EPFO withdrawal rules
EPF i.e. Employees Provident Fund is considered to be the most reliable savings for employed people. Now there is relief news for EPF account holders in 202526. The Employees’ Provident Fund Organization (EPFO) has made the withdrawal rules simpler and clearer than before, making it easier for people to understand when and under what circumstances they can withdraw their money. Its purpose is to provide help in times of need while keeping retirement savings safe.
Withdrawal now in three big categories
Earlier, the rules for EPF withdrawal were divided into 13 categories, which caused a lot of confusion to the employees. Now the rules have been divided into only three big categories, essential needs, home related needs and special circumstances. This has not only made it easier to withdraw funds, but the process of making online claim has also become simpler.
When can you withdraw complete EPF money?
You can withdraw your entire money from EPF under certain circumstances, like after the age of 58 years or on voluntary retirement, in case of disability or inability to work, apart from this you can withdraw 75% immediately after unemployment and the remaining 25% after 12 months. You can make withdrawals even if you are settled abroad.
Partial Withdrawal: How much amount can be withdrawn
You can also withdraw your money from EPFO for some special needs. For example, after 5 years of service, you can withdraw money for buying, building or renovating a house. After 10 years of service, you can withdraw up to 90% to repay the home loan. For renovation, you can withdraw 12 times the monthly salary or PF contribution, whichever is less. This facility can be used twice.
For medical, marriage and education
You can withdraw money at any time for the treatment of yourself, spouse, parents or children. There is no minimum service condition in this. After 7 years of service, you can withdraw 50% of the total contribution for the marriage of yourself or your children/siblings. Apart from this, after 7 years of service, you can withdraw up to 50% of the total contribution for children’s education (after class 10).
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Before retirement or in emergency situations
You can withdraw 90% of your money at the age of 54 or one year before retirement. Whereas in case of disasters like flood, earthquake or not receiving salary for more than two months, a small amount can be withdrawn.
What are the rules regarding tax?
It is very important to understand the tax rules while withdrawing money from EPF. If an employee has worked continuously for five years or more, then the money withdrawn from EPF is completely tax-free. But TDS can be deducted if money is withdrawn before five years.