The Employees’ Provident Fund Organisation (EPFO) stopped the facility for non-refundable advances from EPF accounts provided during the Covid-19 pandemic. The facility was provided during the first and second waves of the pandemic in 2020 and 2021. EPFO’s June 12, 2024, circular states that as COVID-19 is no longer a pandemic, the competent authority will discontinue the facility “with immediate effect”. It will also apply to the exempted trusts and “accordingly may be intimated to all trusts coming under your respective jurisdictions.”

Under the Covid-19 withdrawal rules, an EPF member can withdraw a non-refundable amount, equivalent to three months of basic wages and dearness allowance (DA), or 75 per cent of the EPF account, whichever is lower, to help ease financial distress during the health crisis.

However, one can withdraw from the EPF account on other grounds. Let’s delve deeper.

When Can You Withdraw Money From EPF Account?

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House Purchase and Construction (68B):

EPFO allows advance for house purchase or construction if a member has contributed to the fund for at least five years. For purchasing a house, the withdrawal amount is 36 months of basic salary and DA, or employee and employer’s total contribution, or the total cost, whichever is the least. In the case of site purchase, the permissible amount is calculated from 24 months of basic wages and DA, or employee and employer’s share with interest, or the total cost, the least of these three. For house renovation, the permitted withdrawal limit is Rs 12 months of basic wages and DA, or employee’s contribution with interest, or the total cost, the least of these.

For withdrawals under 68B, the house should be in the name of the member or spouse or jointly with the spouse. Recently, EPFO introduced automated claim settlement, which includes withdrawals under Rule 68B.

Medical Treatment (68J):

A member can also withdraw money for medical treatments of self or family. It could be up to six months of basic wages and DA or the employee’s contribution and interest, whichever is lower. EPFO has increased the withdrawal limit for medical needs from Rs 50,000 to Rs 1 lakh through a circular dated April 16, 2024. There is no requirement for a minimum contribution period, like in the case of education or marriage, and an applicant only needs to submit a self-declaration for partial withdrawal for medical needs.

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Children Education (68K):

An EPF member can take advances for children’s education (post matriculation) for son or daughter for up to 50 per cent of one’s contribution to EPF and interest. For this withdrawal, one must have completed at least seven years of contributing to the EPF. The member must submit a certificate for the course and expenditures. A maximum of three withdrawals are allowed for this purpose.

Marriage (68K):

Another reason permitted for withdrawal from the EPF account is a marriage of self, daughter, son, sister, and brother. The withdrawal could be up to 50 per cent of the employee’s contribution and the interest. It is allowed only after seven years of contribution to the fund. In the case of marriage, the member is required to submit a declaration on Form 31 for taking an advance. Recently, the limit for this withdrawal (68K) has been enhanced up to Rs 1 lakh.

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Advance For Buying Equipment (68N):

In the case of a physically disabled EPF member, a withdrawal is allowed to buy equipment to reduce the hardship. The amount permitted will be the lowest of six months’ basic wages and DA, employee share with interest, or equipment cost.

Separately, if an EPF member remains unemployed for more than one month, 75 per cent of the EPF balance is allowed for withdrawal. The remaining amount is transferred to the new EPF account when the member gets a job. If one remains unemployed for two months, the amount is allowed for withdrawal.