Can You Withdraw from Your EPF Account before Maturity?

Every month your Salary Slip may be showing deduction towards Employee Provident Fund (EPF) account, it includes both you and your employer’s contribution towards EPF account. You might be rightly thinking that your contribution towards EPF is meant for your retirement and you can withdraw the accumulated money in EPF only at the time ofretirement. At time you may have urgency for money and you may be looking for various sources to get money. But why search for other source, when your own money can come to your rescue. Yes, there are certain circumstances when you can actually withdraw your money from EPF account before maturity. 

Let’s take a look at such circumstances, and the criteria that apply for withdrawal from your EPF account: 

1. Construction / Purchase of a House including acquisition of site or plot for such purpose
   
   
   • You should have completed minimum 5 years of service.
   • Purchase of a House can be for Self, Spouse or joint ownership with spouse.
   • In case of purchase of a site or plot for construction of a house, withdrawal amount should be least of the following:
     
     
     1. 24 months of your Salary (Basic + Dearness Allowance) OR
     2. You and your employers share of contribution with interest OR
     3. Actual cost of acquisition of site or plot.
        
   • In case of purchase of a built in house OR construction of a house, withdrawal amount should be least of the following: 
     
     
     1. 36 months of your Salary (Basic + Dearness Allowance) OR
     2. You and your employers share of contribution with interest OR
     3. Actual cost of acquisition of House.
        
   • In case you are withdrawing the amount for construction of the house, then construction should begin within 6 months of the 1st installment and should get completed within 12 months of the last installment.
   • In case you are withdrawing the amount for purchase of the house or the site or plot, then purchase shall be completed within 6 months of the withdrawal of the amount.
     
2. Addition / Repair to the existing house
   
   
   • House should be owned by for Self, Spouse or joint ownership with spouse.
     
   • Withdrawal amount should be least of the following: 
     
     
     1. 12 months of your Salary (Basic + Dearness Allowance) OR
     2. Your share of contribution with interest.
        
3. Repayment of loans 
   
   
   • You should have completed minimum 10 years of service.
   • Loan should be in the name of Self, Spouse or joint ownership with spouse.
   • Withdrawal amount should be least of the following:
     
     
     1. 36 months of your Salary (Basic + Dearness Allowance) OR
     2. You and your employers share of contribution with interest OR
     3. Outstanding amount of loan (Principal + Interest).
        
4. Medical Treatment in case of certain major Illness
   
   
   • Medical treatment can be for self or a member of your family.
   • Your employer should have granted leave for treatment of the illness.
   • Certificate from a doctor of the hospital is required as a proof.
   • Withdrawal is possible in case hospitalization lasts for one month or more.
   • Withdrawal is possible in case of any major surgical operation in a hospital.
   • Withdrawal is possible in case of suffering from T.B., leprosy, paralysis, cancer, mental derangement or heart ailment. Withdrawal amount should be least of the following: 
     
     
     1. 6 months of your Salary (Basic + Dearness Allowance) OR
     2. Your share of contribution with interest in the fund.
        
5. Marriage or Education
   
   
   • You should have completed minimum 7 years of service.
   • You can withdraw the amount for marriage or education of self, children or siblings.
   • Maximum amount of withdrawal can be 50% of your share of contribution with interest in the fund.
     
6. Withdrawal within one year before the retirement
   
   
   • Maximum amount of withdrawal can be 90% of the fund value.
   • Withdrawal is possible at any time after attainment of the age of 54 years or within one year before retirement, whichever is later.
     

If any of the above mentioned circumstances fits your requirement then you can consider EPF account as a source of fund for funding your financial goals. The criteria’s for above mentioned circumstances may be difficult for you to remember, but you can just keep in mind the circumstances under which withdrawal is possible and refer these criteria’s when you are actually in need of funds under those circumstances.

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