You can make partial withdrawals from your Employees’ Provident Fund (EPF) in case you are cash strapped. But the fund allows you to make partial withdrawals only under certain circumstances. Here are some of the important situations in which you can make a partial withdrawal, when you can make such withdrawals and how much.
Purposes for which you can withdraw
You can withdraw for important purposes such as buying a house, medical emergencies, your marriage or the marriage of your children and their education, among other things.
For buying a house
You can make a partial withdrawal from your account for buying, constructing or renovating a house, or for the purpose of buying land in order to construct a house. To be eligible to withdraw, you need to be in service as per the EPF authorities for at least five years. This does not mean that you need to be in the same job for five years, you need to clock in five years as an EPF member. You can do so by ensuring you transfer your account when you shift jobs.
The amount that you can withdraw varies. For instance, for buying or constructing a house you are allowed to withdraw your basic salary plus dearness allowance (DA) for 36 months, or you and your employer’s share for 36 months, or the cost of construction, whichever is the lowest. However, these are one-time withdrawals.
For your marriage, children’s marriage or education
In case of your own marriage or the marriage of your children or their post-matriculation education, you can withdraw equal to 50% of your contribution, including the interest, but you need to have clocked in seven years of service. You can make three such partial withdrawals.
For repaying a loan
You can also take an advance in order to repay a housing loan taken from an institution specified in the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, such as nationalized banks and state housing boards. You will get basic salary plus dearness allowance for 36 months or the balance in the EPF account or the amount of outstanding principal and interest, whichever is lower. This is again a one-time partial withdrawal and you need to have been in service of at least 10 years.
For medical emergencies
In case of a medical emergency resulting in hospitalization of at least a month or a surgical procedure or for the treatment of critical ailments such as paralysis, cancer and heart ailments, you can withdraw your EPF any time you want. You can even withdraw for the treatment of your spouse and children. The maximum that you can withdraw is equal to six months of your basic plus DA or your share along with the interest, whichever is less.