdraw up to 90% of the corpus of his or her provident fund account.
- Miscellaneous Individuals can choose to withdraw from their EPF account for various other reasons such as premature retirement as a result of any physical or mental disability, migrating abroad for the sake of better employment or settling down in a foreign country.
EPF Rules and Regulation
Employee Provident fund (EPF) Contribution Rules
EPF Interest Rate
EPF account withdrawal Procedure
- Total EPF amount can’t be withdrawn before attaining the retirement age of the member.
- Even after changing the job the employee can continue with the same EPF Membership.
- Maximum of 90% of the total accumulation can be withdrawn before retirement.
- Members are entitled to partial withdrawal after resignation.
- Retirement age of Members has also been increased.
EPF Membership Continues
|Subject||Old Rule||New Rule||Impact|
|Retirement Age||The retirement age should be at least 55 years for Full EPF withdrawal||The retirement age should be at least 58 years for full EPF withdrawal.||Early retirement would not make you eligible for full EPF withdrawal|
|Increase in age-limit||A member can 90% of PF corpus before one year of the retirement. Minimum Age for this relaxation was 54 years||The member can still withdraw 90% of EPF corpus one year before the retirement but minimum age should be 57 years.||Early retirement would be difficult|
|PF withdrawalafter leaving job||You can withdraw full EPF corpus after being unemployed at least for 2 months||You can’t withdraw full EPF corpus after leaving the job. The employer’s contribution and interest on it will remain in the PF account till the age of 57.||There would be an EPF corpus at the time of retirement, in every situation.|
|Continuity of PF membership||Once an employee leaves his job and withdraws his total PF balance, the membership ends||The membership would continue as employee would not be able towithdraw the complete PF corpus before the age of 57.||You would be able to renew your PF membership anytime before the retirement|