Understanding EPF Rules: Partial Withdrawal Limits For Children’s Education Funding

Contributing to the Employees' Provident Fund (EPF) during employment builds a substantial fund, typically earmarked for retirement or pension. However, in certain circumstances such as funding children's education, marriage, or property investment, EPFO members are allowed to make partial withdrawals . It is essential to be aware of the rules governing partial withdrawals and the necessary form for EPF fund withdrawal.

EPF Partial Amount Withdrawal: The EPF account accrues a significant fund through monthly contributions from both the member's salary and the employer. While many view this as a retirement or pension fund, partial withdrawals are permitted for specific needs. To withdraw funds for purposes like education, marriage, or property, it is crucial to understand the rules and use the appropriate withdrawal form.

Withdrawal of 50 percent amount for children’s education:

If an individual wishes to withdraw funds from the EPF account for personal or children's education, they can do so only after completing 7 years of service with continuous contributions. Post this period, up to 50 percent of the individual's contribution to the EPF account can be withdrawn.

Partial withdrawal in other situations:

Partial withdrawals are not limited to education expenses and can extend to events like weddings for close family members. Similar to education withdrawals, a minimum of 7 years of continuous service is required to withdraw up to 50 percent of the individual's contribution.

For housing-related needs, an employee with 5 years of continuous service can withdraw funds for construction, purchase, or repair of a house. However, there are limits imposed by the rules on the withdrawal amount.

Home renovation can also be funded through EPF withdrawals, with the amount being up to 12 times the monthly salary for those who have contributed continuously for 5 years. Additionally, individuals with a minimum of 3 years of service can withdraw up to 90 percent of the total EPF contribution (employee + employer) for home loan payments.

In cases where an individual has lost or left their job, they can withdraw up to 75 percent of the EPF amount after a month. The remaining amount will be transferred to the new EPF account upon securing new employment.

Form 31 for partial withdrawal:

To make partial withdrawals for financial needs during employment, individuals need to use PF Withdrawal Form 31, also known as EPF Claim Form 31.

Full withdrawal scenarios and forms:

In situations such as serious illness, permanent disability due to a work-related accident, company closure, or emergencies, an EPF account holder can withdraw the entire amount without any specific time or amount conditions. For medical withdrawals, proof of hospitalization for a month or more is required.

If a company is closed for over 15 days, employees can withdraw their entire EPF share. Similarly, those unemployed for two consecutive months can withdraw the entire PF amount. Post-retirement, individuals are allowed to withdraw the entire EPF fund.

For complete EPF fund withdrawals, individuals need to use PF Withdrawal Form 19, also referred to as EPF Claim Form 19.