EPF or PF Withdrawal Rules 2024 – Check Type & Process

PF Withdrawal Rules:- Provident Funds, or PFs for short, are contribution-based savings plans in which employers and employees pool their resources to build a fund that would cover post-retirement expenses. Subject to specific Provident Fund withdrawal regulations, the employee may access or remove the corpus that was generated. A statutory organization called the Employees’ Provident Fund Organisation oversees the Employee Provident Fund in India, which provides a safety net for citizens of that country who work in the organized sector. The Organisation has defined the new PF Withdrawal Rules. Read the article below to learn more about the PF Withdrawal Rule

PF Withdrawal Rules 2024

PF Withdrawal Rules 2024

Under the direction of the Ministry of Labour and Employment of the Government of India, the Employees’ Provident Fund Organisation (EPFO) is in charge of overseeing and managing provident funds in India. Employees of an eligible organization can contribute 12% of their base pay each month to a savings fund as part of a PF savings plan. EPFO has updated the PF withdrawal guidelines to make it simpler for members to access their PF money during times of financial hardship. Interest is paid on money invested into PF accounts, and the total amount can be withdrawn after retirement.

However, the subscriber may also take an early withdrawal, which is equal to 25% of the net balance in their PF or EPF account, whichever is less, or three months’ worth of their base pay + dearness allowance. Continue reading to learn more about the EPFO-established guidelines for PF withdrawal.

How To Withdraw PF Amount Online 

EPF Withdrawal Rules Details in Highlights

NamePF Withdrawal Rules
Full formProvident Fund
Name of the organisationEmployees’ Provident Fund Organisation
ObjectiveTo make it simpler for members to access their PF money during times of financial hardship
Official websiteepfindia.gov.in

2024 New EPF Withdrawal Rules

The following are some fundamental guidelines that one should remember:

  • A person cannot take money out of their PF account, either in full or in part, until they are employed.
  • Form 15H or Form 15G cannot be used to circumvent the TDS deduction.
  • If a person has been unemployed for at least a month, they may withdraw up to 75% of the funds; if they have been unemployed for more than two months, they may withdraw the entire amount.
  • If a person wishes to withdraw Rs 50,000 or more from the corpus within five years of creating an EPF account, 10% (or 30%, if the person does not have a valid PAN Card) of TDS would be applied.
  • When changing jobs, a person is not obliged to transfer the balance from their previous PF account to their new one. If the necessary forms have been filed and your UAN is active, the money can be transferred with ease.
  • After working for a specific number of years, a person is only eligible to apply for a loan against their PF funds.
  • If a person has not worked for at least two months or if the start date of their new employment is more than two months after the last day of employment with their old employer, they are eligible to withdraw their whole PF balance.

 Fill PF Withdrawal Form

Documents Required for EPF Withdrawal

The following documents are needed to withdraw the PF amount-

  • Universal Account Number (UAN)
  • Bank account information of the EPF subscriber
  • Identity and address proof
  • Cancelled cheque with IFSC code and account number

The following list of grounds for PF withdrawal includes the relevant guidelines for each situation:

  • In the event of unemployment
    • A PF account holder can withdraw up to 75% of the entire amount accrued if, following the termination of employment, they have been jobless for more than one month. In addition, this clause permits the account holder to withdraw the remaining 25% if the unemployment duration exceeds two months.
  • For Education
    • After class 10, PF account holders may withdraw up to 50% of their total employee contributions to the EPF to cover the expense of their post-secondary education or that of their children.
    • After making contributions to the EPF account for a minimum of seven years, the funds will become transferable.
  • To cover the cost of marriage.
    • According to the most recent PF withdrawal regulations, an account holder may also take out up to 50% of their employee’s portion to cover marriage-related costs.
    • The person in question or the account holder’s son, daughter, brother, or sister should be getting married. However, you can only use this provision after making PF contributions for seven years.
  • For People with Special Needs
    • To cover the expense of equipment, holders of specially-abled accounts are permitted to withdraw six months’ basic wage plus dearness allowance, or the employee share plus interest, whichever is lower, under the PF withdrawal guidelines for 2024.
    • The action was taken to lessen the financial strain that people can feel while buying pricey equipment.
  • In Case of Medical Emergencies

The EPF balance may also be withdrawn by the PF or EPF account holder to cover emergency medical expenses for specific illnesses. You may use this facility for personal use or to cover the costs of treating members of your immediate family.

  • To Cover Current Debts

To pay their house loan EMIs, people might take out 36 months of basic pay plus dearness allowance, or the entire employee and employer share plus interest.
But access to this option is restricted to those who have contributed to their EPF account for at least ten years.

New EPFO Rules 

  • For Renovation Your Home.
    • The new rules for provident funds also allow employees to take out their share of interest, plus the basic income and Dearness Allowance for a maximum of 12 months, to be used for house expansion or improvements.
    • The residential property may be owned jointly, by the PF account holder, or by his or her spouse.
    • A person may use this facility twice: the first time after ten years, and the second time after five years of finishing the residential property.
    • A shareholder may additionally withdraw up to 90% of the account balance under the revised EPF withdrawal guidelines if they turn 54 years old or one year before retirement or superannuation.
FAQ’s
Is it possible to withdraw PF early?

Indeed. You can do so if certain requirements are met.

Will my employer’s consent be required for me to take my PF amount out?

The sum can be withdrawn without the employer’s consent, according to the new guidelines.

Will my company have to match my increased PF contributions?

No. The employer will make the same minimal contribution.

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