Employees Provident Fund Organization have made some tweaks in its working to make the system more organized and so that it would actually prove to be beneficial for the members. As per the changes, now, the members can withdraw maximum 90% from their savings with interest as partial withdrawal even before the retirement or if he/she has completed 54 years of age. Another tweak is that in some special cases to repay loans they can withdraw up to 36 month’s basic wage and DA or total of employee and employer share with interest or total outstanding principal and interest, whichever is least. This is on a condition that they have been a member of EPFO for at least 10 years to avail the facility.
They are also allowed to withdraw partially for other purposes like purchase of a home, children’s education, marriage or even if they have been unemployed for more than one month.
Partial withdraw for various events
A withdrawal of up to 50% of the savings can be done by the members on account of any event like marriage etc. For this, the members have to apply in advance to withdraw the money and have to fill the form 31.
Withdrawals for children education
The members are now allowed to withdraw 50% of the amount along with interest for the purpose of their child’s post-matriculation studies according to the modifications.
For the member to avail this facility they need to submit the certificates regarding the course of study to make the transactions.
Withdrawal for purchase/ construction of a house
The retirement fund body allows its members to withdraw 24 months’ basic wages and Dearness Allowances for the construction/ purchase of houses.
The EPFO has also given an option between 24 months basic and DA amount or 36 months basic wages to withdraw the amount.
To become eligible for this facility they have to be a member of the EPFO for at least 5 years to withdraw the amount.
Except for a declaration from the employee, no other document is required for obtaining this advance.