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The Employees' Provident Fund Organization (EPFO) was set up to improve the retirement security of private sector employees. To raise retirement fund for employees, every month the company and the employee deposit equal amount in PF (Provident Fund). The government also pays annual interest on it. At present the interest rate in PF is 8.15 percent.
As we told you, this amount deposited in EPF is a retirement fund but it can be withdrawn if needed. The government has made some rules to withdraw money for every need. If you are also planning to withdraw from PF, then today we will tell you how much money can be withdrawn from which item.
When and how much money can be withdrawn from PF?
Employees can make complete or partial withdrawal from the PF fund simultaneously. Some rules have been made for this.
Rules for withdrawing full money from PF
When the employee retires, the entire amount can be withdrawn in one go.
If the employee is unemployed for a month or more, he can withdraw 75 percent of the PF amount. In case of unemployment, he can withdraw the remaining 25 percent amount in the next two months.
Partial Fund Withdrawal Rules
Employees can access partial funds to meet their emergency needs. The government has made some rules regarding how much amount can be withdrawn for different needs.
For treatment: If you want to withdraw PF funds for medical emergency, you can withdraw six times the basic salary or the total amount deposited in the employee's share in PF and the interest amount, whichever is less. Are. From this item, the employee can withdraw funds for the treatment of himself, his children, spouse and parents.
for marriage: If you are withdrawing money from PF for marriage, then it is necessary to have 7 years of service. An employee can withdraw money for the marriage of himself, his son-daughter, brother-sister. Talking about the amount, the employee can withdraw only 50 percent of his share from the total deposit.
for education: The account holder can withdraw only 50 percent of the employee's share in PF for the education of his children. Along with this, it is mandatory for him to have 7 years of service.
To buy land and buy or build a house: If you are withdrawing PF money to build a house, then it is necessary to have five years of service. To buy land, any employee can withdraw up to 24 times of his basic and dearness allowance from PF. At the same time, to buy a house, employees can withdraw 36 times the amount of basic and dearness allowance.
Along with this, there are some other conditions also, in which the house or land should be in the name of the employee or in the joint name of the husband and wife. Money can be withdrawn only once during the entire tenure for purchasing land or house. After the withdrawal of money, the construction of the house should start within 6 months and the construction should be completed within 12 months.
To repay home loan: Money can also be withdrawn from PF fund to repay home loan. For this it is necessary to have ten years of service. For this, employees can withdraw up to 36 times their basic and dearness allowance. Along with this, the total amount deposited in PF can also be withdrawn. Or the employee can withdraw an amount equal to the total outstanding principal and interest of the home loan.
If you are withdrawing money to repay a home loan, then this home loan should be in the name of the employee or both the husband and wife. The total amount in the employee's account should be more than Rs 20 thousand. Along with this, the employee will have to submit the documents related to home loan to EPFO.
Home Renovation: Employees can also withdraw PF money for house renovation. For this, he can withdraw up to 12 times his basic and dearness allowance. Along with this, you can also withdraw the total cost deposited in PF or the employee's share and interest. This property should be in the name of the employee or in the name of both husband and wife. To get the money for this item, it is necessary that five years have passed since the house was built.
Partial Withdrawal Before Retirement: If the employee has completed 58 years of age, then he can withdraw 90 percent of the total amount deposited in PF one year before retirement.