When you work for a private or a public limited company in India, a portion of your Salary gets deposited as Provident Fund. Along with your contribution, your employer is also bound to deposit a contribution on their behalf.
The basic purpose of the PF money is to help you when you don’t have a job by offering a financial shield.
Yes, when you leave a job and don’t get a job for the next 2 months, then you can apply for the withdrawal of the PF amount to use it as per your needs.
At the time of applying for PF withdrawal, you also need to submit a cancelled cheque to verify your bank details. It is done to ensure that the PF amount is being credited only into a legitimate person’s bank account.
If you wanted to know about instances when you can withdraw your contributed PF money, then here is a short post to help you know more!
When can you withdraw your PF money?
- When you have retired from services
- When you are unemployed for a continuous period of 60 days (2 months) immediately before the date on which you apply for PF withdrawal
- When a member dies before the contributed PF amount becomes payable, or when the amount is payable, but the payment has not yet been made
When can you withdraw your PF money partially?
- Purchase of a site for the construction of the house
If you want to withdraw your PF money partially, then you should have completed a membership of at least 5 years with Employees Provident Fund Organization (EPFO). You are allowed to withdraw basic wages and dearness allowance for 24 months, the exact cost of the purchasing of the dwelling site. If you are buying the site only for the construction of a house, and if it is free from any encumbrances, only you can withdraw money partially.
- Construction of a dwelling house
In this case, also, you should have an association with EPFO for a period of 5 years at least. You can withdraw only 36 months’ dearness allowance and basic Salary, and the amount must be or equal to the cost of the buying of the dwelling site. The said site should be free from all disturbances and will not be treated as such if in the name of an agency.
- Partial grant of final withdrawal on attaining 57 years of age
Have you attained the age of 57 years or if you have only 1 year left for the completion of the services before your actual retirement? In this case, then you can withdraw the PF money. Under this circumstance, you are entitled to withdraw 90% of the amount available in your EPFO account. The rest 10% can be yours after completion of your services post-retirement age or when you don’t have work for 2 months.
Other than these instances, you can also withdraw PF amount partially in cases such as:
- For member’s own marriage
- The marriage of his son, daughter, brother and sister
- Purchase of a dwelling flat/house from an agency
- Buying of a newly built or an old house/flat from an individual
- Buying of a flat/house on ownership basis from a promoter
- For undertaking repairs or property renovations in properties owned by the member, spouse or jointly with the spouse
- Withdrawal for expenses on the part for member’s daughter or son matriculation
- For using it as a fund for illness in certain cases
You can also take out your PF money using your PAN Card. PAN is required for EPF withdrawal otherwise TDS is deducted. Most of the instances where you can withdraw your PF money fully and partially are now enlisted. The exact amount that you will be able to use will depend on your case and membership history with the EPFO.