Unveiling the Enigmatic: CIC Blog Insights

Sl. No. 

Particulars of reasons for withdrawal

Limit for withdrawal

No. of years of service required

Other conditions

1

Medical purposes

Lower of below:
1. Six times the monthly basic salary, or        
2. The total employee’s share plus interest

No criteria

Medical treatment of self, spouse, children, or parents

2

Marriage

Up to 50% of employee’s share of contribution to EPF

7 years

For the marriage of self, son/daughter, and brother/sister

3

Education

Up to 50% of employee’s share of contribution to EPF

7 years

Either for account holder’s education or child’s education (post matriculation)

4

Purchase of land or purchase/construction of a house

For land – Up to 24 times of monthly basic salary plus dearness allowance.       
For house – Up to 36 times of monthly basic salary plus dearness allowance,        
The above limits are restricted to the total cost.

5 years

1.    The asset, i.e. land or the house, should be in the employee’s name or jointly with the spouse.       

2.    It can be withdrawn just once for this purpose during the entire service.       

3.    The construction should begin within 6 months and must be completed within 12 months from the last withdrawn instalment.

5

Home loan repayment

Least of below: 
1. Up to 36 times of monthly basic salary plus dearness allowance, or       
2. Total corpus consisting of employer and employee’s contribution with interest, or       
3. Total outstanding principal and interest on housing loan

10 years

1.    The property should be registered in the name of the employee or spouse or jointly with the spouse.       

2.    Withdrawal permitted subject to furnishing of requisite documents as stated by the EPFO relating to the housing loan availed.       

3.    The accumulation in the member’s PF account (or together with the spouse), including the interest, has to be more than Rs 20,000.

6

House renovation

Least of the below: 1.Up to 12 times the monthly wages and dearness allowance, or       
2. Employees contribution with interest, or Total cost.

5 years 

1.    The property should be registered in the name of the employee or spouse or jointly held with the spouse       

2.    The facility can be availed twice:       
a. After 5 years of the completion of the house,        
b. After the 10 years of the completion of the house

7

Partial withdrawal before retirement

Up to 90% of accumulated balance with interest

Once the employee reaches 58 years and withdrawal should be before one year of retirement or superannuation (retirement fund for employees by the company)