EPF Advance, Partial Withdrawal Rules: How Much You Can Withdraw

The EPFO or Employees' Provident Fund Organisation allows subscribers to partially withdraw or take advance from their provident fund accumulation in some cases. An EPFO subscriber can take advance from EPF deposits for purposes such as purchase/construction of house, repayment of loan, non-receipt of wage for 2 months, for marriage of self/daughter/son/brother, for medical treatment of family member etc. For each type of partial withdrawal/advance, the amount varies and the employee needs to meet specific criteria to be eligible for the advance. One can also apply online through EPFO's member's portal for advance/partial withdrawal. Here are the details:
Advance for purchase of house/flat, construction of house including acquisition of site

EPFO allows its members to withdraw up to 24 months of basic wages and DA for purchase of land. For purchase of house/flat/construction, 36 months of basic wages and DA or total of employee and employer share with interest or total cost of the house/construction, whichever is least. One has to be a subscriber of EPFO for at least five years to avail this advance. An employee is allowed only one withdrawal for this purpose during his entire employment. Except a declaration from the employee, no other document is required to process this advance request. Likewise an employee can take loan for improvement/repair of an existing house owned by him or his spouse or joint-owned property.

Partial withdrawal from the fund for repayment of loans in special cases

EPFO allows withdrawal of 36 months of basic wage and DA or total of employee and employer share with interest or total outstanding principal and interest, whichever is least for repayment of loans in special cases. One has to be EPFO member for at least 10 years to avail this advance. An employee needs a certificate from the agency indicating outstanding principal and interest to apply for this partial withdrawal.

Advances in special cases

For some special purposes like lockout/closure of establishment for more than 15 days and employees are rendered unemployed without compensation or if an employee has not received wages for more than 2 months continuously (for reasons other than strike), EPFO gives advance to its members. An employee can withdraw his own contribution along with accumulated interest on that amount for this purpose. There is no specific membership period required for this advance. A certificate from employer is required for this purpose.

4 COMMENTS
If a member has challenged his/her dismissal/retrenchment in court, then he can withdraw up to 50 per cent of his/her own contribution with interest under this special purpose.
EPF advance for treatment of illness

An employee can withdraw up to 6 months of his basic and DA or his/her entire contribution, whichever is least for treatment of his/her own illness or treatment of family members. No specific membership period is required for this purpose.

EPF advance for marriage

For purpose of marriage of self/ daughter/son/ brother/sister an EPFO member can withdraw 50 per cent of his share with interest. He/she must be an EPFO member for at least 7 years to apply for this advance.

EPF advance for higher education of son/daughter

EPFO allows withdrawal of 50 per cent of an employee's share with interest for post-matriculation studies of his/her children. . He/she must be an EPFO member for at least 7 years to apply for this advance. A certificate regarding course of study and estimated expenditure from head of institution is required to be submitted to avail this advance.

EPF withdrawal within one year before retirement

After 54 years of age and within one year of retirement/superannuation, whichever is later, an EPFO member can withdraw up to 90 per cent of his EPF accumulation as partial withdrawal before retirement.