PF Withdrawal Rules 2024
Table of Contents
The Provident Fund, or PF, is a contribution-based savings programme where both the employee and the company make financial contributions to build a fund to cover post-retirement expenses. Subject to specific Provident Fund withdrawal regulations, the employee may access or withdraw the corpus generated.
Employees' Provident Fund Organisation, a statutory organisation in India, is in charge of managing the Employee Provident Fund, which provides financial security for Indian citizens working in the organised sector. To know more about PF withdrawal rules, read on.
What Are Some Scenarios In Which An Individual Can Perform Early Withdrawals From PF?
After a person retires, PF is intended to be removed. However, some Provident Fund withdrawal regulations let the person use the accrued money for urgent needs.
Account holders have three options for PF withdrawals, including -
- Final settlement with PF
- Partial removal of PF
- Advantage of pension scheme withdrawal.
Except in cases of unemployment, an individual may take a portion of the funds in their provident fund account before the account's maturity.
The following are some situations in which an individual may perform advance PF withdrawal:
- Unemployment - If a person who holds a PF account has been out of work for more than a month, they are eligible to receive up to 75% of the entire accrued amount. If the unemployed time lasts more than two months, the account holder may additionally withdraw the last 25% under this clause.
- Education - Owners of PF accounts may withdraw up to 50% of the entire employee contribution to the EPF for their own higher education or to cover their children's post-secondary education costs. After making contributions to the EPF account for a minimum of 7 years, the money will be transferable.
- Wedding - The most recent PF withdrawal regulations additionally let an account holder take up to 50% of the employee share to cover wedding-related costs. The person in question, or the account holder's kid or sibling, should be married. However, this provision cannot be used until 7 years of PF contributions have been made.
- Specially-Abled Individuals - Holders of specially-abled accounts are permitted to withdraw 6 months' worth of basic pay and dearness allowance, or employee contribution with interest (whichever is smaller), in accordance with the PF withdrawal regulations for 2024 in order to cover the cost of equipment. This choice was intended to lessen the potential financial hardship people would face while purchasing pricey equipment.
- Medical Emergencies - A PF or EPF account holder may also take a withdrawal from their EPF balance to cover the cost of urgent medical care for a number of ailments. Both self-use and paying for the treatment of close family members are permitted at this facility. One may withdraw the lesser of six months' basic pay, a dearness allowance, or the employee share plus interest.
- Existing Debts - People may withdraw their complete employee and employer contributions plus interest, or 36 months of their basic salary plus dearness allowance, in order to pay their house loan EMIs. However, this option is only accessible after making EPF account contributions for at least 10 years.
How Can An Individual Enter, Exit And Withdraw From The PF Account?
One of the possible causes of the delay in your PF withdrawal is that you haven't indicated the exit date. To prevent this from happening, the Employees Provident Fund Organisation (EPFO) has developed a special function in its unified site that allows employees to independently record the date that they left their former job or organisation.
The employer can now enter the exit date as well, although in the past just the employers were permitted to do so. You can enter the exit date by logging in to the UAN site with your Universal Account Number (UAN) account number and password. However, before submitting your leaving date, you must first review your service history.
Employee PF withdrawal Rules
Several EPFO regulations governing withdrawals from PF accounts in 2024 have been changed. These changes are intended to make it simpler for subscribers who are struggling financially as a result of the coronavirus outbreak to access their PF money.
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