Many salaried employees in India have a Provident Fund (PF) account, where employees and employers contribute monthly. These savings become a helpful fund for emergencies, but many are still confused about how and when to withdraw money while still working. The Employees’ Provident Fund Organisation (EPFO) clearly defines PF withdrawal rules and conditions.
Let’s break it down into simple language so you understand when and how much you can take from your PF account.
✅ PF Advance Withdrawal for Marriage
You can withdraw money from your PF account for marriage purposes — your own, sibling’s, or child’s. But there are some conditions:
- You should be an EPF member for at least 7 years.
- Your PF account must have at least ₹1,000.
- You can withdraw up to 50% of your contribution, including interest.
- You can use this option for marriage only three times in your lifetime.
So, if you’ve been working and contributing to PF for over 7 years and need money for marriage in the family, this rule helps you.
🎓 PF Withdrawal for Education Expenses
Like marriage, you can also withdraw PF money for education, especially higher education, for your children.
- You must have completed 7 years of PF membership.
- You can withdraw up to 50% of your contribution with interest.
- This option is also limited to three times in your life.
This can be useful when managing expenses like college admissions or professional courses for your children.
🏠 PF Withdrawal for Buying or Building a House
Home buying or building is a significant investment. EPFO allows you to use your PF money for this under some specific terms:
- You should have completed 5 years in EPF.
- The funds can be used to buy land, buy a house, or construct a new house.
- You can also use this benefit to repay home loans.
- The amount you can withdraw will be the lowest of these three:
- 36 months’ basic salary and DA
- Total of your and your employer’s contribution (with interest)
- Outstanding principal and interest on your loan
To repair or renovate your house:
- You can withdraw after 5 years of completing the house construction.
- For additional repairs, money can be withdrawn only after 10 years of the first withdrawal.
- You can use this benefit only once for repairs.
🏥 PF Withdrawal for Medical Treatment
EPFO has kept this rule very flexible. If you or your family face a medical emergency, you can withdraw your PF money without waiting many years.
- No minimum membership is required.
- There is no limit to how many times you can withdraw for medical reasons.
- Medical advances can be taken for oneself, spouse, children, or parents.
- The amount you can withdraw is:
- 6 months’ basic salary and DA or
- Employee’s share with interest, whichever is lower.
This rule falls under Para 68J of the EPF Scheme, 1952.
👴 One Year Before Retirement
As per Para 68NN of the EPF Scheme, you can withdraw up to 90% of your total PF balance one year before retirement.
- This is allowed only once.
- You must be within 1 year of retirement age (58 years).
- Both your and your employer’s share can be withdrawn.
This helps in managing expenses when your regular income stops.
♿ PF Withdrawal for Disability or Handicap
If you are physically disabled or suffer from any long-term disability, you can withdraw PF money to buy equipment or support tools.
- Allowed under Para 68N of EPF Scheme.
- You can withdraw the lowest amount among the following:
- Cost of required equipment
- Employee’s share with interest
- 6 months’ basic salary with DA
You can withdraw money for such equipment once in three years.
🚫 PF Withdrawal in Case of Unemployment
If you lose your job or the company shuts down, you can withdraw some of your PF money.
- If your company remains shut for over 15 days, you can withdraw your share and interest.
- You can withdraw from your PF if you have not received a salary for 2 months.
- This is allowed under Para 68H of the EPF Scheme.
This rule is helpful for those facing sudden unemployment without compensation.
🏦 PF Withdrawal to Repay Home Loan
If you’ve taken a home loan and want to pay off your EMIs, you can use your PF balance under certain conditions.
- You should have 10 years of EPF membership.
- The money can repay home loans (principal and interest).
- You can withdraw the lowest of the following:
- 36 months’ basic salary with DA
- Total employer and employee share with interest
- Total outstanding loan (principal + interest)
This rule is mentioned in Para 68BB of EPF Scheme, 1952.
Essential Things to Keep in Mind
- PF withdrawal is tax-free in most cases if the account is over 5 years old.
- You can apply online for most PF advances using the UAN portal or UMANG app.
- Constantly update KYC details like Aadhaar, PAN, and bank account to ensure smooth withdrawal.
- Most withdrawals require no employer approval if your KYC is verified.
Sources: EPFO, UPSTOX, Ministry of Labour & Employment
