EPFO Withdrawal Rules: Generally, the money deposited in EPF is received by the employee after his retirement. But, in some special situations, the employee is allowed to withdraw money before retirement. Different limits of withdrawal are fixed for each situation.
EPFO Withdrawal Rules: People doing private jobs come under the purview of EPFO scheme. In this, the employee contributes 12 percent of his basic salary to the EPF account every month. The employer deposits the same amount in the employee’s EPF account every month. A large part of this money goes to the retirement fund. The other part goes to the pension fund. The employee gets the money from the retirement fund when he retires. After retirement, he gets pension every month from the money deposited in the pension fund. In some situations, withdrawal of money deposited in the retirement fund is allowed. Let us know what these situations are.
In case of unemployment
If an employee remains unemployed for at least one month, he can withdraw 75 percent of his money. If you remain unemployed for two months or more, the entire amount deposited in the EPF account can be withdrawn.
Premature withdrawal
If the money is withdrawn within 5 years of opening the EPF account, then it is taxed. However, if the employee withdraws less than Rs 50,000, then TDS will not be applicable on that.
On changing jobs
If you do not want to transfer your PF balance to your PF account of another employer on changing jobs, then you can withdraw your money. After the Universal Account Number (UAN) is activated, you can start the transfer process.
Withdrawal after retirement
An employee can withdraw the entire amount from his EPF account after retiring from the job. The retirement age in the private sector is 58 and 60 years. Some employers give retirement to the employee at the age of 58, while some give it at the age of 60.
For treatment
An employee can withdraw money deposited in EPF for the treatment of himself, wife, children and parents. For this, the limit is fixed at six months basic salary.
For marriage
An employee can withdraw money from his EPF account for the marriage of himself, son/daughter or brother/sister. He can withdraw up to 50 percent of his contribution in the EPF account for this purpose.
For building/buying a house
If a person is building a house or buying a house, then he can use his money deposited in EPF. For this, he can withdraw money of his basic salary for 24-36 months from the EPF account.
