The EPF is conventionally meant to be utilised after the retirement of an employee, however, the EPFO allows an individual to withdraw the amount before retirement also.

New Delhi: Provident fund is a saving vehicle designed by EPFO (Employees Provident Fund Organisation) under Ministry of Labour and Employment. For building a sizeable corpus under PF (provident fund), employees contribute 12 per cent from their respective salaries, basic pay plus DA (dearness allowance), and the employer adds the same amount in relative terms. The EPF is conventionally meant to be utilised after the retirement of an employee, however, the EPFO allows an individual to withdraw the amount before retirement also.

The EPF amount can be withdrawn in case of necessities such as repayment of a loan, unemployment for more than 2 months, for treating illness of any family member, for marriage of self, daughter, son, brother, etc and for purchase, construction of a house. The amount which can be withdrawn from the EPF account is subject to various criteria and the tenure of EPFO membership.

Here are five things to know about EPF advance withdrawal for purchase, construction of house

1. A person can apply for advance withdrawal, if the individual has been a member of the EPFO for a minimum of five years.
2. An individual, who is a member of EPFO, is allowed to withdraw the amount for purpose of purchase or construction of house, only once during the course of entire employment.
3. EPFO members are authorised to withdraw basic salary and DA of 24 months, 36 months or the total amount of employee and employer share with interest or total cost, which is subject to the least amount required for buying a house, flat or in purpose of construction.
4. An employee is entitled to apply for a loan for renovation, repair of the existing house owned by either of the spouses or in case of joint-ownership of the property.
5. An EPFO member can apply for an early withdrawal of EPF amount by providing a declaration. Other than employees’ declaration, no document is required for this purpose.

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