Saving for the future is intelligent but what if the future is all about surprise situations? If you are employed, then you already have a Provident Fund (PF) account. A portion of your salary every month, along with your employer’s contribution, goes into it. But do you know that you can even withdraw money from the fund when the future beckons.
Let’s walk through the EPFO rules 2025 and how to withdraw your PF amount when you need it most.
Why It Pays to Know PF Withdrawal Rules
Very few people know that PF is not only for retirement. Whether it is for a wedding, medical emergency, or purchasing a house, EPFO gives you a chance to withdraw your PF partially under certain circumstances. Knowing them really pays when you are at tight end.
Marriage Expenses? Spend Your PF Savings
Bells ringing, yours or of someone you care about? If you are a 7-year EPFO member, you can withdraw 50% of your contribution (interest included). Just make sure your account balance is a minimum of ₹1,000.
Missed EMI? Your Credit Score and Wallet Will Bleed!
Withdraw PF for Higher Studies of Children
Education does not come cheap! Fortunately, if you have been paying PF for 7 years, you can withdraw 50% of your own contribution (plus interest) to pay for your child’s higher studies. You can take advantage of this three times in a lifetime.
Build, Buy, or Repair a Home Using PF
Dreaming about a house? At 5 years of EPF, you can withdraw to purchase, construct, or even repair a house. More repairs thereafter you can withdraw again after 10 years of the initial one but once.
Take PF for Emergency Medical Care Anytime
Medical emergencies don’t wait, and EPFO is aware of that. You are allowed to withdraw as necessary, even without serving a prescribed membership period and for as many times as you need.
Withdraw Upto 90% of PF Before Retirement
A year or less to retirement? You can withdraw a maximum of 90% of your total PF but only once. It may be used to pay off immediate expenses or finance your retirement planning.
Job Loss on the Horizon? Tap into Your PF
If you happen to be retrenched or your company closes down, your PF will be your savior. If you happen to be out of job for 15 days or there is a two-month gap with no pay, you can withdraw part of your contribution.
₹10K SIP Turns into ₹9 Cr in 30 Years — Here’s How
Use Your PF Balance to Pay Home Loan Instalments
Have a home loan? If you have 10 years of service in EPF, you can withdraw to repay the principal and interest on your home loan. You may withdraw the lower of the following: 36 months’ pay + DA, contribution, or loan due.
You now understand when and how to utilize your PF, not only for retirement, but expenditure in life.