Understanding EPF Withdrawal Limits: Discover the Amount EPF Members Can Withdraw
Money Matters: A Lowdown on EPF Withdrawals
The Employees Provident Fund Organisation (EPFO), a mammoth social security entity, helps employees save funds for significant life events. These events could range from splashing cash on weddings, funding higher education, or constructing/purchasing a house. The fun doesn't stop there; you can also dip into your savings for medical emergencies, unemployment, or any bumps life throws at you.
Withdrawing Your EPF
Got some life-changing plans? Ready to grab a portion of your savings stash? Fret not, my friend! Here are three types of withdrawals you can make:
- Final settlement:Ditch the day job and retire? Time to call it quits and reap the rewards!
- Partial withdrawal:Need a quick injection of cash? Splurge on those marriage ceremonies or renovate your property—all while keeping some savings tucked away for the future.
- Pension withdrawal benefit:Ready to embrace the golden years? Ensure financial stability in your twilight years with a well-deserved pension withdrawal.
A heads-up, though! If you're in employment, you can't withdraw your savings (unless it's for buying a home, of course).
Life Gets Slippery: Unemployment, Medical Emergencies, and More
Not everything in life goes as planned. On the off chance that you find yourself unemployed, the EPFO allows 75% of your savings if you've been jobless for at least one month. If the slump continues for two months, you can draw the whole balance.
Things take a turn for the better? No worries! The remaining 25% will be transferred to your fresh EPF account once you find work again.
Medical emergencies require prompt attention – and money. As long as you've been contributing to the fund for at least 3 years, you're eligible for partial withdrawals. No specific limits are mentioned, but the EPFO employs standard withdrawal norms.
When it comes to education, you can withdraw up to 50% of your accrued savings to meet your or your children's schooling expenses, provided they've graduated beyond the 10th grade.
Your Forever Home
Want to invest in property? You can withdraw 90% of your savings for your dream residence. If you're renovating, you can even get an advance from your PF account—as long as your property has been standing for more than five years.
New rule alert! If you process your claim online, you'll save time. Say goodbye to the 20-day wait for processing and hello to a speedy 3-day turnaround. No need for a cancelled check, either!
Remember, any withdrawals made within five years of account creation are subject to taxes. However, there will be no TDS (Tax Deducted at Source) if you withdraw less than ₹50,000.
A Marriage to Remember
Finally, planning a wedding? Worry not! The EPFO permits up to 50% of your savings for the wedding bells to ring.
*Bonus Read: EPFO Simplifies PF Claim Settlement Process: All Changes Explained*
Lastly, when the time comes, make sure you've hit the big 55 and filed your final settlement claim to enjoy your EPS (Employee's Pension Scheme) benefits, assuming you've clocked in at least 10 years of service.
- If you find yourself unemployed for more than one month, the Employees Provident Fund Organisation (EPFO) allows a partial withdrawal of up to 75% of your savings.
- In the event of a medical emergency, you can make a partial withdrawal from your EPF account as long as you've been contributing for at least three years.
- For weddings, the EPFO permits up to 50% of your savings to be withdrawn for the wedding-related expenses.
- When you reach the age of 55 and have at least 10 years of service, you can withdraw your entire EPF savings under the final settlement, which also makes you eligible for Employee's Pension Scheme benefits.
