EPF Partial Withdrawal Rules 2016 – Latest EPF Rules. Check EPF Partial Withdrawal Rules 2016, EPF is safety net for middle class. EPF allows the common man to secure life post retirement. This article will discuss meaning, provisions which allow Withdrawal, Rules for Partial Withdrawal and Reasons which are partial Withdrawal is permissible. Now check more details about “EPF Partial Withdrawal Rules 2016 – Latest EPF Rules” from below…..
EPF Partial Withdrawal Rules 2016 – Latest EPF Rules
What is EPF?
EPF refers to Employees Provident Fund, which is maintained by EPFO (Employees Provident Fund of India). This organization requires that any organization having more than 20 employees should be registered.
This is a retirement plan which is open to salaried employees only.Every year , EPF receives contribution from employees and employer @ 12% each.This amount accumulates at prescribed interest rate.
EPF Partial Withdrawal Rules
EPF balance can be withdrawn prematurely provided the employee complies with certain conditions
- Completion of at least 7 years of service
- Withdrawal allowed only for thrice during the period in which it is held
- Maximum permissible Withdrawal – 50% of total employee contribution
- No minimum service period constraint for Withdrawal for medical emergencies
- Withdrawal for purchase or construction of house permissible only once during whole working life
Reasons which are partial Withdrawal is permissible
For marriage (self, siblings or children)
Withdrawal for this reason allowed only thrice during service.Maximum amount allowed to be withdrawn can’t be more than 50%.Mandatory attachments for this reason would be Form 31 and proof of marriage for verification by the employer.
For Education (Self and children)
Available only for post SSC examination courses.For education and marriage , both the reasons together , Withdrawal is permissible thrice only.
For purchasing or constructing house or flat
Certain conditions to be satisfied
- The property should be in name of employee or spouse or joint name with spouse.
- Completion of 5 years of service
- Maximum permissible Withdrawal – 24 times monthly wages (for land) and 36 times monthly wages (for house or flat ) Proof of registration to be given at the time of availing this facility.
Repayment of housing loan
Minimum number of years of service is 10 years.However , you can either withdraw for purchasing land, flat, house or for repayment of housing loan. Withdrawal not allowed for both the reasons. Maximum Permissible Withdrawal – 36 times of monthly wages
Cherry on top is that you can enjoy Withdrawal from employee and employer contribution both.
Repairs or Alterations to Existing house
Maximum Permissible Withdrawal – 12 times monthly wages
Completion of 10 years of service is mandatory.
Withdrawal for this reason is permitted only once.Also house has to be more than 5 years old .
For Medical emergencies
Withdrawal permitted at any time during the service.However maximum permissible Withdrawal is only 6 months wages.
EPF is primarily a facility given to employees for long term wealth creation, the amount accumulated in the EPF accounts get compounded at rate of interest, which results in larger sums of money in later half of the life. Even though, partial Withdrawal allows to take money out, be aware to use it for appropriate reasons, where you cant arrange for money on your own.
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